A wage garnishment will allow a creditor or debt collector to take a percentage of your bank account, wages, or other finances. Entities can only garnish your wages after they have successfully obtained a court order to do it. Once they have obtained an order, they will then call your employer and tell them to withhold a portion of your paycheck and forward it to them.
Wage garnishments are particularly harmful to borrowers. A writ of garnishment operates on a continual basis. This means that just one garnishment can remain in place for years until the debt is fully paid off. If you are facing wage garnishment, it is important to know that you have legal options. Our Broward County debt defense lawyer explains below how you may be able to stop it.
How Long Does a Creditor Have to Garnish Wages?
Under state law, creditors have as many as 20 years to act on the judgment. This is known as the statute of limitations, or time limit. The time limit to collect on judgments is much longer than the statute of limitations placed on debt. In Florida, creditors and debt collectors have only five years to take legal action on a debt. So, while a creditor or debt collector must file a lawsuit against you to obtain a wage garnishment within five years of your last payment, they have up to 20 years to actually garnish your wages.
When Does a Wage Garnishment Start?
Procedures for wage garnishments are vastly different from other legal proceedings surrounding debt, such as foreclosures. With a foreclosure, you likely still have at least a few months in your home before you have to vacate it, if that becomes necessary at all. With a wage garnishment though, creditors and debt collectors can usually start seizing your wages just days after they obtain a judgment against you. There are ways to stop wages garnishment though, so it is critical that you speak to a Broward County debt defense lawyer immediately after learning of a garnishment against you.
Using the Household Exemption
According to the Florida Statutes, you can stop a wage garnishment if you can claim that you are the head of your household. You are considered to be the head of household if you can show that you contribute to a minimum of 50 percent of a dependent’s living expenses. Children are clearly dependents, but there are others that may be considered a dependent, as well. A dependent could be a parent or other relative that requires ongoing care, or even a former spouse to whom you pay alimony. The head of household exemption will not apply to tax refunds, as those are not classified as wages.
Other Exemptions in Wage Garnishment Cases
The head of household exemption is available in many wage garnishment cases, but it is just one. Certain types of income are also exempt from being garnished and these are as follows:
- Welfare
- Social Security benefits
- Workers’ compensation
- Pensions
- Veteran’s benefits
- Disability benefits
- Life insurance benefits
You may also be able to file a lawsuit to have the judgment vacated. Vacating the judgment will render the court order allowing the garnishment null and void. It is not always possible to vacate a wage garnishment order and success is largely dependent on the facts in your case.
Federal Caps Placed on Wage Garnishments
Under federal law, creditors and debt collectors cannot garnish your wages in any amount that exceeds 25 percent of your disposable income. You do not have to be eligible for the head of household exemption to be protected under this law. The law also applies to all wage garnishments, not just one. So, even if multiple creditors and borrowers have obtained wage garnishments against you, the total amount of all of them cannot exceed more than 25 percent of your disposable income. However, there is an exception to this.
If your disposable income is greater than 30 times the federal minimum weekly wage, a garnishment can exceed 25 percent of your disposable income. The garnishment can then seize either 25 percent of your disposable income or 20 times the federal minimum weekly wage, whichever amount is lower.
The Wage Garnishment Procedure in Broward County
When a debt collector pursues a wage garnishment judgment, the clerk of the court is required to send you a notice informing you of the garnishment. This notice must tell you that a creditor or debt collector is seeking a wage garnishment, and inform you of your protection under an exemption. You must file any exemptions you qualify for within 20 days of the date you received the notice. The creditor or debt collector must also send you written notice of the garnishment. They must send this notice within five business days of the writ of garnishment being issued, and they must send it by first class mail.
If you file an exemption and ask for a hearing, the creditor is served with a copy of the exemption. They then have 14 days from the day of service to file a written statement that replies to your exemption. The exemption you filed as well as your request for a hearing will be delivered to the creditor and they will only have eight business days to reply. If the creditor does not respond to your claim of exemption within the appropriate amount of time, the court will automatically void the garnishment. You will not have to attend a hearing to cancel the garnishment.
The Garnishment is Incorrect
If you believe the wage garnishment is a mistake, you can contest the judgment. It is crucial that you work with a Broward County debt defense lawyer who can advise on the best way to move forward. A garnishment may be incorrect if it was included in discharged debt in a previous bankruptcy, if you never owed the debt in the first place, or if you have already paid the debt.
Call Our Debt Defense Lawyer in Broward County Today
If a creditor is threatening you with wage garnishment, contact us at Loan Lawyers to speak with a knowledgeable Broward County debt defense attorney. We will always review your case for free and ensure your rights are protected throughout every step of your case. Call us today at (954) 523-4357 or contact us online.
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Loan Lawyers is made up of experienced consumer rights attorneys who use every available resource to develop comprehensive debt solution strategies. Our goal is to take on those burdens, resolve those problems, and allow our clients to sleep soundly knowing they are on the path to a better future.
