Feeling helpless against wage garnishment? A good attorney can help

Disclaimer: We are not qualified legal or tax professionals and are not giving advice. Always speak with a qualified professional before making any legal or financial decisions.



Wage garnishment occurs when a court order allows a creditor to have money taken out of your paycheck to repay a debt. Creditors must have taken you to court and received a judgment. Your employer will be notified and must comply.

Federal and state agencies do not need a court order to have your wages garnished. These garnishments generally cover back taxes, child support, a federal student loan, and alimony.

Having money taken out of your paycheck can cause a lot of financial hardship. You can stop the garnishment, and a good wage garnishment attorney can help you.

Wage garnishment makes most people feel helpless, and your financial situation can turn dire. There is help available though! The solution is a find an attorney to help you protect your rights and stop the garnishment.

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Understanding your wage garnishment rights

Consumers are protected by the federal Consumer Credit Protection Act (CCPA). A state may add additional protections, except for wage garnishment by federal agencies.

The CCPA federal law offers the following protections against mandatory wage garnishment:

• Employees are protected against being discharged by their employers if ONE debt has caused garnishment of wages. There is no protection for two or more wage garnishment orders.
• If there is more than one wage garnishment, the priority is not determined by the CCPA. Other federal laws or state laws determine priority.
• The CCPA sets percentages controlling how much disposable earnings can be garnished. These can not be exceeded.
• The CCPA sets the maximum amount garnish-able in any workweek or pay period, except in garnishment for support, bankruptcy, or any state or federal tax. The maximum garnishment is the lesser of 25% of the employee’s disposable earnings, or disposable earnings are greater than 30 times the federal minimum wage.
• In the case of court orders for child support or alimony, garnishment laws state that up to 50% of a worker’s disposable earnings can be garnished if the worker is supporting another spouse or child, or up to 60% if the worker is not. Support payments more than 12 weeks late are subject to an additional 5% garnishment.
• For non-tax-related garnishments by the federal government, up to 15% of disposable earnings can be garnished. State law does not cover these federal repayments.

CCPA Definition of Earnings:

Earnings are defined as compensation paid or payable for personal services, including:

• wages
• salaries
• commissions
• bonuses
• periodic payments from a pension or retirement program
• payments from an employment-based disability plan
• tips claimed on federal taxes

Lump sum earnings where the employer makes a lump sum payment for the employee’s services include:

• commissions
• discretionary and nondiscretionary bonuses
• productivity or performance bonuses
• profit sharing
• referral and sign-on bonuses
• moving or relocation incentive payments
• attendance, safety, and cash service awards
• retroactive merit increases
• pay for working during a holiday
• workers’ compensation payments whether paid periodically or in a lump sum
• termination pay
• severance pay
• payments from insurance settlements

The CCPA’s garnishment limitations protect lump-sum payments in exchange for personal services rendered. Lump-sum payments not related to personal services rendered are not protected.

CCPA Limitations of Garnishments

The CCPA bases garnishment on your disposable income. Disposable income is defined as the amount left over after all your legally required deductions are made. The deductions include federal, state, and local taxes, employees’ share of Social Security, Medicare, and State Unemployment Insurance tax and withholdings for employee retirement systems required by law. Each state has its own exemptions, so consider a claim of exemption.

Deductions not required by law include voluntary wage assignments, union dues, health and life insurance, charitable contributions, savings bond purchases, retirement plan contributions not required by law, and payments to employers for payroll advances or merchandise purchases.

Consider a Wage Garnishment Attorney

As you can see by wading through all these regulations, hiring an attorney specializing in wage garnishment may be your best bet to protect your interests and help you identify any errors or illegal actions taken by the creditor or debt collector.

Negotiating with creditors

Most creditors have a legal team representing them. It is important that you have legal representation to help protect your rights.

Creditors and debt collectors can make mistakes, and an attorney can uncover those errors more quickly than you may be able to.

Negotiating a payment plan or debt settlement can keep you from entering the garnishment world. Most lawyers are experts at negotiation and may be able to help you get the best terms.

Filing an appeal to stop a wage garnishment

If you have had a garnishment order against you, you may be able to appeal it. A wage garnishment attorney can help you negotiate these different options and will know exactly what you need to prove your case.

Motion to Set Aside

If there is evidence that your garnishment was based on reasons like fraud, falsifying documents or evidence or providing false testimony, you can ask that the garnishment order be set aside. If the court agrees, you will have a hearing to address these concerns. This is probably a good time to have that legal representation we mentioned earlier.

Show Hardship

If you can show that the garnishment is causing severe financial hardship, the court may stop wage garnishment. However, you must show income and asset statements and all monthly expenses.

Excessive Garnishments

If the garnishment exceeds the CCPA limits, you can show the court that the garnishment exceeds 25 percent of your disposable wages or 30 times the minimum wage. You'll need paycheck stubs and bank statements. In these cases, the garnishment amount will be reduced, rather than vacated.

Non-seizable Assets

If protected income is making up part of the garnishment and you can prove it, the court may either change or vacate your judgment. You will need to file a claim of exemption.

Bankruptcy

Your final way to get a judgment vacated is the file bankruptcy. Be aware that not all judgments can be overturned by filing for bankruptcy. Before filing for bankruptcy, you should talk with a bankruptcy attorney. Learn more by reading about how bankruptcy works.

The Odds of Reversing a Garnishment

There are no statistics available that define if appealing your wage garnishment order will be stopped. However, if you can prove that the garnishment proceedings were wrong or are onerous, a wage garnishment attorney would be your best bet to stop wage garnishment.

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