Wage Garnishment

If you get behind on paying your bills, your creditors have a number of options in attempting to collect the debt you owe. One option is to go to court and get a judgment against you so that your wages can be garnished. A wage garnishment is an order from a court or a government agency that is sent to your employer. It requires your employer to withhold a certain amount of money from your paycheck and then send this money directly to your creditor. As a result of a wage garnishment, your paycheck will be somewhat smaller than it normally is and you will have less money for your other expenses. If you are in need of an employment lawyer because your wages are being garnished, it is important that you contact an experienced Los Angeles Wage Garnishment Lawyer who will review the specifics of your financial situation and explain to your options for managing your debt.

Just because you are behind in paying a bill does not mean that a creditor can simply call your employer and demand that your employer garnish your wages. There is a process that the creditor must go through first. The creditor must first go to court and obtain a judgment stating that you owe the creditor money. Realistically, most creditors will make every effort to use other means to collect the debt before resorting to going to court. For example, creditors will first often use an outside collection agency to collect the debt. They will also try to work out a payment arrangement that will allow you to make small payments to pay off the debt over a long period of time. A wage garnishment is usually the last resort.

There are, however, exceptions to the general rule that a creditor must go to court and get a judgment before garnishing the employee’s wages. The exceptions are:

• Unpaid income taxes
• Court ordered child support
• Child support arrears
• Defaulted student loans

While a creditor with a judgment against you has the right to garnish your wages, there are limits on the amount of your paycheck that the creditor can seize. A creditor cannot seize your entire paycheck leaving you with no money to purchase food and pay for other life necessities. Under California law, a creditor can only take the lesser of 25% of your disposable earnings or the amount by which your weekly disposable earnings exceed 40 times California’s hourly minimum wage. "Disposable earnings" are defined as the money that left over in your paycheck after your employer has made deductions required by law such as federal, state and local taxes, and social security.

If your wages are being garnished due to unpaid child support, up to 50-60% of your disposable earnings can be garnished. If you are in default on your student loans, a creditor can take up to 15% of your disposable earnings but cannot take more than 30 times the minimum wage

If your wages are being garnished, that means that a creditor has obtained a judgment against you. You can challenge the Earnings Withholding Order by going to court and challenging the judgment. Common objections include that the debt has been paid, the amount being garnished is too much, or that the creditor did not follow the proper procedures in obtaining the judgment.

Another way to stop the garnishment is to contact the creditor and work out an agreement to pay off the debt that does not involve wage garnishment. It is import to understand that an Earnings Withholding Order is a court order that an employer is legally compelled to follow. Thus, if you work out an arrangement with your creditor, it is important to keep in touch with the creditor to make sure that they comply with the terms of the new arrangement.

Having your wage garnished will have a negative impact on your financial situation and the financial stability of your family. Furthermore, if your wages are being garnished, there is a possibility that your creditors may also attempt to levy your bank account. However, there are ways to fight wage garnishment and other such collection attempts that an experienced Los Angeles Wage Garnishment Lawyer understands. The staff at VAKILI & LEUS, LLP has extensive experience helping clients avoid garnishments, eliminate debt and deal with other issues related to debt relief. Contact us at 1-855-52LA-LAW (1-855-525-2529) to schedule a free, no obligation consultation regarding your concerns related to your employment.