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This is what can happen if you are subject to wage garnishment
The news that a portion of your earnings is going to be garnished soon can be very disheartening. It’s natural to feel a range of emotions when you receive notice that someone is going to reach into your wallet and take your hard-earned money – especially when you may not have been expecting it.
Although they are required to give you notice, it can still feel intrusive. The thought of someone taking your money without your permission can be unsettling and leave you feeling like you are losing control.
At such a stressful time, it’s important to know that there are steps you can take to stop wage garnishment from happening.
Why Is This Happening?
If you owe money to someone and they take you to court, the judge may order what’s called a “Writ of Garnishment.” This means that the creditor can take a portion of your wages (up to 25%!) until the debt is paid off. So essentially, your creditor gets their hand in your wallet until the debt is gone.
This can be really tough if you’re already tight on money or are trying to save up for something big, like retirement or a family trip. And unfortunately, creditors don’t care about your current circumstances or whether you might be going through a tough time. But there are some things you can do to fight back and protect your money.
What Can I Do to Stop Garnishment?
There are a few things you can do to protect your wallet and fight back.
File Your Answer to Avoid Default Judgement
It is important to respond to a Writ of Garnishment in a timely manner. If you do not respond within the time frame specified in the Summons, the court may enter a Default Judgment. This means that the creditor or Plaintiff wins by default because you failed to respond. When you file an Answer, you are responding to the allegations that Plaintiff made in their filing. Some states, such as Virginia, allow you to file a Garnishee Answer, which is a form specifically for this issue.
If you don’t want your wages garnished, you need to file an Answer with the court. It’s not a complicated process, but it can be time-consuming if you do it on your own. Crixeo can help you generate and file your Answer quickly and easily.
File a Claim of Exemption to Stop Wage Garnishment
One of the most important things you can do to stop wage garnishment is to file a Claim of Exemption, or in some cases, this may be a Motion for Exemption. This step is crucial, so you must act quickly. Wage garnishment can happen very quickly, so it’s important to file the exemption form as soon as possible. In many states, you will only have 5-10 days to do so. Some courts will set a hearing date when they receive your exemption form, and others will ask you if you would like to request a hearing. In either case, the hearing may be an excellent opportunity for you to plead your case, so make sure you can appear that day.
There are a few different ways that you can stop a creditor from garnishing your wages. One way is to file a Claim of Exemption or Motion for Exemption. This is easy to do in some states, like Florida. All you need to do is complete a form with the relevant reasons why the court shouldn’t allow the creditor to garnish your wages. Filing a Claim of Exemption is a great way to stop Garnishment before it happens and enable you to get your voice heard. Here are a few common exemptions that you may fall under:
- Social Security Benefits
- Supplemental Security Benefits
- Public Assistance
- Worker’s Compensation
- Unemployment Compensation
- Veterans’ Benefits
- Disability Income
- Child Support
- Payments under retirement, pension, and annuity plans
- Alimony, support, or separate maintenance
If you were recently served papers informing you that your wages will be garnished, you may be feeling a mixture of shock and confusion. One of the first things you should do is read through all of the documents you received to see if any of them are a Claim of Exemption form. This form will allow you to exempt your wages from garnishment if you meet certain criteria.
If you did not receive a Claim of Exemption form or are unsure if you received one, you can contact the Clerk of Court or check the court’s website. In some cases, the form may also be available through your bank or employer. Once you have located the form, fill it out and return it to the court to stop the garnishment process.
Pay Off the Debt to Settle the Lawsuit
If your creditor is willing to work with you, there are a few options available to stop a wage garnishment. One option is to pay the debt off in full. If this is not feasible, your creditor may be willing to settle for a fraction of the initial debt owed. Another common option is to make consistent monthly payments until the debt is paid off entirely. Whatever you arrange, make sure it is in writing, and you do everything possible to ensure that the Garnishment will cease as a result.
Not Our Favorite Option: Filing for Bankruptcy
One way to prevent wage garnishment is by filing for bankruptcy. This may be a good option if you have a lot of debt and are struggling to make payments. However, it’s important to speak with a bankruptcy professional before taking this step, as there are different types of bankruptcy that may or may not apply to your situation. At Crixeo, we partner with debt collection attorneys who can help you determine whether bankruptcy is the right option for you.
One way to prevent wage garnishment is by filing for bankruptcy. This may be a good option if you have a lot of debt and are struggling to make payments. However, it’s important to speak with a bankruptcy professional before taking this step, as there are different types of bankruptcy that may or may not apply to your situation.
Feeling powerless because of wage garnishment? These tips might help you take back control and keep more money in your pocket for your personal goals.
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