When you owe a debt to someone, and you want the involvement of the court, then it orders the employers to cut out a certain amount and directly send to the person’s account whom you owe money out of the monthly or bi-monthly paycheck you receive. The payment is sent directly to the person so that you do not have a fall into the hassle of sending money every month. This involvement of court and the procedure is known as wage garnishment. There is no one standard amount sent, but it can vary according to the person’s debt and the paycheck after complete analysis by the bank. There are some limits legally which apply for the payments garnished until the debt paid off completely.
What are Wage Garnishments?
When you are not able to win the lawsuits, then the court orders for the deduction of the amount out of your paycheck when you receive the wages. The copy of the total debt and the wages sent to the court and the employer. When the payment gets deducted, then the employee is informed along with the creditor. You receive the entire information for the wage garnishment as it proceeds and until it reaches the account of the creditor. You or the creditor first have to get the court notice to proceed the wage garnishment unless no one can deduct the payment out of the wages. If you have a loan or you owe medical bills, then the companies are not able to garnish the wages automatically unless both parties have received a legal notice. When you do not pay the debt, the creditor needs to hire the attorney and win the case to start the process of wage garnishment.
The limit to take out of the wages set by the court is up to 25% of the total earnings per month. The garnishment payments depend on the state, so you have to check with the IRS before you proceed further. If you are not sure about the process, then you can always find a good tax preparer who knows all the information and will help you in getting done with the procedure. If there is no court order, then no one can fire you or talk to you to pay back the debt. Everyone has to go through the court proceedings and win it to get the money back legally.
The process of Wage Garnishment
When you have to proceed with the wage garnishment, you have to gather the information and facts of the debt and file the papers with the court. The court gives them a hearing date, and they have to be present at that day. You have to show the evidence papers, and on the other side, the payee has to show the pay stubs and other necessary expenses to win the case. If the payee can pay the garnishment with fulfilling all the necessary expenses, then the court’s final decision is in favor of the creditor.
There is wage garnishment available for the child’s support as well which the parent can file with the court and receive the court hearing. If the parents are separate and cannot support the child, then he/she can file the wage garnishment on the other parent to fulfill the monetary needs of the child. The wage gets deducted from the paycheck of the other parent, and it does not involve any alimony between the two parents. The limit to pay the child support is up to 50% of the total earnings paid for the child’s support purpose.
Prefer to talk to the professional to gain all the facts and information regarding the wage garnishment and if you are in the situation where you are not able to pay off the debt then instead of getting sued, prefer to talk to the tax preparer to find out the solution and slowly get rid of the debt which you have on you. So do not waste any time and get in contact with the professional to get the best help.
