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Tax Refund then File Chapt. 7 Bankruptcy in INDIANA

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I'm currently waiting to file for my bankruptcy till after I get my tax refund (will file taxes as soon as I get my W-2's so hopefully around Jan. 15, 2011) so I can pay my lawyer to file for my bankruptcy (upon lawyers advice to keep my tax return and to pay him). I've been making small payments since Sept. but the bulk has yet to be paid.
I just recieved in the mail a summons to appear before court Jan. 11 @ 1pm for a hospital bill that went into collections (was $565.00 now over $900 for court and lawyer fees). I called my lawyer and notified him and was told that I should show up to court, tell them I am going to file by the end of Jan/beginning of Feb and give them his contact information. He said they might try and do a wage garnishment, but since 1. I only make $7.40/hr (.15 cents more than minimum) it is not likely the court will do so, but they might. (I didn't know if any one knew what the answer to that was...can the court garnish basically minimum wage?) and 2. since we will be filing so soon after my judgement within hopefully 2-3 weeks after I file my taxes I should have my return; the garnishment may not be in place yet. (How long does it take the courts to set up a wage garnishment after a judgement has been made?)

I do want to make this clear- I would not be filing for bankruptcy in the first place if my work after being notified that I am pregnant with my first child after working here for 5 years cut my pay by $5.47 (I was making $12.87/hr and they cut me down to $7.40/hr doing the same exact job) because they said my job requires me to lift (But it's really funny how by their own printout of what my job description is I have a desk job, no lifting is stated in the description). I am 28 years old and before my company cut my pay I was never late on any payments, never had a bad thing on my credit and had almost perfect credit. I filed a claim with the EEOC against my company and they investigated but then EEOC said the company can do that if they feel my job requires me to lift from time to time. The EEOC said that I have 90 days from their letter if I wish to I could get my own attorney and file a lawsuit against my company but it's on my dime. (seeing as how I can't even afford my lawyer to file bankruptcy without my tax check. I can't afford a personal attorney to sue my company for my back pay).

So all in all my questions are:

1. In Indiana can the court garnish basically minimum wage (my $7.40/hr)? and usually by how much?

2. How long after judgement does the court put into effect the garnishment and it starts coming out of my measley pay as it is?

3. Can the courts ask for my tax check if I file BK after I recieve my check direct deposit and pay the lawyer (I will not have but maybe $50.00 left out of my tax check after I pay my lawyer)? Tax check = $990. if I'm lucky.

As far as I know minimum wages cannot garnished by the creditor. As per Indiana state laws, the maximum part of an individual's aggregate disposable earnings for the workweek subjected to garnishment will be the lesser of 25% of the disposable earnings or the amount of the disposable earnings which is 30 times more than the federal minimum hourly wage. The court may want to see your tax checks when you file bankruptcy.

Sub: #1 posted on Wed, 12/29/2010 - 01:33

Anna Sweeting Anna Sweeting

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