Garnishment is the process of freezing your financial accounts or legally seizing a portion of your wages to recover creditor debt or back taxes you owe. In California, creditors can petition the courts to garnishee up to 25 percent of your total income. Garnishment laws may differ in different counties, however, so it is a good idea to consult with your attorney if a creditor is threatening to garnishee your wages or other financial assets you own.
Garnishment Basics
For a creditor to garnishee your paycheck, it has to sue you in court and receive a legal judgment against you. This can happen if you fall behind in loan or credit card payments, child support, taxes or other debts you owe. If your wages are garnisheed, your employer will be required to deduct up to 25 percent of your paycheck to pay your creditors.
Employee Protection
When your wages are garnisheed, your employer will be made aware of the fact that you are in default with your creditors. In California, according to the Department of Industrial Relations, your employer cannot hold this against you and you cannot be discharged from your job just because of the garnishment.
Exemptions
Certain income is exempt from garnishment in all states, including California. In many cases, federal law protects Social Security benefits, Supplemental Security Income benefits, railroad retirement benefits and veteran's benefits. There are exceptions,however. Government and other protected benefits may be garnisheed if you owe child support, alimony and federal taxes.
Stopping a Garnishment Order
If you are being threatened with a garnishment order, there may be ways for you to stop it or at least delay it. According to Bankruptcylawfirms.com, if you are unable to pay off your debts or back taxes in full, you may be able to petition the court for a stay, which can protect you for up to 90 days. Additionally, you also have the right to challenge your creditor in court. Once you file a petition with the court, your wages and accounts cannot be garnisheed until your case is heard. There may be other ways to delay or stop a garnishment as well, so it is a good idea to consult with a lawyer about the specifics of your situation.
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