September 23, 2016
All creditors, even the State, must abide by the Bankruptcy Court rules.
Background:
- 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.
Bankruptcy Court Decision:
- 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
State could not argue this Case in a State Court proceeding; Bankruptcy Court ruling is binding
