A creditor may use wage garnishment to deduct money from your paycheck to pay your outstanding debts. Earnings can be withheld by administrative orders to settle certain debts, including unpaid taxes, student loans, child support, spousal support, or debts that have been reduced to a judgment. Any financial setback could be disastrous for you and your family if you’re living paycheck-to-paycheck. A skilled wage garnishment lawyer is needed when a creditor contacts you or threatens to deduct money from your paycheck. A wage garnishment lawyer can stop creditors from taking your hard-earned money and assist you in achieving financial independence immediately. This article looks at how a lawyer can assist with filing for bankruptcy wage garnishment.
What is Wage Garnishment?
A wage garnishment is a legal process wherein an employer is mandated by a court order to deduct an employee’s earnings to pay an obligation, such as child support. No matter how many levies or actions are taken to collect a debt, Title III of the Consumer Credit Protection Act (CCPA) forbids an employer from firing a worker whose wages have been garnished for that particular obligation.
Some debts can be garnished without a judge’s approval. Among them are:
- Overdue taxes
- specific kinds of student loans
- Back-child support
- Back alimony payments
Factors to Consider when Hiring a Wage Garnishment Lawyer
Garnishments to pay judgments. If you have a judgment obtained against you, a creditor may garnish your salary to satisfy it. To have your employer pay a portion of your income to the creditor to settle your debt, the creditor must first file paperwork with the court.
Wage garnishments for administrative purposes. A creditor may occasionally seize money from your paychecks to pay off debts without obtaining a judgment. There is a term for these types of garnishments: “administrative wage garnishments.” The law mandates wage garnishment for child and spousal support, even if the parties agree to pay freely. Administrative pay garnishments can also be used to recover overdue taxes and federal student loans.
Your Options in the Case of a Wage Garnishment
You may be wondering if you should employ an attorney, contest the income garnishment on your own, do nothing, or take alternative action if you’re facing or have already received a paycheck garnishment. Several criteria determine whether you should handle the garnishment in another way or by hiring an attorney, such as:
You are not in debt.
It is advisable to speak with an attorney if you have previously paid off the debt or if you never owed it. Depending on when the garnishment was initiated, you may have been legally required to pay the amount, according to a court or administrative agency ruling. This is why, after garnishment procedures have started, it might be difficult to prove you don’t owe money. You will undoubtedly require legal assistance in this particular case. A lawyer can help ensure that all legal criteria are fulfilled and that you collect the necessary proof to demonstrate that the debt is not owed.
There will be more legal fees than debt.
If the anticipated cost of legal representation exceeds the amount owed, hiring a lawyer may not be financially viable. If the cost of the attorney’s services exceeds the amount you would have to pay the debt, find out upfront. Additionally, a reputable lawyer will provide an honest response to that query.
The creditor is overcharging
The court or the organization handling the administrative wage garnishment will send you a packet of information when they notify you that a garnishment has been filed. A description of how much can be deducted from your paycheck each pay period should also be included in the documents. Federal law permits a creditor to garnish wages to satisfy a judgment, up to 25% of your income or the amount that your income exceeds thirty times the federal minimum hourly rate, whichever is lower. Certain states permit a lower amount.
You wish to negotiate a different payment plan with your creditor.
Creditors may occasionally be open to working with you if they suspect bankruptcy or difficulty garnishing your salary. A voluntary payment plan can help you avoid administrative salary garnishments or levies. You can usually bargain directly with the creditor. Speak with an attorney if you’re unable to or don’t want to do it alone.
Due to the garnishment, your employer is threatening to dismiss you
You should speak with an attorney right away if your employer threatens to fire you over the garnishment. Employers are not allowed to dismiss you for having your pay garnished.
By garnishing a bank account, the creditor is attempting to circumvent the wage exemption.
Your paychecks are deposited into a checking account, but that doesn’t mean the judgment creditor can take more from you than the law permits. There will be a space on the documents you get from the court for you to specify how much of your bank account is for payment. If you need assistance with the papers, speak with an attorney.
Can a Lawyer Stop a Garnishment?
Having a lawyer for wage garnishment on your side can help you stop garnishment more than trying to do this on your own.
Serving as Your Legal Representative
When you have a legal representative in court, you know that someone is looking out for you and trying to achieve the best result possible. With the use of your financial data, a lawyer can attempt to stop the garnishment against you and have the debt canceled, or they can arrange a debt settlement or repayment schedule.
Assessing Whether the Garnishment Is Legal
The law contains highly specific regulations for the collection of debts, including deadlines for collection, the amount that can also be garnished, and even the ability to add fees even after the debt has been settled. In addition to maybe being able to show that you are debt-free, an attorney can assist you in gathering proof to ascertain if the debt collection is lawful.
Assisting You in Filing an Exemption
A wage garnishment lawyer can assist you immediately in filing an exemption if you are unable to resolve your debt in court and a judgment is rendered against you. This stops the garnishment of some income, such as social security, retirement, or child support. Your attorney may also examine your financial records to ascertain whether you have available discretionary funds that may be garnished. Frequently, your real take-home salary is significantly higher than your disposable income. A knowledgeable attorney will investigate your options for reducing or removing the garnishment.
Bankruptcy filing
Your attorney can examine if filing for bankruptcy might be a more financially advantageous course of action if you are having trouble paying multiple creditors and they are threatening to sue you. While your attorney works to help you discharge your debts and get a fresh start, all wage garnishments must end immediately during Chapter 7 bankruptcy.
How Can I Stop a Wage Garnishment Immediately?
The most crucial thing you can do is to never disregard a wage garnishment order and to act immediately to stop it.
Here are four ways to stop wage garnishment immediately:
- Speak with the Creditor or Debt Collector to Work Out a Payment Schedule
- File a legal challenge to the wage garnishment
- File for Bankruptcy to End Wage Garnishment
- Seek Out Nonprofit Assistance
FAQs
What’s the maximum amount that can be garnished?
Title III restricts the amount of income that can be used to fulfill court-ordered alimony or child support. The law governing garnishments permits the garnishment of up to 50% or up to 60% of an employee’s disposable income for these purposes, depending on whether the employee is providing support for a spouse or child.
How can I stop a garnishment in Texas?
In Texas, declaring bankruptcy is your best option if you want to immediately end wage garnishment.
In Alabama, how can I stop a garnishment?
By submitting an exemption claim, you might be able to prevent it. This often works if your take-home salary is less than $1,000 per pay period. The judgment relates to a contract or debt.
How do I stop child support garnishment in California?
Complete form FL-450, Request for Hearing Regarding Earnings Assignment, and submit it. You can provide an explanation on the form for your decision to withhold the funds from your pay. The clerk will assign you a court date and send a copy to the other parent of your child after you file the form.
Wage Garnishment Lawyer: Conclusion
Finally, to find out if filing for bankruptcy would help you get back on your feet if you’re having financial difficulties, you might want to speak with an attorney. Most garnishments will end instantly upon filing for bankruptcy. However, an income deduction for paying spousal or child support will still be allowed.
See a debt settlement lawyer if you require assistance in negotiating a payment plan with a creditor.
