When a Creditor obtains a Court Order to withhold a portion of your paycheck, it is referred to as a Wage Garnishment. This court order will direct your employer to withhold a portion of your paycheck and directly send it to the Creditor until the money you owe them is completely paid off or otherwise resolved. The most common sources of wage garnishments are child support, consumer debts, and student loans. Being subject to a wage garnishment situation is especially troubling for someone who already has a limited budget or who is seriously struggling with their finances. Fortunately, there are solutions.
At Serrano, Farah Law, LP, our Attorneys for Wage Garnishments have successfully helped thousands of clients to resolve their garnishments and debt.
Our Attorneys are here to provide the legal help you need to bounce back on track with your financial future. You have rights, and our Attorneys know how to protect them. With over 15 years of experience at your side, you can resolve your wage garnishment and regain financial stability once more.
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What is Wage Garnishment?
Wage garnishment is a legal process that allows creditors to collect unpaid debts directly from a person’s paycheck. Once a court order is issued, a portion of the individual’s earnings is withheld by their employer and sent to the creditor until the debt is satisfied. While this tool is designed to help creditors recover what they are owed, it can create significant financial strain for individuals and families who are already struggling to make ends meet.
Common reasons for wage garnishment include unpaid credit card balances, medical bills, personal loans, and/or judgment collections. Although the law places limits on how much of a paycheck can be garnished, the impact is often immediate and stressful. Fortunately, individuals facing wage garnishment have rights and potential legal remedies—such as contesting the garnishment, negotiating with creditors, or pursuing debt relief options like bankruptcy.
How Does Wage Garnishment Occur?
Garnishment often happens when a creditor sues you for nonpayment of a debt and wins in court. However, there are instances where a creditor can also force garnishment without a court order. This generally occurs if you owe child support, back taxes, or a balance on federal student loans. The garnishment process is initiated by the court sending notices to you and your bank or employer, and the garnishment will begin in five to 30 business days. The timing will vary depending on the actions of your creditor and state. The garnishment shall continue until the debt, including court fees and interest, are paid off.
There are two types of garnishment:
- A wage garnishment is where your employer is legally required to withhold a specific portion of your debt and send it to your creditor until the debt is paid.
- In a non-wage garnishment (also referred to as a “bank levy”), a Creditor can legally collect money directly from your bank account to pay off your debts.
What Are Your Rights In The Wage Garnishment Process?
You have some legal rights in the wage garnishment process. In most states, it is your responsibility to be aware of those rights and to exercise them. The following are some of your rights:
- You must be legally notified of the Garnishment.
- You can file a dispute if there is inaccurate information on the notice provided or if you believe you do not owe the debt.
- Some forms of income are exempt from garnishment, such as Social Security and veterans benefits. However, once in your bank account they could be subject to seizure.
- You can not be fired from employment for having one (1) wage garnishment, but you’ll lose this protection if you incur more than one (1) garnishment.
You can also challenge the garnishment if you believe the judgment was made in error or if it’s causing undue harm to your finances. The best way to exercise your rights in the wage garnishment process is to seek professional legal help.
If you have received notice about a wage garnishment Order obtained against you or would like to learn more, contact our Attorneys to schedule a consultation.
