Oftentimes in spite of having gone through the process of creditor negotiations, Nevada employees may be facing wage garnishment. Fortunately, though there are exceptions, many times a debtor may request a claim of exemption. These exemptions may exclude debt that is court ordered through a child support order, a spousal support order, a bankruptcy proceeding repayment plan, student loan default orders or back tax payments. However, other debt may be worked out through a creditor negotiation in certain circumstances.
Federal laws state that a certain percentage (75%) of a debtor's income must be excluded from wage garnishment orders. While these do exclude certain payments, Nevada laws are even more stringent than federal regulations. Nevada has the same 25% rule, however the maximum must be observed. For Nevada, this means that an employees disposable wages must exceed 30% of the federal minimum wage. Whichever of these amounts is greater is the amount that is allowed to be exempt from wage garnishment.
Like many other states, Nevada also has a statute of limitations on judgments and consumer debt collection. Nevada laws state that consumer debt "expires" if no payments have been made in 4 years. This means that a creditor must attempt to obtain a judgment through the court before this date. Similar limitations of 6 exist for written contracts, foreign judgments and domestic judgments.
While no consumer wants to have to face the need to file bankruptcy, if they are unable to successfully undertake creditor negotiations this may be one option that is open to them to stop wage garnishment. Federal and state laws may also allow for a debtor to file a claim of exemption. Debtors are strongly encouraged to protect themselves from wage garnishments by contacting a debt settlement attorney who can help make sure that the laws are applied correctly.