When will a creditor even after obtaining judgment not be able to collect wage garnishments?

Question

When will a creditor even after obtaining judgment not be able to collect wage garnishments?

Answer

Just because a creditor has obtain a judgment against you, it doesn’t mean that you’re not eligible for a wage garnishment exemption. Typically, a wage garnishment is a result of a legal process where a creditor sues you and wins. Then the creditor send your employer a writ of garnishment. Your employ deducts up to 25 percent of your wages until the debt is satisfied.

A wage garnishment depends on disposable income. As of 2009, $7.25 per hour is the federal minimum wage. Thus, your disposable earnings must be greater than 30 times the federal minimum hourly wage, according to the U.S. Department of Labor (DOL). Therefore, your must have enough disposable income for the garnishment to start. If you don’t, you’re eligible for a wage garnishment exemption because there’s no disposable income for your employer to take.

However, there is a wage garnishment exemption if you already have another credit taking money to satisfy a debt. The 25 percent of your wages creditors are allowed to take is the total amount. This if one creditor takes the total amount, a new wage garnishment can’t begin.

If you’re eligible for a wage garnishment exemption, there is another way to stop a garnishment. For instance, you can file bankruptcy to stop a wage garnishment. Chapter 7 will wipe out unsecured debts. Chapter 13 allows you to repay unsecured and secured debts. So talk with a lawyer who specializes in wage garnishments. The lawyer will explain all you’re your wage garnishment exemption options.

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