Wage Garnishments Explained
Simply put, wage garnishment refers to the deduction of money from an employee’s salary or monetary compensation, often as a result of a court order. The deductions are primarily used to resolve any debts owed by the employee.
If you are subject to wage garnishment, it’s imperative that you understand your legal rights and how you can solve the debt situation. The good news is that the capable defense attorneys at Bartifay Law Offices are ready to help you lessen the financial downturns of a garnishment.
Top Reasons for Wage Garnishments
There are numerous reasons for wage garnishments. These include child support, student loans, back taxes or when they enter a court judgment against you.
Garnishments for Court Judgements
When a money judgment is made against you after losing a lawsuit, the person or entity that won can trigger a garnishment. Usually, this is done by them (the creditor) providing a copy of the court order to the local authorities who will then pass it on to your employer. Your employer will withhold a portion of your wages, then deduct and send it to the creditor. However, the employer must notify you before they begin the garnishment.
Garnishment for court judgment often has a limit of up to 25% on your disposable income. However, this can vary based on the state you live in – it does not exceed the 25% cap. Disposable income refers to the amount left after compulsory deductions.
The good thing about this option is, you can choose to protest by going to court and presenting evidence that will warrant an exemption. The judge can then end the garnishment or decide to leave it in place.
Student Loan Wage Garnishment
If you default on the student loan, you are liable to a 15% wage garnishment. Student loan wage garnishment is unlike other types of garnishments. Why? Because it does not require a court order or lawsuit. Before your wages can be garnished, you must be informed of how much you owe, get a copy of loan details, and a notification through writing on how to opt for a voluntary repayment schedule. This happens at least 30 days before the deduction begins.
Child Support and Alimony
Child support garnishment can be up to 50% of your disposable incomes if you are supporting a child and spouse who is not the subject of the court order. If you do not currently help your child or spouse, up to 60% of your disposable paychecks can be deducted. An additional 5% may also be taken away if you are more than 12 weeks in late payment of the child support. Once the court orders you to cater for child support, a copy of the court order is sent to your employer by the other parent. The employer will then notify you of the garnishment.
The IRS may also take a portion of your wages if you have back taxes. Just like in the above cases, they must first send a levy notification to your employer who will then pass a copy of the notice to you. The announcement also comes with a claim form that you are required to fill out and return.
Want to Object to a Wage Garnishment?
Are you wondering how to stop wage garnishment? There are several ways to go about it. You can file a dispute if you believe that you do not have any debt or the information is inaccurate. You can also contact your creditors and work out a deal with them. Regardless of your situation, Bartifay Law Offices is ready to help you mitigate the impact of the garnishment. Give us a call today.