What happens if the debtor in a judgment files for relief under federal bankruptcy laws?
Once a bankruptcy is filed, all collection activity against that debtor must be halted under an automatic Stay Order. The Sheriff does not halt collection efforts unless written notification of the bankruptcy is supplied to the Civil Division. The Civil Division verifies the bankruptcy and issues a release of the garnishment or collection efforts to the employer. If a plaintiff is not included as a debtor in the bankruptcy, that plaintiff must seek relief from the bankruptcy court. The plaintiff can then present to the Sheriff that order lifting the stay, and the Civil Division resumes collection efforts in that case.
