File an adversary proceeding (a mini-lawsuit within your bankruptcy case) against the creditor. Identify the garnishment amounts, dates, and the creditor who received them. The trustee may pursue this on behalf of the estate, or you may need to file the action yourself.
The 90-Day Preference Window
Under Section 547, money taken from you by a creditor within 90 days before filing bankruptcy may be recoverable as a "preference." This includes wage garnishments, bank levies, and seizures. The amount must exceed $600.
How to Recover It
File an adversary proceeding (a mini-lawsuit within your bankruptcy case) against the creditor. Identify the garnishment amounts, dates, and the creditor who received them. The trustee may pursue this on behalf of the estate, or you may need to file the action yourself.
What You Can Recover
The total amount garnished within 90 days of filing, minus the $600 threshold. If the creditor is an "insider" (family member, business partner), the lookback period extends to one year.
In Chapter 13, the trustee typically handles preference recovery as part of the estate administration. In Chapter 7, the trustee may pursue the preference action if the amount is large enough to justify the effort. If neither the trustee nor your attorney pursues the action, you may have grounds to request that the court authorize you to pursue it yourself.
Timing matters. If you know you are going to file bankruptcy and a creditor is actively garnishing your wages, filing sooner rather than later stops the garnishment through the automatic stay and maximizes the amount you can recover as a preference. Every paycheck garnished before you file is money that may or may not be recoverable, depending on whether it falls within the 90-day window. Consult with your attorney about strategic filing timing if you are currently being garnished. See also the cost of waiting to file.
Learn about the automatic stay
Automatic Stay Guide