If you're unable to pay your debts on time, your creditors or collection agency may file a lawsuit and win a judgment against you. Then, if wage garnishment is legal in your state, creditor or collection agency (CA) may have the judgment enforced through a wage garnishment. A wage garnishment is where the creditor or CA contacts your employer and requires him to withhold up to 25% of your wages to satisfy the judgment, depending on your state's law.
How can you stop wage garnishment?
Once a wage garnishment order has been granted, it is difficult to reverse it, but not impossible. If you can't manage to pay your basic living expenses while your wages are garnished, then you should collect a "Claim of Exemption" form from your local courthouse and file it with the court that issued the garnishment order. You should also request a court hearing and object to the garnishment to explain your situation in detail. On the day of the hearing, you'll need to show documents regarding your income and expenses so you can convince the judge that the garnishment will adversely affect your financial situation.
If you don't contest or fail to contest the garnishment, you can either pay off the judgment amount in full or negotiate a reduced payment with the court. If your state's garnishment law imposes a lower garnishment amount, then the court will follow the state law when imposing a garnishment order.
While your wages are garnished to satisfy the judgment, a lien is placed on your assets and property and it'll remain until you pay off the judgment amount. If you sell your property, the sale proceeds will be applied first toward the judgment and then toward any other debt.
In some states like Michigan, a garnishment order expires after 3 months. Therefore, a creditor or collection agency needs to obtain a new order for garnishment 3 months after the first order has been issued. This gives you some more time to work out a payment plan with your creditors/CA or challenge the amount being garnished.
What's the best way to avoid garnishment?
If you think your creditor or collection agency is taking steps to have your wages garnished, the best way to avoid it is offer a payment plan you can afford.
The best way to avoid a wage garnishment that you can't afford, after you've been served, is to answer the complaint within your state's time limit and appear in court on the appointed day. This way you will be able to present your case to the judge before the judgment is issued. You will also be able to present the judge with a statement of your finances that will help the judge determine how much the creditor or collection agency may garnish.
You can also try to negotiate with the creditor or collection agency before judgment is granted and get them to agree to an installment plan. Dealing with the creditor, collection agency, and the court before the judgment is granted is easier and more cost efficient than attempting to appeal one.
What if the IRS files wage garnishment?
If the IRS has a wage garnishment order issued against you, contact them within 30 days of receiving the Notice of Intent to Levy, and come to an arrangement with them to prevent your wages being garnished. You can try for any of the options stated below to stop wage garnishment being enforced on you:
- Pay the debt in full: Here, you pay off the entire amount you owe including the interest and the penalties you've incurred. If you don't have enough funds, consider borrowing from your family or selling your assets to pay off your tax debt. If you don't find this option suitable, try settling your tax debt with the IRS.
- Offer in Compromise to settle taxes: Under this agreement, the IRS agrees to accept a payment less than what you owe on your taxes.
- Installment agreement: This is where you agree to pay off your tax debt in monthly installments over a 3 year period. If you owe $25,000 or less in taxes including your interest and penalties, you can apply for an installment agreement online. However, if your tax debt exceeds $25,000, you need to fill out a Collection Information Statement, Form 433F, and mail it to the address stated on your tax bill, along with the Request for Installment Agreement, Form 9465.
OIC & Judgement garnishment
if I negotiate an OIC with the IRS, am I protected from a judgement garnishment of my paycheck?
wGJImLnbihupwhG
To whom it may concern,I am wriintg in regards to a judgement that was placed against me back in December due to backpay from a rental matter it has been dealt with in town court and I have since then been evicted from where I had been currently residing for 4 years and have no longer been living there since then.I would like to set up and arrange some kind of payment option with your law firm to resolve and take care of this judgement against me as soon as possible so that both parties myself and the creditor I owe so that things may be resolved in a timely and good manner thank you.
