Garcia v. P2 Properties (In re Garcia)

OPINION

Honorable David T. Thuma, United States Bankruptcy Judge

The issue before the Court is whether a garnishing creditor is subject to a preference claim when the garnishment was ordered more than 90 days pre-petition, but the wages were earned and paid to the creditor during the preference period.. The Court holds that, under such circumstances, the garnishment lien and the paid wages are subject to avoidance under § 547.1 As the current record does not make clear when the wages were earned by the debtor and paid to the garnishing creditor, the Court will take evidence on that issue before…