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CONTENT
Introduction
01. What’s going to happen
02. How much will you lose
03. When can it happen
04. What you can do to stop it
05. What you can do if it has started
06. What you can ado to prevent it
07. Where you can go for help
INTRODUCTION
Wage garnishment happens when you can no longer pay off your debt. If you’re getting behind on your payments, your creditors can move to have your wages garnished.
This doesn’t happen overnight, though. You will receive lawsuit summons. It’s important not to ignore them. Respond and give yourself the opportunity to fight back.
What’s going to happen
Before the wage garnishment process, your creditors will sue you in court. That’s going to get the legal ball rolling.
Once that happens, your creditor will only need to wait for a judgment against you for the medical debt can be obtained.
The garnishment will continue until your debt has been paid in full, which could leave you with very little to no wiggle room in your monthly cash flow.
What’s going to happen
You could end up with as much as 25 percent of your disposable income garnished, The Balanceconfirms.
That applies if your income doesn’t go beyond $290 per week.
Any amount greater than 30 times the federal minimum wage, though, is set at $217.50 per week.
If you want to do the math, subtract any legally required deductions from your gross income, which can include federal, state, and local taxes.
Unemployment insurance, state retirement systems, and social security deductions may be included as well.
Your disposable income is the amount you get after all those deductions have been applied.
What’s going to happen
Your creditor must get a money judgment before s/he can sue you in court. Two things can happen after that.
FIRST SCENARIO SECOND SCENARIO
Your creditor will win, which means your wages will be garnished.
Your creditor will receive a default judgment, which is what happens if you don’t send any response and choose to ignore the lawsuit.
A third scenario can happen, though. Your creditors can garnish your wages without obtaining a money judgment against you. If that happens, know your rights.
Consult with a lawyer about your case and ask about the best legal recourse you can take.
What you can do to stop it?
If your creditor has obtained a judgment against you, then you may lift the judgment by vacating it in court. The wage garnishment cannot continue after that.
Also, the judgment will disappear from your credit report. That’s a bit of good news for you. A smear on your credit record can make you a credit risk in the future.
If you find yourself applying for a mortgage or loan, banks could charge you higher interest rates or even refuse your application because of a bad record. That’s why clearing the judgment from your record is wise.
Start the process by filing court papers and appearing in court. While you can do this without a lawyer, having legal help around can help.
Remember that the wage garnishment is a result of your unpaid medical bills. If you’re still recovering from the medical crisis that sent you to the hospital, then you may find it physically, mentally, and emotionally taxing to handle all these on your own.
Get legal help to improve your odds of stopping the wage garnishment and to get the help you need. That way, you’ll have less stress to deal with.
What you can do if it has started
Do not panic.
You can still file court papers to vacate the judgment, even if part of your salary is already being funneled to your debtors.
If the judgment is vacated, the court will only need to order your creditors to return all the money that was garnished from your wages. This will hinge on whether you successfully file a motion to vacate judgment or not.
Talk to your lawyer and work together on listing specific reasons why the judgment must be invalidated. There are grounds for vacating a judgment that may apply in your case. Your lawyer will be the best of character to determine that.
Keep in mind, though, that the lawsuit isn’t going to go away because the judgment is vacated. However, this now gives you the time to file a response and work together with your lawyer to challenge the lawsuit in court.
What you can do to prevent it
Dealing with wage garnishment is taxing and difficult. Given the many problems that can happen, finding a way to prevent it in the first place is the best thing you can do.
Don’t disappear on your creditor. Stay in touch. Creditors typically use wage garnishment as a way to get as much money out of you when all other options have failed, Ebony says.
If you can stay on track of your payments, you can stop them from pursuing wage garnishment.
If you stop taking their calls or refuse to talk to them, though, that’s going to make them more likely to go after you. Get them off your back by showing them that you have every intention of paying back every cent you owe.
KEEP IN TOUCH
What you can do to prevent it
Don’t lose hope if the wage garnishment has been approved by the court. You can still file a claim of exemption. Get a lawyer to help you draft one that effectively communicates how the garnishment will affect your ability to pay for basic living costs. If you succeed in convincing the court that the garnishment will only make your financial situation worse than it already is, then they may stop the garnishment from happening. Another possibility is that they may reduce the amount that may be garnished from your wages. The last one may not be ideal, but it can help.
FILE AN APPEAL
Pay the full amount. You could raise some funds. Borrow from contacts. Find ways to come up with the full amount within ten days of the judgment. If you do, then the court will stop the garnishment process. Determine the details, including the judgment amount, before you move forward.
PAY THE FULL AMOUNT
What you can do to prevent it
If you’re behind on your payments and you see no way out, as you barely survive from paycheck to paycheck, then you can file for bankruptcy.
This must be your last resort, though.
Entertain this only when all other options have failed you. If you’re having a hard time keeping everything afloat and your creditors are taking steps to obtain a money judgment against you and pursue wage garnishment, then this legal option can save you.
FILE FOR BANKRUPTCY
What’s going to happen
Fight back.
Know your legal options.
Our team of lawyers at Van Horn Law Group has the experience, skill, and dedication to help you with your debt issues.
If you’re facing wage garnishment, act now. Call us at our Fort Lauderdale or West Palm Beach office. We are open seven days a week to serve your needs.
The sooner you make that call, the sooner we can help.
YES, I WANT A FREE
CASE EVALUATION
If you’re facing wage garnishment, act now. Call us at our Fort Lauderdale or West Palm Beach
office. We are open seven days a week to serve your needs. The sooner you make that call, the
sooner we can help.