challange of garnishment
if i don,t fill out a challange to garnishment can the credit card garnishing me take more than the 25 % of my wages or any thing they want my husband is disabled with 6 anyurisms and heart problems i am a diabetic we are both almost 72. i just found out my youngest daughter has cancer incurable.we get 2085 from social security combined. i work as a nurses aide and make around 35.000 before taxes we are in debt approx 30.000. to various creditors i have had excellent credit for 40 years now due to my husbands disabillites and my declining health and dealing with my daughters cancer i just cant do it any more. i have been served a garnishment from target and target has put a lien on my home which we are 4 years behind in property taxes and about to loose our home. we barely pay 1 ye3ar to try to keep the county from foreclosing on it. what should i do% thank you janet.
Never served notice, now trying to garnish my wages
I just received a called from collection agency stating they were about to serve me and my job papers to garnish my wage. When I stated I never received any notice, nor do I believe I owe this bill from 4 years ago, the CA gave me an old address that document sent to and stated he did not have any info besides a settlement amount. How do I go about stopping this garnishment since I was never properly served notice to go to court to dispute??
Personal Garnishment
hi,i have a personal garnishment on my bank account but dont want to file a chapter 7,what do i do because i have judgement after garnishment.
wage garnishment, on server pay
I received a letter to garnish my wages , I can ask for a hearing ,I have to write why I believe this payment is false, will this work? The college was shut down, the new school has no record nor does those class so I was unable and forced not to finsh. Its a 10 year loan for only 10000 but garnishment as a server will make me broke and I am already living poor. I am unclear of what to do
garnishment
My wages r being garnished by 2 different places for the same debt I work 2 jobs and both checks r being garnished.
Garnishment on my daughter
My daughter lived in an apartment for a few years with her then boyfriend and two others. They did not pay all the rent they owed and now she is being garnished but no one else. She is a single parent with 2 small children and is not receiving any child support. what can she do?? Thanks
Garishment
My husband's paycheck has been garnished for the last 3 months.
he still owes money but today when he got his paycheck it was the full amount, no garnishment. Why? we live in Washington State
reversing a garnishment
How do you get a garnishment reversed? Can the 60b rule be used? where do you file for either of the two?
Judgement against me to garnish wages
My employers received a summons to trustee to garnish my wages.st me. I have no idea who the collector is or what it is for. It contains my name and an address I have never lived at. I have never received anything to go to court regarding any type of debt. Is there anything I can do.
wage garnishment from Iowa, now living in Kansas
I was just notified that my wages are being garnished starting with tomorrow's paycheck. The garnishment will leave me unable to meet living expenses for rent, food, baby formula and diapers, child care, and my student loan payment. Originally the court order was filed in Iowa but I am now living in Kansas (same employer). Is there any way to file for an exemption and do I have to do that in Iowa or Kansas? Please help.
Wage Garnishment
Hi Carol.
I have a wage garnisment but I am not able to pay the full amount asked each week. I am currently in danger of a foreclosure because my mortgage is 3 months behind. Will the judge take this into consideration when I go to court to ask for a modification? Any help you can give is greatly appreciated.
Thank you
Camille Lee
Wage Garnished reversed
How or where do I go about to get the legal paper work for this matter and can I do it without the help of a attorney?
Because I can't afford it. And it's more than 25%.. I have a child to support and can't choose between food or rent..
I was garnished and can't find the agency and there is no record. My credit is not updated and can't do it. help
Garnishment
I've been making payments as such and creditor sent paperwork to have my wages garnished. What are my op3
is it possible to negotiate after been garnished
Couid I negotiate myself or I need to get a lawyer
wage garnishment
i was just placed on wage garnishment on a student loan in the state of PA. how can i reverse it and does it expire like in other states after 3 months.
Garnishment order
I received a garnishment order in the mail yesterday. Its from a credit card debit from more than 15 years ago. (the stated date is March 18, 2004.
Is it possible for them to do this with the statute of Limitations on Debt collections in Kansas. I thought it was 7 years???
Please help