How to Get a Garnishment Reduced

A garnishment is a legal order that gives a debt collector the right to take your property or rights to property to fulfill a debt you owe. The Internal Revenue Service calls a garnishment a levy. A wage garnishment is one of the most common tools debt collectors use to recover debts. Federal law limits the amount an employer can withhold for a wage garnishment in a single pay period to 25 percent of disposable income. If the garnishment is causing you hardship, you can get the amount reduced.

Instructions

1

Establish hardship. To prove hardship, you must show that the garnishment is causing you financial duress and is preventing you from affording the basic necessities of life, such as food, rent/mortgage and utilities. Valid reasons include job loss, a medical condition that results in your inability to work or income reduction.

2

Submit a hardship claim for a garnishment that is not court-ordered. Legal entities, such as the IRS and the U.S. Department of Education, can garnish without a court order. Contact the agency for its procedures on filing the claim. The IRS, for example, requires you to submit your financial details via Form 433-F, Collection Information Statement; the U.S. Department of Education requires you to request a hearing with its Hearings Branch if a student loan garnishment would cause extreme financial stress.

3

Submit a hardship claim on a court-ordered garnishment. Court-ordered garnishments include those initiated by creditors for personal loans, as well as medical and credit card bills. Contact the court registry that issued the garnishment and schedule an appointment for a hearing. If you prove to the court that the garnishment is causing you -- and your family, if applicable -- financial hardship, the judge can order that you pay nothing for the time being or pay a reduced amount.