Creditors often use wage garnishment as a final means to collect on an unpaid debt. The legal steps for creditor debt garnishments differ from those of federal and state agency debt. The exact procedures a creditor has to take before garnishing an individual's wages can vary by state laws.
Filing Suit
A creditor has to file a lawsuit against an individual before a wage garnishment can begin. The creditor often hires a lawyer in the individual's state to carry out the lawsuit. The lawyer will file a Request and Writ for Garnishment at a courthouse local to the individual. They will then hire a court process server or pay a fee to the local sheriff's department to serve the individual with the lawsuit paperwork.
Court Date
When filing the suit, the county clerk at the local courthouse assigns a court date, listing the creditor as the plaintiff and the individual as the defendant. If both parties fail to show up on the date of their trial, the judge will dismiss the case. If only the creditor shows up and the defendant does not, the judge will issue a default judgment in favor of the creditor. If both parties show up, the judge will listen to the merits of the case and then make a judgment.
Employer Answer
Once a judge rules in favor of the creditor, the creditor sends a packet of garnishment forms to the individual's employer. This packet includes an Affidavit and Order for Wage Garnishment, an Affidavit and Answer of Garnishee and a garnishment worksheet. The employer completes all the requested information, sends the packet back to the creditor and makes a copy to send to the individual.
Garnishment Termination
A garnishment terminates when the individual pays off the full balance of the debt plus any applicable fees. An individual can pay off the balance at any time before or after the garnishment begins. Typically, the individual would contact the lawyer representing the creditor to obtain a pay-off amount. Once the individual pays the debt, the lawyer files a satisfaction of judgment with the local court.
If the individual pays off the debt through wage garnishments, the creditor sends a notice of termination of garnishment to the employer and the employer stops garnishment withholdings.
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