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Collections: Garnishments & Judgments |
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More Advice Team |
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A creditor has started to garnish my paycheck. What can I do to stop this garnishment? -Jim |
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Jim,
You can stop a garnishment by negotiating with the creditor or paying the balance in full.
You might also be able to request a hearing to argue that it will be a financial hardship on you if your property is taken. Filing bankruptcy will also stop some wage garnishments. Because these are legal issues, I recommend you discuss your options with an attorney.
The Advice Team |
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Can more than one party garnish your wages at the same time, up to the percentage allowed out of your income? Also, can a debt incurred by my new husband be garnished from my wages. Lastly, can a party attach to my income tax refund? -Linda |
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Linda,
These are all legal questions that I am not capable of answering for you. You will need to seek the services of an attorney for answers. Each state has their own restrictions on garnishment of wages and only an attorney from your state can give you correct answers. You might also be able to get answers from a consumer protection office in your state.
The Advice Team |
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I just received notice from my payroll department that 25 percent of my disposable income will be garnished starting next month. I filled out interrogatories but received the news from my employer and was never mailed anything to my home or served so I had time to reply through the courts. It that legal? Also I am a single parent head of household. Can they garnish 25 percent per pay period to repay this debt? I will be living at poverty level. How can I contest this? -Karen |
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Karen,
In most states, before a creditor can garnish a debtors wages, the creditor must get court approval. Please check with the court to determine the outcome of any actions taken related to your debt.
It might also be worth your time to consult with an attorney about your rights. If you cannot afford a private attorney, you can contact your local legal aid office. Here is a link I found to direct you to your nearest legal aid provider: http://public.findlaw.com/library/state-legal-aid.html
If the garnishment is legal, the federal Consumer Credit Protection Act (CCPA) permits a creditor to garnish up to 25 percent of an employees net earnings. The provisions of the CCPA are administered and enforced by the Department of Labor, Employment Standards Administration, Washington, DC. If you would like further clarification of this law and possibly contest this garnishment, you can contact them at 866-4USWAGE.
Good luck,
The Advice Team
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If monetary judgment is obtained against military personnel in state court civil proceeding, can he be garnished? -Matthew |
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Matthew,
It is my understanding, effective April 3, 1994, wages of the military may be garnished. A judgment must be obtained in the state or county in which the debtor works and service must be made on the payroll office in the location where the debtor works. The only exception to this garnishment might be if the service member is stationed a state that prohibits garnishment.
The Advice Team |
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Recently I had a credit card balance turned over as an unpaid debt. The last words I had with the creditor was that whoever would attempt to collect this would have the right to garnish my wages because I am working. Is this true? Where can I go to find out exactly what my rights are? -Gerry |
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Gerry,
Each state sets their own laws as to what, and how, a creditor can collect on a delinquent account. Some states permit a creditor to garnish a debtors wages, others don't. Some states exempt just about all assets a debtor has from seizure by a creditor to satisfy the payment of a debt. Other states can force you to sell some of your assets to satisfy a judgment.
For a list of state and county consumer protection offices, please visit the Federal Citizen Information Center's website at http://consumeraction.gov.
Good luck,
The Advice Team
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What has to take place before any one can take money from your bank account to collect on an outstanding debt? -Judy
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Judy,
Generally, before a creditor can attach any funds in your bank account, the creditor has to sue you and obtain a judgment against you. With a judgment, the creditor can then go to your bank and demand that your bank "freeze" all funds you have in your bank account. Sometimes a creditor will enter a "default judgment" where a default resulted only because a debtor never knew a suit was started.
The Advice Team |
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