Sometimes, you’ll see it coming and sometimes you won’t. It’s payday and either you’re being handed an old-fashioned pay check or you get an email notifying you of a direct deposit into your bank account. Either way, you do a double-take because your net pay after withholding is much less than usual.
There must be a mistake here, you think. Or you know exactly why: a creditor only recently obtained a money judgment against you for unpaid medical bills for an injury your spouse suffered last year with a massive premium you couldn’t afford to pay then or now. Continue reading
In many ways, North Carolina is just like any other state when it comes to wage garnishments. Delinquent federal and state taxes, ongoing and past due child support and alimony, and defaulted student loans – all can result in significant wage garnishments from debtor-employee paychecks. But for consumer loans and a few other debts, North Carolina is a debtor’s safe haven, so to speak. Continue reading
Recently, a reader sent me an email asking about an issue that she was having. She was having a problem with two separate garnishments breathing down her neck. Her question to me was, can a creditor garnish all of her wages using different methods–meaning can one creditor garnish her paycheck and another creditor garnish her remaining paycheck via bank garnishment/levy? Continue reading
Fallout from the rocky American economy of the last decade has done one thing if nothing else: created an unfathomable amount of past due and unpaid child and spousal support. The federal government estimates that American parents owe in excess of $100 billion in delinquent child support alone. Continue reading
Oregon offers an amazing array of affordable places to live, including beautiful scenery. But like every other state, the struggling economy of the last decade has taken its toll. Many Oregonians struggle with massive debt – a combination of taxes, support, student loans and consumer debts. Continue reading
I thought bankruptcy always discharged all of my debts?
WRONG. There are certain debts that cannot be discharged by bankruptcy. Generally speaking, these debts include: Continue reading
ABSOLUTELY. The days of bankruptcy drawing scorn and ridicule are over. Individuals and small companies in the hundreds of thousands have turned to bankruptcy in the last decade to discharge and manage debt. Your friends will actually talk to you after you’ve filed. Continue reading
An IRS wage levy or garnishment is no laughing matter. You’ll know it’s coming down when your employer tells you it’s received an administrative garnishment order from the IRS, to tap part of your wages. In short, that means you will not be receiving your entire pay check unless you take prompt and immediate steps. Continue reading
Can a creditor ever garnish my wages before obtaining a judgement against me?
YES. An aggressive creditor may seek a pre-judgment garnishment as soon as it files the complaint.
True, the pre-judgment garnishment remedy is not automatic. The creditor must prove certain elements to the satisfaction of the court, such as the specific monetary amount due, probability of success on the collection suit, and the likelihood you’ll have no assets left to garnish after the judgment is obtained, i.e., that it does not have an adequate legal remedy if it has to wait. Continue reading
Can a creditor garnish my wages in the state of Texas?
NO, not unless the debts are of a certain type. Unlike most other states, Texas protects its resident debtors from having their wages garnished for any consumer or commercial debt. It is one of only four such states in the US that does so. In fact, Texas has a state slogan that goes, “Like a whole other country”, and it can be said, this protection of debtors may be one of the perks of being Texan (I’m sure there are many proud Texans who would certainly agree with me!) Continue reading
Can joint accounts and shared assets be garnished?
Most people would react to this question in the same way: absolutely NOT. It would be totally unfair for a creditor of one person to garnish your wages or bank funds when you are not a co-signer on the debt. Your reaction would be even more vehement if you were not married to the debtor, or the creditor tried to garnish your separate account. You might think such an action would be unlawful everywhere, due to a sense of fundamental unfairness. Continue reading
When we think of wage garnishment, we normally won’t think of the garnishment order accumulating additional interest on top of the underlying debt, but that is what happens the longer we don’t settle the debt in full. This increasing interest is something you would NOT want to have added to your underlying debt, especially if you live in a state that allows awarding the creditor with a high interest rate in the double digit figures! Continue reading
The Internal Revenue Service (IRS) does initiate wage garnishment orders, but they always make sure to give advance notice beforehand. Of course, this form of wage garnishment is for long overdue and unpaid taxes. IRS wage garnishment can be quite a tedious affair to sort out. And when they do finally act, they don’t even have to drag you to court. Continue reading
The question of whether your job is safe, if you have been levied a court order to garnish your wages is generally, yes. As we described in a previous page, you don’t really need to worry about your employer terminating you just because you were given an order to have your wages garnished. Federal law protects you – to a certain extent. Continue reading
Our latest article goes into detail on wage assignments. Wage assignments are increasingly used in consumer contracts usually involving large transactions, and are often listed in the fine print to state the legal recourse or provisions of the creditor in the event that the buyer/debtor does not pay up the full amount. Continue reading