Bankr. No.:
03-40141
Adv. No.:
04-4023
Chapter:
7
Date of Decision:
September 1, 2004
Issue:
Whether defendant-creditor had to return garnished wages (under Nebraska law) as a preferential transfer where a garnishment lien was created before the preference period and where the wages were earned outside the preference period, but where the creditor actually received the funds during the preference period?
Ruling:
According to the bankruptcy case law for the District of Nebraska, garnished wages are transferred when the debtor acquires rights to them. Since that happened in this case when the debtor earned the wages outside the preference period, no preferential transfer occurred.
Full Bankruptcy Court Decision:
