Chapter 13

My husband & I filed Chapter 13 in Aug 2007. In Nov 2007 we receive a call from a creditor that was missed in the re-payment plan. I told the creditor that we filed Chapter 13 and he hung up on me. We received statements each month from the creditor and I sent a couple back with our case # and attorneys name. Today we recevied a letter from the creditors attorney stating they were going to garnish our wages. We already are paying back $800 a month to the Chapter 13. Can they do this?? We live in Ohio. I plan to call my attorney but it takes them days to call me back and they charge me (add to the payment plan) every time I have called them in the past. Thanks for any help!

The creditor has been notified of the BK and even billing you is a violation of the bankruptcy stay. Notify the creditors attorney of the bankruptcy and the violation and that you informed the creditor to contact your attorney.

But I didn't list this creditor when we filed. I totally forgot about it as it was a bill from 2006.

They still should have called your attorney and had it added to the bankruptcy.

I just called their attorney. He said that I needed to send him a time stamped copy of the court document showing his client was included in the bankruptcy. I said that I told the creditor my case # & attorney and he said it my responsibility to submit it to my attorney not his. He said I had 15 days or then he would file for garnishment.

Sounds like a threat that is against the bankruptcy stay.

Thank you for your replies...makes me feel alot better! Should I contact my attorney and notify them of this?

Oh yeah.

Thanks again and have a great night! Robin

I am A bankruptcy attorney in Northern Ohio. You can still amend the Bankruptcy to add the creditor. However, since they have been notified of the bankruptcy, they cannot begin any collection actions without permission from the bankruptcy court (i.e. lifting the stay). Any attempt by the creditors is a violation of federal law and opens not only them, but their counsel, up for sanctions and other penalties.

Thank you! I called my attorney today and he said the exact same thing. I just have to pay $26 to amend the plan and it will be taken care of. Thanks again so much! Robin