neighborhood bank loan also argued the bankruptcy courtroom should not rule on The problem in almost any event as the influence in the discharge was commonly identified in condition courtroom (which was the overall rule at some time and until finally 1970 if the code was amended putting The problem of non-dischargeability completely in bankruptcy court docket). The personal bankruptcy courtroom disagreed and enjoined the garnishment. The court docket of appeals as well as Supreme Court affirmed.
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Justice Sutherland stated the bankruptcy court docket had the best to rule on the issue simply because “courts of personal bankruptcy are fundamentally courts of equity, as well as their proceedings [are] inherently proceedings in fairness.” He explained that a lien on upcoming wages is either a lien which will not exist or it really is “invalidated” by the individual bankruptcy code because the power to earn is “not translated into home in the meaning from the Bankruptcy Act till it's introduced earnings into existence.
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