Section 3.24 Bankruptcy

• Library: Creditors' Remedies (2009 Ed. + 2014 Supp)

VII. (§3.24) Bankruptcy

Subject to the exceptions set forth in 11 U.S.C. § 362(b), the automatic stay that goes into effect upon the filing of a bankruptcy petition prohibits the commencement or continuation of a garnishment. Section 362(a). One notable exception is that the automatic stay does not apply with respect to a garnishment of the debtor's income for payment of a domestic support obligation under a judicial or administrative order or a statute. Section 362(b)(2)(C). Upon receiving notice of a...