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Wage Garnishment- How It Works And What Can You Do About It?

Wage garnishment occurs “When a court orders that your employer divert a portion of your paycheck to the creditor or person to whom you owe money”. Supporting child, dealing with consumer debts and student loans are common examples of wage garnishment. Your earnings will be seized until the debt is paid or resolved.

TYPES OF WAGE GARNISHMENT AND HOW IT HAPPENS

Wage garnishment is much more common that one might think it is. A report by ADP Research Institute found that 7% of the 13 million employees it assessed had their wages garnished in 2013. For workers aged between 35 to 44, the number was as high as 10.5%. The most important factors being child support, consumer debts and student loans, and also tax liens.

There are mainly two types of wage garnishment-

In wage garnishment, creditors can legally ask your employer to have your earnings to pay off your debts.

In non-wage garnishment, commonly referred to as a bank levy, creditors can take control of your bank account.

Wage garnishment attorneys are employed when a creditor sues a individual for nonpayment of a debt unjustly. A creditor can also sometimes force garnishment without initiating a court order, for example, if you have the obligation for a child support, back taxes or a balance on federal student loans.

The court can send notices to a person and his/her bank or employer, and the garnishment will begin in 5 to 30 business days, depending on the creditor and state. The garnishment continues until the debt (includes court fees and interest) is paid.

WHAT YOU CAN DO ABOUT WAGE GARNISHMENT

You have some rights in the wage garnishment process and how to stop wage garnishment, but in most states, it is your sole responsibility to be aware of the rights and exercise them as per your requirement.

You can file a dispute if the notice has inaccurate information or you believe you don’t owe the debt.

Some forms of income, such as Social Security and veterans benefits, are free from garnishment as income.

You cannot be fired for having a wage garnishment, however, you might lose this protection if you have more than a single garnishment.

Planning a budget and sticking to it can help you stay on top of your finances to avoid another garnishment. You can also take help from various attorneys specialized in wage garnishment from a host of online portals.


About This Author


Segal, Cohen & Landis, LLPSegal, Cohen & Landis, LLP
Joined: May 20th, 2019
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