Failing to pay a debt as agreed typically results in collection actions by the creditor or debt collector, including collection letters and telephone calls. If you ignore your creditor and continue allowing your account to remain delinquent, the creditor may decide to sue you for the entire amount of the debt, plus interest, court costs and attorney fees. In Missouri, if a creditor obtains a judgment, it may garnish your wages.
Judgment Process
In most cases, a creditor cannot garnish your wages in Missouri without obtaining a judgment against you for a debt. A creditor obtains a judgment by filing a civil lawsuit against you with the county court and submitting proof to the court that you owe the debt. Unless you can show that you've already paid the debt, the court will enter a judgment in the creditor's favor. However, the Internal Revenue Service doesn't have to obtain a judgment before garnishing your wages for a past due tax liability.
Garnishment Process
After a creditor obtains a valid judgment against you in a Missouri court, it may apply to the court for a writ of garnishment. A writ of garnishment authorizes the creditor to contact your employer and demand that a portion of your wages be withheld and sent to the court for payment against your debt. A garnishment can last for 10 years or until the judgment is satisfied; however, a creditor may renew a judgment for an additional 10 years if necessary to continue garnishment.
Money Limitations
Missouri adheres to federal law regarding wage garnishments. If you make less than 30 times the federal hourly minimum wage per week, the creditor cannot take any of your wages. If you make more than this amount, the creditor can garnish up to 25 percent of your wages after taxes have been taken out. Missouri law places an additional restriction on garnishment -- if you support your household, garnishment is limited to 10 percent of your post-tax wages.
Other Exemptions
Several types of income are exempt from garnishment under Missouri and federal law. Missouri law exempts Social Security income from garnishment, even if the garnishment is for child support or a tax liability. Worker's compensation, unemployment benefits and veteran's benefits are also exempt. Missouri law also protects child support and alimony payments up to $750 per month. Retirement payments and pension garnishments are limited to amounts above what you need to support yourself. If you're a retired teacher, state or municipal employee, these payments are completely exempt.
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