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In re Underwood (Case No. 18-70168) 5/30/2018

The creditor obtained a judgment against the Debtor outside the preference period and issued a garnishment summons and writ of fieri facias for execution on the judgment.  Prior to the return date of the garnishment, the Debtor filed bankruptcy.   Upon request of the Debtor, the Court entered its standard order quashing the garnishment.  The creditor filed an objection to this order.  As the funds were still on deposit at the Debtor’s bank and no order was entered transferring the funds to the creditor, the bankruptcy filing and the automatic stay stopped further steps toward delivery of the funds to the creditor. Thus, the Debtor still retained an interest in the property and had the right to exempt the property on his schedules and avoid the creditor’s judicial lien.   The Court overruled creditor's objection to order staying garnishment.

 

Date: 
Wednesday, May 30, 2018
Category: 
Automatic Stay
Avoidance
Preference
Chapter: 
13