Stop Garnishment Wage Garnishment Options. Debt Alternatives Bankruptcy Alternatives. Fair Debt Collection. Estate Planning Wills. Asset Protection. Power of Attorney. Resources Videos. Wage Garnishment. What is Wage Garnishment?
The creditor does not need to alert you in advance but must mail a copy to you. Once your employer has the wage garnishment they are required by law to withhold some of your money from your paycheck and send it on to the creditor. If your employer fails to do this then they can become liable for the debt to your creditor. A wage garnishment lasts for 90 days and can be renewed by the creditor multiple times until the entire debt you owe is satisfied.
A bank or credit union account garnishment starts when a Creditor delivers garnishment papers to your bank. Like a wage garnishment the creditor is NOT required to warn you in advance but must mail a copy to you.
Once your bank receives a garnishment they must immediately review their accounts and freeze your money. Some exceptions do exist for funds which are not allowed to be frozen — see above for a more detailed explanation. A bank or credit union account garnishment is only effective one time — on the day it is delivered to the bank. So if you deposit new money in that account the next day it is not subject to the garnishment.
However, there is no limit to the number of times a creditor can use a bank account garnishment to take your money. A wage or bank garnishment can be challenged under Oregon law.
When you receive your copy of the garnishment papers a creditor is required to give you a copy of the Oregon Challenge to Garnishment Form. If you feel you have a valid right to challenge the garnishment then you must promptly fill out the form and file it with the Court that issued the judgment or garnishment and send a copy to the creditor, employer or bank that received the garnishment.
Your garnished money will then be deposited with the Court who will hold on to the money until the Judge rules on your challenge. A hearing will be scheduled by the Court to hear your challenge and the legal basis for your argument.
The burden is upon you to establish the legal basis for the challenge. Unfortunately, you are almost never allowed to challenge the underlying debt. You can challenge the math of the employer, if they overpaid the creditor, or you can challenge the bank if you believe that the garnished funds were protected by law.
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We are funded by Harvard University, will never ask you for a credit card, and you can stop at any time. Free Articles. Bankruptcy Tool. Filing Guide. In a Nutshell Wage garnishment is a common problem for millions of Americans. Join Expert Community. Department of Labor. Fact Sheet Written By:. Attorney Andrea Wimmer Twitter LinkedIn Andrea practiced exclusively as a bankruptcy attorney in consumer Chapter 7 and Chapter 13 cases for more than 10 years before joining Upsolve, first as a contributing writer and editor and ultimately joining the team as Managing Editor.
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Chapter 11 Bankruptcy Reorganizing Your Debt? There are a number of things you can do that might prevent a creditor from garnishing your wages. Read on to learn about them. To learn about using bankruptcy to quickly stop wage garnishment, see Using Chapter 7 Bankruptcy to Stop Wage Garnishment.
Once a creditor has obtained a judgment against you, many states require that it send you one last warning letter before the garnishment begins. This is usually called a "demand letter. Many creditors prefer to get voluntary payments from debtors rather than deal with the cost and time-consuming paperwork involved with garnishments. Use this opportunity to negotiate a payment plan with the creditor before it begins the garnishment process.
Some states offer their own additional protections against garnishment. For instance, in Ohio, you can request that the court appoint a trustee. In a trusteeship, you make payments to the trustee, who will then distribute those payments to your other creditors. As long as you are in a trusteeship, a creditor cannot garnish your wages. In California, you can make a claim of exemption. You can reduce or eliminate the garnishment if you can show economic hardship and that your income is needed to support your family.
You should contact the clerk of your municipal or county court, or consult with a local attorney, to see what options are available in your state. A consumer credit counseling service CCS may be able to help you stop a garnishment. Not to be confused with debt repair companies, a CCS is a non-profit agency that can help you negotiate and reach an agreement with your creditors to pay them over time. If your creditors agree to participate in this group payment plan, then they cannot garnish you as long as you make your payments.
If you do nothing after receiving the demand letter, you will then likely receive from your employer copies of the garnishment order and notice of the garnishment. You should file any objections you have to the garnishment, in writing, with the court and and request a hearing. The garnishment papers might contain forms that you can fill in and request a hearing. If not, you'll have to complete and file something separately.
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