Wage garnishments benefit creditors who wish to collect on an unpaid debt. Some debtors stop paying on loans or credit cards, which force creditors to take legal action in order to recover overdue funds. But while wage garnishments help creditors collect, there are limits to garnishing a debtor's wages.
What is Wage Garnishment?
Creditors who seek a wage garnishment approach the court in order to have a percentage of a debtor's income withheld from his check. If the court agrees to the wage garnishment, a sheriff approaches the debtor's employer with an order to garnish his check. By law, employers must adhere to these orders and withhold up to 25 percent of the debtor's disposable income. These funds pay down the outstanding balance, and the garnishment remains in place until satisfying the overdue balance.
Process
Creditors can approach the court at the initial hearing and request a wage garnishment. The process involves first suing the debtor in court for the balance and acquiring a judgment against the debtor. Only after a debtor doesn't pay a judgment can a creditor request a wage garnishment from the court -- usually after 30 days. A court hearing also provides debtors with the opportunity to challenge a lawsuit or dispute a debt. Failing to appear at a lawsuit hearing results in an automatic win for the creditor.
Limititations
While a creditor may have the legal right to garnish a debtor's check, the law protects the debtor, and only one company can garnish his check at a time. Exceptions to this rule include judgment orders for alimony or child support payments, wherein the debtor can have money withheld to pay these balances despite already paying another creditor through a garnishment. In addition, if the first creditor takes less than 25 percent of the debtor's disposable income, another company can possibly acquire a garnishment order from the courts.
Stopping a Garnishment
Creditors typically notify debtors of impending garnishment orders, and this notification usually gets a debtor's attention and can move him to pay a debt or at least work out some sort of payment plan with the creditor. Once a garnishment takes effect, withholdings continue until creditors receive all funds owed. However, creditors can stop garnishing wages if the debtor decides to repay the balance in full or establish other payment plans. Debtors can also file an appeal with the court to stop a garnishment if unable to afford basic living expenses after losing 25 percent of his income.
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