Case Summary:
Debtors filed adversary proceeding, contending that garnishment payments to creditor within the 90 days preceding bankruptcy constituted a preference under 11 U.S.C. § 547.  The “transfer” of the debtor’s wages did not take place until the point at which the debtor earned the wages.  Until that time, he had no right to the funds and could not transfer them before that time.  As a result, the garnishment of his wages within the 90 days prior to the bankruptcy filing constituted a preference.  Citing In re Ballard, 131 B.R. 97 (Bankr. W.D. Wis. 1991).

Key Terms:
Preferences