If you have received wage garnishment due to a judgment issued on your unpaid credit cards or other personal loans, it may be possible to stop it.
But, you need to know your rights.
Certain types of income are exempt from wage garnishment:
- Social Securtiy
- SSS or Supplemental Security Income
- Veteran's benefits
- Civil Service and Federal Retirment and Disability Benefits
- Military Annuities and Survivor's benefits
- Merchant Seamen Wages
- Longshoremen's and Harbor Worker's Death and Disablity benefits
- Compensation for Injury, Death, or Detention of Employees of U.S. Contactors outside the U.S.
- FEMA (Federal Emergency Management Agency) benefits
Also exempt from wage garnishment:
- Retirement income (pension and personal retirement plans)
- Public Employee Retirement System (PERS) benefits
- Income you may be receiving from a Reverse Mortgage
- W-2 Income that is less than $936 net after tax per month( your state's exempt amount )
But, you also need to be aware that these incomes MAY NOT BE PROTECTED from:
- Delinquent Federal and/or State taxes
- Federal Student Loans
- Child Support
If you receive a notice of garnishment, you should immediately contact the attorney representing the plantiff (creditor).
Your employer cannot do anything for you. In fact, your employer must fulfill the writ of garnishment or could be subject to a hefty fine!
In most cases, the attorney for the plaintiff will agree to a reasonable repayment plan instead of enforcing the garnishment.
But I said REASONABLE!
If the garnisment is going to be 25% of your net income (most states), and that comes to $500 per month, they are not going to agree to a $100 a month!
But, they may be open to say, $250-$350 for a STIPULATED AGREEMENT (SA).
You may also be able to settle the amount you owe for less than the full balance. If you have any funds available, make an offer of approximately 50% fo the balance.
Since the judgment has been entered, and the writ of garnishment has been presented to your employer, the creditor will not be as willing to discount the balance as in a normal DEBT SETTLEMENT AGREEMENT.
If this sounds like too much for you to deal with us, please contact us.