Stopping Wage Garnishment in Vermont

Like most other states, Vermont has stern wage garnishment rules.  This is true regardless of the type of judgment that is rendered against someone. In order for a judgment to allow wage garnishment, there are allowable limits as to how much of the wages be free. Here are some important facts that need to be adhered to:

• Wages for living expenses - an employee may provide a claim of exception to the court that demonstrates how much of their income is being used for living expenses.  This amount may be free from wage garnishment;
• Consumer debt exclusion - while the general rule is that 75% of wages are exempt from garnishment, if the judgment is for consumer debt, then 85% of the wages become exempt;
• Garnishment changes - if an employee changes jobs, the garnishment does not follow them. The debtor would have to request that the garnishment be placed on the new income.  The above exclusions would apply.

Exceptions to Garnishment

There are specific federal rules that allow certain entities to be excluded from these garnishment restrictions. Specifically, federal taxes that are owed and child support or alimony may fall under the wage garnishment exclusions.  There may be other debts that could be settled through creditor negotiations prior to a judgment being issued.

Understanding Federal laws

The federal laws (that may be less stringent than state laws) state that a wage earner cannot have his wages garnished unless his disposable income exceeds 30 times the federal minimum wage. This may help some who are facing potential garnishment.

Contacting a Debt Settlement Lawyer

In the event that a wage earner has been notified that a judgment has been placed against them that may result in a wage garnishment, they should contact a debt settlement attorney. While there are no guarantees, it is possible to have the amount of the wage garnishment reduced or have it eliminated entirely.  Debt settlement plans, filing bankruptcy and other options may be available if the right steps are taken.