Bankr. No.:
04-10263
Adv. No.:
04-1023
Chapter:
7
Date of Decision:
April 15, 2005
Issue:
Whether a creditor, who had received more than $600 on a wage garnishment during the preference period, could utilize the exception provided by 11 U.S.C. § 547(c)(8), where the creditor paid over a small sum of the garnished funds to the debtor pre-petition to drop the sum retained below $600?
Ruling:
The creditor could not use the preference exception provided by § 547(c)(8). The aggregate value of the garnished funds the creditor received during the preference period exceeded $600. That the creditor voluntarily gave a small sum to the debtor, which dropped the total below $600, did not change the aggregate value transferred to the creditor.
Full Bankruptcy Court Decision:
