Not receiving your full work pay due to a wage garnishment can create serious problems with your personal finances. You might not have enough cash to pay your bills and other living expenses, and garnishment can continue until a creditor receives full payment of a debt.
Definition of a Wage Garnishment
A wage garnishment involves a bill collector or creditor making contact with your employer, and the employer then withholding a percentage of your salary. This withholding occurs after your employer deducts state taxes, federal taxes and Social Security. Creditors can then garnish up to 25 percent of earnings, according to Bankrate.com writer Justin Harelik. A wage garnishment occurs due to nonpayment of a debt. The employer withholds the necessary funds, and these funds are then kept by a third party
How the Process Works
Fortunately for debtors, a creditor cannot contact an employer on his own to set up a wage garnishment. Wage garnishments are court-ordered, and only occur after a creditor acquires a judgment against a debtor. A creditor schedules a court hearing, and if the court finds a debtor liable for the debt, a judge orders a judgment. The debtor can either pay the debt owed or negotiate an installment plan, or risk the creditor returning to court to request a garnishment.
Notification
A creditor is obligated to notify a debtor of an authorized wage garnishment. This notification also includes information on specific income exempted from wage garnishment, such as worker's compensation payments and unemployment benefits. Once notified of an impending wage garnishment, a debtor can act quickly to stop the garnishment by contacting the creditor to make a payment, or appealing the ruling in court.
Stopping a Garnishment
Full repayment can effectively put an end to a wage garnishment. But if you don't have the cash, and you can't make a living due to the wage garnishment, you can appeal the decision and schedule another hearing to plead your case. Submit a "Claim of Exemption" form with the court, and then provide supporting evidence of financial hardship due to the wage garnishment. Convincing a judge to reverse or stop a garnishment will require providing income statements, along with a proof of how much you spend on housing, utilities, food, transportation costs and debt payments.
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