Wage garnishments by the State of New Jersey are not permitted when you are in a Chapter 13 Bankruptcy. All creditors, even the State, must abide by the Bankruptcy Court rules. The State of New Jersey must stop wage garnishments for child support when you file a Chapter 13 bankruptcy. The State Courts do not have the right to argue to issue wage garnishments when you file a Chapter 13 Bankruptcy. Bankruptcy Court rules are binding. Here is an example of one case related to Child Support in a Chapter 13 Bankruptcy
Child Support Chapter 13
- Debtor was behind in Child Support Payments.
- State garnished debtor’s wages
- Debtor filed a Chapter 13 Bankruptcy
- Child Support Payments were included in the Plan as well as the arrearages
- State continued to garnish debtor’s paycheck
- Debtor requested State stop garnishments
- State would not stop garnishments.
- Once a Chapter 13 is confirmed, all parties must abide by the payments through the Plan
- Debts of child support are non-dischargeable and were being paid through the Plan
- Bankruptcy Court ordered that the State stop the Wage Garnishments