Wage garnishment sometimes referred to as garnishment, is a legal action that mandates the deduction of a debtor’s earnings by the garnishee (a third party – usually the debtor’s employer) to resolve and pay up a creditor. Garnishments can be performed on any debt, such as back taxes, consumer debts, child support, unpaid court costs, and so on.
The Process
The process usually starts with a creditor filing a Request for Garnishment on Wages with the court. Once this is done, the judge or court clerk signs the Request and, as such, becomes a Writ of Garnishment. This Writ gives the garnishee the right to withhold the property (usually wages) of the debtor in his/her care when filing the Writ. The garnishee then determines how the deduction will be conducted on the debtor’s wages until the judgment is satisfied, or there is an order by the court to stop.
Actions to Take After a Garnishment Judgment
You have the right to be legally informed of the garnishment, and if you believe there was an error in judgment or it is causing unjustified harm to your finances, you have the right to challenge the order. You should file a dispute if you discover that the notice has wrong information about the debt owed. Weigh your options by consulting a consumer lawyer to discuss the alternative options you have. Such options include:
- Challenging the judgment if the garnishment was made in error.
- Working out a different deal with your creditor.
- Considering bankruptcy if wage garnishment is too much of a financial burden to bear.
- Accepting the garnishment and paying off as the judgment states.
Consumer Credit Protection Act (CCPA)
The CCPA is a federal law that checks garnishment. It sets a limit on how much of a debtor’s wages can be garnished weekly. The law also protects employees from being unfairly discharged from their job due to garnishment due to incurred debts. However, wage garnishment limits set by the CCPA do not apply to child support and alimony, bankruptcy orders, student loans, or back taxes, and they usually do not require court order; a debtor’s wages can be garnished automatically.
If you would like more information about wage garnishments and bankruptcy, contact a Rio Grande bankruptcy attorney.