Can a Collection Agency Collect From Your Paycheck Without Taking You to Court First?

A wage garnishment involves a creditor taking money directly out of your paycheck before you receive it from your employer. While this can be an intimidating thought for a debtor, a collection agency cannot garnish your wages without going through the court system. Understanding how this process works can help you avoid it.

Collection Actions

Before a wage garnishment is pursued, a collection agency will try to collect money from you. Once the debt is turned over to a collection agency, you will start to get phone calls and letters from the agency. This may go on for several weeks or months before anything else happens. After failed attempts to collect the debt, the collection agency can pursue further action.

Civil Court

After collection attempts are unsuccessful, a collection agency may then file a lawsuit against you in civil court. You will be served by your local civil court, and you will be required to appear on the court date. On the court date, the collection agency will prove that you owe the debt. At that point, the judge will typically issue a judgment in favor of the collection agency. Once you have a judgment against you, you usually have a certain amount of time to pay it.

Garnishment Order

After a judgment is issued against you, the collection agency will then need an order to garnish. This is also sometimes referred to as a writ of execution. The collection agency will have to apply for the order with the court. Once the order is received, the collection agency will take it to the local sheriff's office. The sheriff will then contact your employer and notify him of the garnishment. At that point, your employer will have to take out a certain percentage of your paycheck until the debt is paid.

Percentage of Check

The collection agency can only take a certain amount out of your paycheck. The federal maximum for wage garnishment is 25 percent of your pay. Each state also has rules that apply to this amount. In some cases, the state maximum is less than 25 percent. The collection agency will then only be able to take that amount from your check during each pay period.