Garnishment = confusing, help me clarify!!

[ELS212]

I don't get it - I read through a couple stickies and in one place it looks like they can just up and take your money after they get a judgment (for me, a summary judgment on a Cap1 credit card which was granted 10/7/10) and then I read something else that says they have to have a garnishment hearing first and file motions to garnish and all that. Which is it??

Can someone help me out here? My brain is completely fried.

I live in Georgia. I take home about $700 every two weeks. (Family of 4) We rent our house and own 2 crappy vehicles with no payments. (I really have nothing worth anything, you could take everything in my house for $1500 and still feel like you got suckered.) I make about twice minimum wage and work around 30 hours a week, sometimes a bit less. I have about $450 in my checking account which will be mostly gone by the end of next Friday when I get my next paycheck. Should I be worried about the money being gone suddenly?

I don't exactly understand the concept of "judgment proof" as it relates to someone who is working but only making enough to pay for the bare minimums like we do. My budget is tight as a guitar string but we're getting by while I'm in school, with brighter days to come.

[free2breathe]

Here is a link to some information about Georgia garnishments. http://law.onecle.com/georgia/18/18-4-20.html
Looks like this info was last modified in 2006, but I didn't see anything dated any later.

[ELS212]

free2breathe: THANK YOU for that link. From what I'm understanding it looks like they have to serve me a summons of garnishment and state how much they intend to garnish in total before they can actually do it, and also wait for my answer (30 to 45 days).

This is basically what I'm understanding:
1) Judgment A= decision on the case deciding if I owe the money
2) After Judgment A they have to file a summons of garnishment before they get the money
3) After I get the garnishment summons and answer it (at least 30 days), Judgment B is made to allow the garnishment
4) After Judgment B they can actually garnish wages and levy bank accounts

Hopefully that's correct. I read through the GA code and wages are not allowed to be garnished before a judgment is made so I have a little time.

[WhatMoney]

I think you are reading about wage garnishments with all the notices, etc. Usually there is no warning or notice if they are going to levy your bank account. You find out when your checks bounce or debit card doesn't work. The bank sends you a notice your account is frozen about 5 days later. There is only one judgment. Bank account garnishments can be done any time by the judgment holder, and they would never give you a warning or you would withdrawal all your money before the levy.

[jacko]

You're garnishment proof. If you are single and head of household, your first $1004 monthly net income(minus state/federal, SS and Medicare taxes) is exempt from garnishment. Since your total household size is 4, your net exemption increases to $2000 or so. I would check the IRS table for actual amount.

I would keep the checking account open for appearance sake, but drain to $40 if you can and open up a Wal-Mart Money Card which allows free direct deposit. You need to protect your cash.

I don't get it - I read through a couple stickies and in one place it looks like they can just up and take your money after they get a judgment (for me, a summary judgment on a Cap1 credit card which was granted 10/7/10) and then I read something else that says they have to have a garnishment hearing first and file motions to garnish and all that. Which is it??

Can someone help me out here? My brain is completely fried.

I live in Georgia. I take home about $700 every two weeks. (Family of 4) We rent our house and own 2 crappy vehicles with no payments. (I really have nothing worth anything, you could take everything in my house for $1500 and still feel like you got suckered.) I make about twice minimum wage and work around 30 hours a week, sometimes a bit less. I have about $450 in my checking account which will be mostly gone by the end of next Friday when I get my next paycheck. Should I be worried about the money being gone suddenly?

I don't exactly understand the concept of "judgment proof" as it relates to someone who is working but only making enough to pay for the bare minimums like we do. My budget is tight as a guitar string but we're getting by while I'm in school, with brighter days to come.

[ELS212]

Jacko, how do you know this?? I can't find anything about it. From what I have read, basically in GA (for my purposes anyway) the limit is 25% that they can take, which is the lesser amount for me (around $90). I am not single though - we are married, but I am the head of household/sole income earner at the moment.

[frogger]

I think you are reading about wage garnishments with all the notices, etc. Usually there is no warning or notice if they are going to levy your bank account. You find out when your checks bounce or debit card doesn't work. The bank sends you a notice your account is frozen about 5 days later. There is only one judgment. Bank account garnishments can be done any time by the judgment holder, and they would never give you a warning or you would withdrawal all your money before the levy.

Correct. They're going to sneak up on you before you can move the money. If/when your checking account gets garnished, checks bounce and debit cards are frozen. It can be a very bad situation for you.

