Creditors and Garnished Wages

If you are indebted to a certain person, you are obligated to pay him back. However, if another person owes you some money and you, yourself, are not paying your obligations, your debtor can gain possession of the money that should have gone to you. The intercepted money would be paid to the court instead to answer for your financial obligations to your creditor. This process is called garnishment. There are three parties to this process: the debtor, the creditor, and the third party in possession of the debtor's property, otherwise known as the garnishee. Whether you are a debtor finding your way through this process or a creditor seeking to satisfy your collectibles, here are some insights:

What a Debtor Should Expect

If you are experiencing difficulty in meeting your financial obligations, lawyer-author Sherrie Bennett said you may be on the brink of receiving a garnishment judgment against you by your creditor. This can seriously worsen your financial condition as your wages or property can be taken to pay for these debts. If you are a creditor, this is an effective measure for you. But if you are a debtor, garnishment can ravage your finances since what you ought to receive would proceed to the court instead.

 

 

What the Employer Should Do

An employer who receives a wage garnishment order for his employee must regularly withhold a certain amount from the employees' wages until the time the debt is fully paid. Under the Consumer Credit Protection Act, the employee is protected against discharge by the employer on account of the garnishment. However, if the employee is subjected to a subsequent or second garnishment, that fact does not prevent the employer from discharging such employee. According to the law, the employer must remit a part of the wage or salary of the employee to the court. The employee must still receive partial payment of wages. The law imposes the duty upon the employer to remit the right amount of money for the garnishment; otherwise, he shall be liable. A garnishment order is served to the employer every pay day.

What the Creditor Should Do

Garnishment is an effective way to collect if you are the creditor. However, before you can receive the garnished wages, you must go through the process first. Prior to filing, a creditor must have an exact claim as to how much money is owed him. Next, you must fill out the forms required by the court for garnishment proceedings. These forms are available in court. One of these forms is the request and writ of garnishment. After you have filed all the necessary documents and judgment has been rendered, you need to wait for twenty-one days until you can get a garnishment. Afterward, the court will issue a writ of garnishment to the employer or third person in possession of the debtor's money or property (garnishee). Even if the money has been deposited in court, you cannot get it until you obtain a court order or the consent of your debtor.

 

 

Wage Garnishment

Once a writ if garnishment is served upon the debtor's employer, the debtor is bound by law to deduct from the employee's wages the amount to be garnished. Normally, the garnishment order is served during the week of the payday. This order is served every payday. Garnishment of wages lasts as long as the debt is paid in full. By virtue of law, garnishment cannot reach 30% of the employee's wages.

States With Garnishment Proceedings

Almost every state has wage garnishment proceedings in their jurisdiction, except Pennsylvania, South Carolina, North Carolina, and Texas. As to garnishment for child support, tax arrears, and alimony, all states allow such proceedings.

Sites that Can Help

If you have more questions about garnishment, here is a list of agencies and departments that you can reach:

United States Courts
Administrative Office of the U.S. Courts
One Columbus Circle NE
Washington, D.C. 20544
Phone: (202) 502-2600

U.S. Department of Labor
Wage and Hour Division
Frances Perkins Building
200 Constitution Avenue, NW
Washington, DC 20210
Toll-Free: 1-866-4-USA-DOL

U.S. Department of Justice
950 Pennsylvania Avenue, NW
Washington, DC 20530-0001
Phone: 202-514-2000