Saturday, June 12, 2004

Can a Creditor Garnish My Check Without Notice?

Wage garnishment is a legal action creditors may take against you if you fail to pay what you owe. Even though creditors have the right to seek payment via your wages, they have to follow a strict legal procedure to do it. This includes giving you proper notice about the wage garnishment.

Wage Garnishment Explained

    To understand the creditor's rights regarding garnishment, you first must understand the garnishment process. Garnishment begins when the creditor files a formal complaint against you in court to begin a lawsuit. The creditor is required by law to send you notice of this lawsuit so you have a chance to attend a hearing and defend yourself against the lawsuit if desired. The creditor also must notify you that it has received a judgment against you. Once the creditor has gone through the hearing process and received a judgment, the creditor can file a motion to garnish your wages in accordance with the terms of the judgment provided. The creditor then sends the garnishment order to the sheriff, who is required to give a copy at least to the employer. The creditor does not need to send you a copy of the garnishment order, but your employer is required to send you a notice that the sheriff served the garnishment order.

    Importantly, these protocols apply only to general consumer debt. If you are in default on a student loan from the U.S. Department of Education or owe significant taxes, your wages can be garnished without a court order, as explained by Barbara Repa of the Nolo website.

Due Process

    Even though creditors technically do not have to send you a copy of the formal garnishment order, they still have to follow due process, which means they have to get a judgment against you before they can get a garnishment order. You're usually entitled to notification of any lawsuits and judgments against you. If you can pay the creditor or set up a payment plan after you get the lawsuit and judgment notices, you may be able to void wage garnishment.

What to Do If No Notice Was Received

    If you did not receive notices about the lawsuit or judgment, the first step is to hire an attorney. Gather the evidence you have that due process was not followed. For instance, speak to the sheriff and get a written statement about whether the court requested a notice be delivered to you and if the delivery of such a notice is on record. Then go to the court and file whatever paperwork is necessary to contest the garnishment order, appearing with your attorney at any hearings. This may not stop your wages from being garnished as the matter is settled, but you may be able to get your wages back if you win your case.

Bottom Line

    You usually are entitled to notification of lawsuits and judgments that may result in wage garnishment, and your employer should send you a notice if the company served with a garnishment order so you can contest the order if desired. The creditor does not have to send you a copy of the garnishment order, as the employer is supposed to notify you about the garnishment. However, some will notify you as a courtesy. You may take legal action against creditors who do not follow proper wage garnishment procedure, but you must be able to prove the creditor did not follow protocol.

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