What Is a Periodic Garnishment?

When you owe money to a creditor, it can use several strategies to collect the debt that you owe. One of these is a periodic garnishment. With a periodic garnishment, portions of payments that you receive, such as wages, can be taken by the creditor before they reach you.

Periodic Garnishment

A periodic garnishment is a process in which a creditor can take money out of your paycheck, rent payments or other income on a regular basis. If you refuse to make payments to retire the debt, the creditor can use this method to collect the money that it is owed. With this option, creditors can collect money that is owed even if you do not have any assets or cash to seize. This method pays the debt off over time.

Getting a Garnishment

When you owe money to a creditor, it cannot simply start garnishing your paycheck without approval. It must get permission from the court. This involves filing a lawsuit against you in civil court and getting a judgment. Once the judgment is obtained, the company can then get a writ of garnishment. This writ can then be enforced with the help of the local sheriff's office. The creditor can then set up the garnishment directly with your employer.

Maximum Garnishment

When you have a periodic garnishment used against you, the creditor cannot take your entire paycheck. The maximum amount that a creditor can take out of your paycheck is 25 percent according to federal laws. Each state also has its own rules in regards to how much of your pay can be garnished. In some cases, states limit the amount to less than 25 percent. This makes it so that you can still get some money from working to pay the bills.

Other Garnishment

Instead of a periodic garnishment, creditors can sometimes use nonperiodic garnishments to collect the money you owe. With a nonperiodic garnishment, creditors can take property from a creditor. For example, if you have a nonperiodic garnishment levied against you, the creditor can take money directly out of your bank account. The creditor may also be able to seize other assets that you have to pay off the debt. This option only can be used if you have assets to seize by the creditor.