How to Respond to a Garnishment

A garnishment order allows a creditor to take money from your primary sources of income and bank accounts to satisfy a debt. The creditor must go to court and receive a money judgment against you to garnish your wages unless the creditor has special status, such as a child support agency. Federal law limits most wage garnishments to 25 percent of your income after taxes, but for items like owed child support, up to 60 percent of your net income may be taken.

Instructions

1

Contact the creditor garnishing your income. Verify the debt amount is correct. Ask about repayment options if you cannot pay in full; some creditors will cease garnishment if you make payment arrangements. Request the terms of the repayment plan be sent to you in writing, including the down payment, if any. Do not agree to a plan you cannot afford, as additional collection activities may result.

2

Write down your monthly income sources and expenses. Include all sources of income, such as wages and retirement pensions. Include all necessary expenses, such as housing, food and basic utilities. Gather proof for each item listed, such as pay stubs and bills.

3

Visit the court where the judgment you are being garnished for was issued. Ask the court clerk for an exemption petition. An exemption claim is used when you believe the money lost to the garnishment will deprive you of basic necessities. Fill out the petition in full, following all directions on the form, and submit the document to the court.

4

Attend your exemption hearing. Bring the items verifying your income and bills with you. Bring proof of any extenuating financial circumstances you are under, such as paying medical costs for a serious illness of yourself, your child or spouse.

5

File for bankruptcy if necessary. File the bankruptcy petition in your local federal district court. A bankruptcy filing grants you an automatic stay from creditor's actions, and the garnishment will cease the garnishment activity.