66 East Main Street, 3rd Floor Little Falls, NJ 07424

State Cannot Garnish Pay for Chapter 13 Debtors

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September 23, 2016

All creditors, even the State, must abide by the Bankruptcy Court rules.


  • 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