[clevelandmom]

Els,

Get your money out of the bank as soon as you can. Stop direct deposits, have them send live checks instead. If you can, have your spouse(?) open an account in their name only. If they are going to garnish you through your employer, your employer needs to tell you first. I do believe you have the right to request a hearing to explain to the Judge why them taking 25% of your money will leave you destitute. If you have questions that you're not getting answers to, call a legal clinic that specializes in BK near you and ask them. In the meantime, protect every dime you have. Those blood suckers don't care about your circumstances. Best of luck!

[ELS212]

Thanks Clevelandmom!! I am about to do that actually. I appreciate your help!

[jacko]

Because its the law. They can only garnish up to 25% once the exemptions are factored in. The first $290 in weekly earnings for a single person is exempt from garnishment. You need to inform your employer that your family size is 4 and that you will exercise your family exemption from garnishment.

Jacko, how do you know this?? I can't find anything about it. From what I have read, basically in GA (for my purposes anyway) the limit is 25% that they can take, which is the lesser amount for me (around $90). I am not single though - we are married, but I am the head of household/sole income earner at the moment.

[WhatMoney]

Because its the law. They can only garnish up to 25% once the exemptions are factored in. The first $290 in weekly earnings for a single person is exempt from garnishment. You need to inform your employer that your family size is 4 and that you will exercise your family exemption from garnishment.

I think he wants a pointer to the "law". I can't find what you are talking about either.

His NET take-home pay after all deductions for family allowances is about $350/week he said. Georgia follows Federal law for wage garnishments, so anything above $217.50/week is subject to garnishment. He would be subject to wage garnishment according to the Federal rules:

http://www.dol.gov/whd/regs/compliance/whdfs30.pdf

And the Georgia civil rules for garnishment are here:

http://www.georgiacourts.org/council...rnishments.pdf

There is no mention of additional deductions in any of the above laws. I think you assumed his pay was gross, not net, and were figuring in the IRS tax deductions for dependents - but his take-home pay is what you get after all tax deductions, in which case he still has some wages subject to garnishment.

[ELS212]

I think he wants a pointer to the "law". I can't find what you are talking about either.


There is no mention of additional deductions in any of the above laws. I think you assumed his pay was gross, not net, and were figuring in the IRS tax deductions for dependents - but his take-home pay is what you get after all tax deductions, in which case he still has some wages subject to garnishment.

Right, except that it's "she." No offense taken. I appreciate your help & willingness to answer my questions so much!!

[chicagoannie]

I agree with the others - drain that account immediately and make other arrangements for your finances, especially if you have direct deposit. I have a friend filed Ch 7 and had a creditor (her former divorce attorney) hit her bank account for $10K! She had no warning - went to withdraw $20 and her account was negative $10,200! Even though the creditor was in the wrong (he was a real sneak) her bank account was tied up for over 30 days...her paycheck and child support monies were frozen, checks were bounced and it was a total nightmare for her. Even though she wasn't paying her bills anymore, she still had kids to feed!

In my case I had a judgment creditor garnish my wages - I was making very very little at the time and supporting 4 kids. 25% of my income got gone but I did receive warning in advance, of a sort. My employer emailed me a copy of the wage garnishment order before my check was decreased. I believe the courts do offer relief from wage garnishment but you have to file a motion and prove your low income and necessary expenses. I was a fool and did not try to do this...and ended up financially farther and farther in the hole. Interestingly, that creditor is now a part of my Ch 7 and will not receive a penny more from me.

[chicagoannie]

oops, I meant 15% of my gross income went to the garnishment!

[jacko]

Here is the IRS exemption table.

http://www.irs.gov/pub/irs-pdf/p1494.pdf

Her family size is 4, so no garnishment due to income amount. She needs to contact payroll debt to exercise her family exemption from garnishment.

I think he wants a pointer to the "law". I can't find what you are talking about either.

His NET take-home pay after all deductions for family allowances is about $350/week he said. Georgia follows Federal law for wage garnishments, so anything above $217.50/week is subject to garnishment. He would be subject to wage garnishment according to the Federal rules:

http://www.dol.gov/whd/regs/compliance/whdfs30.pdf

And the Georgia civil rules for garnishment are here:

http://www.georgiacourts.org/council...rnishments.pdf

There is no mention of additional deductions in any of the above laws. I think you assumed his pay was gross, not net, and were figuring in the IRS tax deductions for dependents - but his take-home pay is what you get after all tax deductions, in which case he still has some wages subject to garnishment.