If You Leave a Job Do They Have to Refile With Your New Employer for a Wage Garnishment?

If you are experiencing a wage garnishment through your current employer and you are leaving your job, you may be wondering what happens with your wage garnishment order. Depending on the type of job you transition to and the laws in your state, a new wage garnishment order may be required.

Wage Garnishment

A garnishment occurs when a creditor to whom you owe money gets a court order to collect money to satisfy your debt. Typically, the creditor attempts to collect a debt by contacting you through mail or telephone. If you fail to respond, the creditor may file suit against you in court and win a judgment for the debt. A court judgment allows a creditor to assess a wage garnishment that requires your employer to deduct a portion of your paycheck to be sent to the creditor for payment of your debt.

Wage Garnishment Exemptions

There are certain instances where you may be exempt from having a wage garnishment enacted against you. If you currently receive public assistance, have filed bankruptcy or your current salary is below poverty level, you may be able to stop a wage garnishment by petitioning the court. According to the Neighborhood Economic Development Advocacy Program, you may be exempt from wage garnishment if your pay after taxes is less than $217.50 per week.

Employer-Specific Garnishments

When a creditor files for a wage garnishment, the wage garnishment order is written and served to the current employer on record for you, the debtor. Once you change jobs, a new wage garnishment order must be served to your new employer. While some creditors have limited resources to locate your employer if you frequently change jobs, other creditors such as the Internal Revenue Service continue to pursue you and your employer for payment.

Unemployment

Typically, a creditor is not permitted to garnish unemployment checks if you are laid off from your job. Severance pay or retirement pay is subject to garnishment, however. If you received a wage garnishment because you owe child support or spousal support, even unemployment checks are subject to garnishment.