How to Stop a Judgment on Wage Garnishment

When an individual fails to pay a debt, the creditor can go to court and obtain a wage garnishment. The latter is a court-ordered document that the court sends to the employer, instructing it to withhold a certain portion of the debtor's pay to satisfy the debt. Notably, government institutions, such as the Department of Education and the Internal Revenue Service can garnish wages without a court order. But they must satisfy some legal requirements, such as sending the debtor a bill and garnishment notice. As the debtor, you can take certain actions to stop a wage garnishment.

Instructions

1

Contact the issuing institution and agree to an installment payment. The contact information for the institution is listed on the garnishment notice. Most institutions resort to a wage garnishment because the debtor made no effort to settle the debt. Therefore, they are usually willing to set you up on an installment agreement. This stops the wage garnishment and allows you to make your installment payments directly to the issuing institution.

2

File a hardship claim if you cannot afford the wage garnishment amount. If the latter is causing you undue hardship and it's difficult for you to afford the basic necessities of life (such as food and shelter), file a hardship claim with the issuing institution. For instance, for an IRS wage garnishment, you would complete and mail Form 433-F (Collection Information Statement) to the IRS. You would need to include your income and living expenses on the form. The institution can temporarily halt collection activity until you are in a better financial position.

3

File an answer or an appeal with the issuing institution. If the wage garnishment is court-ordered, it includes instructions on how to file an answer with the court. The answer gives you a chance to present your argument to the judge, such as your disagreement with the wage garnishment amount or its existence. File the appeal with the institution listed on the garnishment notice. For example, if you have objections to a federal student aid debt, you must complete the Administrative Wage Garnishment Hearing Form and mail it to the address stated on the form. Notably, you must file the answer or appeal within the time frame listed on the garnishment notice.

4

Pay off the debt in a complete one-time payment or let it run its course. If you make a lump-sum payoff, it stops the garnishment. Or, you can let the wage garnishment continue until the debt is paid off. You can also contact the issuing institution to see if it will accept a settlement amount. The latter allows you to make a lump sum payoff for less than what you really owe.