Creditors, including credit card companies, can use garnishment as one way of collecting a debt from an Ohio debtor. In a garnishment, a debtor's employers and banks can be required to turn over his wages and funds to satisfy a debt. Ohio law provides certain protections for debtors, including exemptions and limits on assets that can be garnished.
Legal Hearing and Notice
Credit card companies cannot garnish assets without first winning a court judgment against the debtor. If a creditor does win its lawsuit against the debtor and the debtor does not voluntarily pay the debt, the creditor can file to garnish the debtor's wages and bank account. In the case of a wage garnishment, the creditor must send the debtor, via certified mail, a notice that it plans to file for garnishment of wages after 15 days have passed. The creditor does not have to mail a notice if it plans to garnish a debtor's bank account. Once appropriate notice is given and the 15-day period has passed, the creditor can then file a garnishment at its local county courthouse within the next 45 days.
Exempt Sources
Certain types of assets and income, such as workers' compensation, unemployment, disability, Social Security and welfare benefits, cannot be garnished in Ohio. A debtor has the responsibility to request a court hearing so that he can document that his income and assets are exempt from garnishment.
Wage Garnishments
Wage garnishments require an employer to turn over 25 percent of an employee's weekly earnings, after taxes, to the court until the debt is satisfied. The money turned over to the court is then given to the creditor. If a creditor fails to file for wage garnishment within the 45 days following the 15-day notification period, the creditor must send another 15-day notice to the debtor before filing for garnishment.
Non-wage Garnishments
In a non-wage garnishment, the creditor can ask the court to seize funds in a debtor's bank account. Ohio law does make $400 of bank funds exempt from garnishment, so all funds over and above $400, up to the amount of the debt, can be seized on behalf of a creditor.
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