What does it mean when your earnings are garnished?
What does it mean when your earnings are garnished?
Wage garnishment
Wage garnishment is a legal procedure in which a person’s earnings are required by court order to be withheld by an employer for the payment of a debt such as child support.
What happens in the case of a garnishment summons?
In the case of a nonearnings garnishment, the garnishee must provide a written disclosure to the creditor within 20 days after service of the garnishment summons that identifies all indebtedness, money, or property that the garnishee owes to the debtor.
When do you get a garnishment on earnings?
In the case of garnishment on earnings, a garnishment summons applies to the current pay period when the summons is served and all future pay periods that conclude within 70 days after service of the garnishment summons.
Can a company serve as a garnishee on a judgement?
For example, if you have a judgment against a debtor, their employer can serve as the garnishee. This will allow you to use garnishment to divert a portion of the debtor’s pay-check to your own hands before the debtor is paid. At the end of a court hearing, you will receive a court judgment.
How much does it cost to renew a garnishee summons?
A $25.00 administration fee must be paid to the garnishee with the Garnishee Summons. In most cases, the Garnishee Summons is effective for two years. A Garnishee Summons can be renewed after it expires if necessary.
What happens if I get a wage garnishment summons?
Whenever a person is working for wages and they have an outstanding monetary judgment against them, there is always the risk and concern that a wage garnishment summons could be forthcoming. Judgment creditors and their lawyers have access to information which may alert them if and when you are gainfully employed.
How is an employer notified of a wage garnishment?
Employers are typically notified of a wage garnishment via a court order or IRS levy. They must comply with the garnishment request, and typically start withholding and remitting payment as soon as the order is received. IRS wage garnishment and levy paperwork will walk you through the steps of completing the wage garnishment.
What happens in the case of a nonearnings garnishment?
In the case of a nonearnings garnishment, the garnishee must provide a written disclosure to the creditor within 20 days after service of the garnishment summons that identifies all indebtedness, money, or property that the garnishee owes to the debtor. Special rules apply to a garnishment of “earnings.”
When do you get a garnishment for child support?
For example, if a debtor has disposable earnings of $600 per week, a garnishment would only apply to disposable earnings of $150 per week (25 percent of the disposable earnings, which is less than the federal minimum wage times 40 hours). Higher amounts are subject to garnishment if the judgment is for child support.