I Received a Wage Garnishment Notice. What Should I Do?
If you’ve received a wage garnishment notice, it can be scary and overwhelming. Suddenly, a portion of your paycheck will be taken to pay off a debt – right at the time when you need every dollar.
As a bankruptcy lawyer, I understand how stressful this can be. I’ve helped thousands of people who’ve received a wage garnishment notice in Memphis. And I’m here to guide you through the steps you should take when you receive one.
By following these steps, you can take control of your situation and get on a path towards a stronger financial future.
Step 1: Understand the Notice
The first thing you can do is carefully read the wage garnishment notice. This document will tell you:
- Who is garnishing your wages (the creditor involved)
- How much money will be taken from your paycheck
- The total amount of debt you owe
- The legal judgment (court order) that allowed the garnishment
Understanding these details will help you know exactly what you’re dealing with and who you need to contact. If you have questions about the notice, we can help.
Step 2: Verify the Debt
Sometimes, mistakes happen. It’s important to verify the debt is actually yours and the amount is correct.
Check your records and credit report to make sure everything matches up. If you believe there’s an error, you have the right to dispute it.
To make a dispute, you can file a written objection, aka a “claim of exemption,” with the court. But bear in mind, these are only usually successful in extreme cases (for example, mistaken identity).
Step 3: Know Your Rights
You have rights when it comes to wage garnishment. For example, there are limits to how much of your paycheck can be garnished. Typically, creditors can’t take more than 25% of your disposable income or the amount by which your weekly income exceeds 30 times the federal minimum wage, whichever is less.
In addition, some types of income, like Social Security benefits, are usually protected from garnishment.
Step 4: Communicate with Your Employer
Your employer will be notified about the garnishment and is legally required to withhold the specified amount from your paycheck.
If you’re concerned about your work reputation because of the garnishment, it might help to talk to your employer’s payroll department to confirm they received the notice and understand the garnishment amount. This also shows them you’re handling the situation responsibly.
Remember when talking with your employer, they don’t have an option in this. So they aren’t trying to punish or judge you when they comply with the order.
Step 5: Consider Negotiating with the Creditor
Sometimes, creditors are willing to negotiate a repayment plan that’s more manageable for you. Contact the creditor directly to discuss your situation. You might be able to arrange a lower payment or a settlement.
Make sure to get any agreement in writing. And remember, even then, it might not be legally binding. If the creditor decides to change the agreement, you may end up back in the same situation as before.
Lastly: Take Action After a Wage Garnishment Notice
Most of America couldn’t live on just 3/4 of their regular pay. So no wonder a wage garnishment notice brings up a lot of fear and frustration. Just know, you don’t have to go it alone.
As a Memphis bankruptcy lawyer, I’m here to help you understand your options and find the best solution for your financial situation. And the conversation is free.
Filing for bankruptcy is the most fool-proof way to stop wage garnishment and help you get a fresh financial start. Chapter 7 bankruptcy discharges many types of debt, while Chapter 13 allows you to create a manageable repayment plan. But both put an immediate, court-ordered stop to wage garnishment.
If you’re struggling with wage garnishment and need help, contact me today for a free appointment.
Together, we can develop a plan to protect your income and get your finances back on track. Don’t wait—take control of your financial future now.