Having a judgment entered against you and being subject to the possibility of wage garnishment is an unpleasant experience. Knowledge regarding how the process works and the limits on the actions a creditor can take is the best way to protect yourself. Federal and state law set forth certain guidelines and rules that judgment creditors and even your employer must follow. Be aware that each state has its own laws regarding the process by which judgments and garnishments are obtained.
Judgment Basics
A judgment is a courts' final decision in a civil or criminal case. More often than not wage garnishments stem from civil cases. A judgment debtor is the individual that the court ordered to pay money and a judgment creditor is the person awarded the money. Whenever money damages are part of a court's order, the person awarded damages will be able to collect upon them in a variety of ways. A judgment creditor can collect the money by the seizure of personal property or assets, the filing of a judgment lien against a debtor's real property, and / or wage / income garnishment.
Wage Garnishments
In a number of jurisdictions, a wage garnishment is the quickest way for a judgment creditor to collect on the monies owed to them. A wage garnishment means that a certain amount is deducted from a debtor's weekly disposable earnings to repay the debt. Disposable earnings is the amount of money an individual is paid after federal deductions from their gross wages. Each state has its own laws regarding exemption and its own procedures for obtaining garnishments. Some states require the filing of debtor collection suits before wages can be garnished, others will require filing certain documents with the county Sherriff's office. Only a person's disposable earnings are subject to garnishment.
Exemptions
Federal law dictates the amount of income exempt from garnishment. States can provide debtors with increased income exemption amounts but cannot exempt less than the federal guidelines. Under federal law, 75 percent of an individual's weekly wages or the amount that an individual's earnings exceeds thirty times the Federal minimum wage are exempt from garnishment. The federal law exemption amount is only 50 percent in cases of child support, alimony and any other support order that is established by state law and the person to be garnished was afforded due process and the opportunity to appeal the court's order. Also, garnishment exemptions are not applicable to state or federal law, tax debt, or bankruptcy payments.
Debtor Protections
There are certain laws to protect debtors in wage garnishment situations. First, you cannot be fired because your employer has received a wage garnishment. Next, certain sources of income are 100% exempt from garnishment including student loans, social security, and other governmental benefits, pensions, and retirement benefits. In addition, depending on the laws of your state, the entire amount of your wages could be exempt from garnishment if you file as head of household on your taxes.
Article Source: http://EzineArticles.com/?expert=Leonard_R_Gendelberg
Article Source: http://EzineArticles.com/7741371
Judgment Basics
A judgment is a courts' final decision in a civil or criminal case. More often than not wage garnishments stem from civil cases. A judgment debtor is the individual that the court ordered to pay money and a judgment creditor is the person awarded the money. Whenever money damages are part of a court's order, the person awarded damages will be able to collect upon them in a variety of ways. A judgment creditor can collect the money by the seizure of personal property or assets, the filing of a judgment lien against a debtor's real property, and / or wage / income garnishment.
Wage Garnishments
In a number of jurisdictions, a wage garnishment is the quickest way for a judgment creditor to collect on the monies owed to them. A wage garnishment means that a certain amount is deducted from a debtor's weekly disposable earnings to repay the debt. Disposable earnings is the amount of money an individual is paid after federal deductions from their gross wages. Each state has its own laws regarding exemption and its own procedures for obtaining garnishments. Some states require the filing of debtor collection suits before wages can be garnished, others will require filing certain documents with the county Sherriff's office. Only a person's disposable earnings are subject to garnishment.
Exemptions
Federal law dictates the amount of income exempt from garnishment. States can provide debtors with increased income exemption amounts but cannot exempt less than the federal guidelines. Under federal law, 75 percent of an individual's weekly wages or the amount that an individual's earnings exceeds thirty times the Federal minimum wage are exempt from garnishment. The federal law exemption amount is only 50 percent in cases of child support, alimony and any other support order that is established by state law and the person to be garnished was afforded due process and the opportunity to appeal the court's order. Also, garnishment exemptions are not applicable to state or federal law, tax debt, or bankruptcy payments.
Debtor Protections
There are certain laws to protect debtors in wage garnishment situations. First, you cannot be fired because your employer has received a wage garnishment. Next, certain sources of income are 100% exempt from garnishment including student loans, social security, and other governmental benefits, pensions, and retirement benefits. In addition, depending on the laws of your state, the entire amount of your wages could be exempt from garnishment if you file as head of household on your taxes.
Article Source: http://EzineArticles.com/?expert=Leonard_R_Gendelberg
Article Source: http://EzineArticles.com/7741371
No comments:
Post a Comment