Multiple Garnishments

[freshstart36]

Lets say I owe 2 creditors and both of them have obtained judgements. I know in VA they can take 25% of your income after taxes are deducted. Can two creditors garnish you at the same time, let say one takes 25% and the other takes 25%, leaving you only half of your check left over? Are they able to do that or is it a total of 25% and the other one would just have to wait until the first one is done? I am talking about regular consumer debts, not taxes, support or any of that.

I hope I didn't make this question confusing. I guess the bottom line is will I always have at least 75% of my income, no matter how many creditors garnish me?

[BigJohn]

State dependent.

What State are you in.

[freshstart36]

Multiple Garnishments

I'm sorry I should have stated that. I am in Virginia.

[catleg]

Federal law is they can only get 25% combined, i.e. you get to keep 75%.
So typically state law says they get in line somehow. If you owe federal money, such as taxes or student loans they get priority.

Of course then they'll try to grab the 75% the day your paycheck hits your bank account, if they can, through a bank account garnishment.

[freshstart36]

Bank garnishment

But am I correct that if all of the money on deposit at the bank is from wages, they can still only take the 25% of those funds. So I believe I could fight that. I have proof that all the funds in my account are from wages.

Thanks again for everyone's help. This forum is great!!

[catleg]

Nope, unless it's something protected like social security, once it hits the bank it's fair game. You can argue to get it back, but at that point you're fighting for your own money back, not a sure thing, not a fun thing.

[treehugger1]

In many states, exempt money on deposit is still exempt. That doesn't mean they won't attempt to try anyway. If the levy hits the bank, the bank will most likely respond by giving them the money. Then, as mentioned by others, it will be your responsibility to file the appropriate paperwork with the court to get the funds returned to you. It is "fair game." However, if the funds are already after-garnishment then the seizure can be returned to you. But, I suspect this process can be very, very slow and it would be up to you to fight for your rights.

Open a new online account or some pre-paid debit account and have your exempt money put there. I have been down the road of garnishment. Once this happened, I immediately opened a prepaid account that clearly states the card is "not a bank account." Even though the 16 digit debit account seems to be tied to a routing number and bank account number at some out-of-state bank, my contract is ONLY with the prepaid card provider, as is whatever bank is holding the funds. I have no direct contract with any bank in terms of a checking or savings account. I have NO direct connection or contract with the bank, only the provider.

Just my take, and certainly not a legal opinion. However, I know who I signed a contract with, and it was definitely not any bank.

I think this entire issue is currently being explored in the halls of state and federal legislatures.

If you are worried, then either put your EXEMPT money in the mattress, or put it in disposable, or reloadable pre-paid cards. If the money is exempt from seizure, then you have no worries.

I've been reading about some of the new prepaid accounts that are tied to social security payments and it appears to me that these accounts also generally make the same assertion, "This card does not represent a bank account. This prepaid account does not constitute a checking, savings, or any interest-bearing account."

I have also had judgments posted against me with a court order simply stating that I am not allowed to make use of any NON-EXEMPT monies. I am not allowed to sell any NON-EXEMPT assets. I never have violated any of this. On the other hand, I have been very careful to protect all of my EXEMPT assets from possible illegal seizure. Note the emphasis on NON-EXEMPT and EXEMPT. This is important. In my state, one can do anything they want with exempt assets/wages.

It is a bit sick that this appears to be exactly what OJ Simpson chose to do after his civil suit. Nothing illegal about protecting EXEMPT assets. I think that most folks have no clue in this regard.

Again, just an opinion. LOL

[branainaz]

is this 25% of your gross earnings or 25% of your net earnings after emploee tax withholding?
example: 700 gross
50 federal income withholding
25 state income withholding
625 net after employee withholding subject to garnishment?

[freshstart36]

Net Earnings

is this 25% of your gross earnings or 25% of your net earnings after emploee tax withholding?
example: 700 gross
50 federal income withholding
25 state income withholding
625 net after employee withholding subject to garnishment?

They can take 25 % of your net earnings, which is what you have left after taxes but not after any volunary withholdings that you may have.

[branainaz]

perfect thanks.

[NHC]

Here in Colorado the maximum amount they can take is 25% of your take home pay...but, there cannot be two garnishements at the same time. Whoever got their papers in first, gets paid first and the second one gets to wait their turn.