5th Circuit: Creditor’s Garnishment of Wages during 90-day Preference Period is Avoidable Even if Garnishment was Served Prior to that Period.

5th Circuit: Creditor’s Garnishment of Wages during 90-day Preference Period is Avoidable Even if Garnishment was Served Prior to that Period.

Tower Credit received a state court judgment against Debtor in Louisiana.

A few years later, Tower garnished the Debtor’s wages. The Debtor filed Chapter 7 in order to stop the garnishment.

The Chapter 7 Trustee filed an adversary proceeding seeking to avoid the garnishments that Tower collected within 90 days of the petition date under 11 USC 547(b).

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