Wage Garnishment

[stoklee]

What is the name of your state? ohio

My husband and I are paying off a Chapter 13. Since then I have gotten myself into a problem with cash advance agencies. I owe approx. 4K, I am trying to pay them off little by little. Can they take me to court and garnish my wages for not paying as quickly as they would like? Am I protected as long as I am making payments on the debt and also can I get my wages garnished while paying off a Chapter 13?

[wayne-o]

while i dont know if they can garnish your wages since your pay is currently being reduced for the chapter 13, they can pursue these debts since they were acquired after the 13 filing. Now for the bad news, you may have put your chapter 13 in jeopardy by getting these payday loans. Most bankruptcies prohibit you from getting new credit without the permission of the trustee. Your chapter 13 could possibly be dismissed for your actions. Im sure Bigun or Ladynred can shed some more light on this

[Ladynred]

Wayne-o is correct. You are NOT allowed to incur new debt during a Ch 13 (or 7 for that matter) w/o the express permission of the Trustee. You MAY be able to grovel and have the debts included in your Ch 13, provided the Trustee doesn't just move to dismiss your case.

Collections and garnishments are not allowed while you are in Ch 13 - the automatic stay persists until discharge - or dismissal.

You need to come clean with your BK lawyer about these loans and see if you can get thru this w/o having your Ch 13 dismissed or incurring any other type of wrath from the Trustee.

If you cannot make it while you're in Ch 13, then you need to consider amending your plan so that you CAN afford to live AND make your payments.