top of page

Recovering garnished wages through bankruptcy in Houston, Texas

If someone’s wages are being garnished, bankruptcy does the following two things:

1: Stop the garnishment through what is known as the Automatic Stay. The Automatic Stay stops all collection activity, including wage garnishment. If they collect after you filed bankruptcy, they are violating a federal law.

2: Recover the past 90 days of garnished wages. The person that filed bankruptcy gets their money back.

Section 522(h) and Section 547 of the United States Bankruptcy Code allows you to recover your wages that were garnished if there was over $600.00 in garnished wages.

The reason you can get the money back from the people that garnished it is because the garnishment was a preferential transfer. A preferential transfer means that a transfer occurred from you to the creditor (the garnishing) during a time you are presumed to be insolvent (the 90 days before filing bankruptcy). Therefore, the creditor was preferred over other creditors. A preferential transfer is not permitted.

If you or someone you know in the Houston area has his or her wages garnished, contact us at the Rashid Law Firm for a free consult (832)209-8833, we have experience in recovering garnished wages and have successfully recovered garnished wages. We would be glad to help you.

Recent Posts

See All

What is cross collateral in bankruptcy?

An example of cross collateral is when you have a vehicle being financed with a credit union and also have a credit card with that same credit union. If you file for bankruptcy under chapter 13, the v

Abogado de bancarrota en Houston

Si estas buscando un abogado de bancarrota en Houston que habla español pues ya lo encontró. El abogado Rashid habla español con fluidez ya que se crío en Puerto Rico. llámenos ahora si necesitas elim


bottom of page