Stopping wage garnishment is difficult. Garnishment is a legal order allowing a creditor or debt collector to freely withdraw funds from a debtor's bank account or paycheck for an unpaid debt. The Internal Revenue Service and state tax collectors can also garnish bank accounts and paychecks. It is possible to dispute garnishment orders, but usually the garnishment continues while a court considers the dispute.
Process
Garnishment often occurs after a debt collector wins a lawsuit alleging that a borrower failed to pay a debt. Lawsuits are common in credit card debt, with debt collectors often winning default judgments when the debtor fails to show up in court or respond to the suit in writing. The judgment is a legal order requiring the debtor to pay a specific amount of money. If the debtor does not pay the judgment, the debt collector can request garnishment. State and federal tax collectors can garnish bank accounts or wages without a court hearing or judgment.
Effects
Banks and credit unions must comply with garnishment orders, and they do so by freezing the debtor's bank account without warning. Employers must also immediately comply with court orders for garnishment. Bank garnishment shuts off all access to the account holder, except for deposits. Wage garnishment forces employers to send a percentage of the employee's paychecks to the debt collector each payday.
Considerations
Debtors can challenge garnishment through the courts through an appeals process. The appeal must specifically challenge the garnishment order. A small claims dispute not directly related to the garnishment will not stop the garnishment.
Assistance
A consumer affairs attorney can file legal motions to end garnishment by filing documents called a Claim of Exemption form and a Petition for Appeal. A debtor can also file the forms, but an experienced attorney may provide the best chance for a successful outcome. The legal motions can lead to an end to the garnishment or a reduction in the amount garnished. However, the garnishment will continue until a judge in the case makes a ruling on the dispute. A debtor can dispute the garnishment by arguing that certain money in his bank account, such as Social Security payments, are exempt from garnishment or that the garnishment makes it impossible for the debtor to afford food and shelter.
Alternatives
Ending garnishment is also possible through direct negotiation with the party holding the garnishment order. The tax agency or debt collector may agree to lift the garnishment order if the debtor agrees to pay the amount due in full or commit to a payment plan or settlement agreement.
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