Questions about garnishing wages...

[momofmany]

Couple quick questions. If it comes down to a creditor getting a judgement against me for a credit card debt, since I am a stay at home mom and make no income, can they come after my husband's income with a judgement?

As far as the limits of garnishing, I found this, "WAGE GARNISHMENT EXEMPTION: 75% of earnings or amount equal to 40 times the federal minimum hourly wage, whichever is greater" The 75% of earnings makes sense, but the othe part confuses me a bit...say the minimum wage is $6.00 would that mean you could make up to $24.00/hour without them being able to garnish your wages?

Also, for my state, (MN), I found this, "Creditors also cannot take any of your wages for six (6) months after you have received public assistance based on need. This includes the Minnesota Family Investment Program (MFIP), Emergency Assistance (EA), Work First Program, Medical Assistance (MA), General Assistance (GA), General Assistance Medical Care (GAMC), Emergency General Assistance (EGA), Supplemental Security Income (SSI) and Energy Assistance (EA). "....does anyone know if it only counts if that is you personally that received public assistance, or if anyone in your immediate family receives public assistance...We have Medical Assistance for our youngest.

A little background in case it matters. We need to wait until the end of March 2008 to file Ch. 7 and so I'm concerned that some of the credit card companies could possibly file a judgment against us, so I'm trying to know as much as I can to be prepared.

Thanks, Sara

[HHM]

Probably not, unless it is a joint account. MN is not a community property state.

[keepmine]

While they can't garnish his check unless, it was a joint cc account they may well be able to levy a joint bank account. If you have a joint account, you need to withdraw from the account in the event of a lawsuit.

[HHM]

While they can't garnish his check unless, it was a joint cc account they may well be able to levy a joint bank account. If you have a joint account, you need to withdraw from the account in the event of a lawsuit.

Good point...garnishing wages is not a creditors only option for getting payment, they can levy your bank account, they could go after any non-exempt asset (but going after assets is rare in a standard consumer debt context).

But the two most common forms of forced collection is wage garnishment and bank account levy.

[momofmany]

So if it comes down to getting notice of a judgement, we should be cash only kind of people?? Thanks, Sara

[no_it_all]

say the minimum wage is $6.00 would that mean you could make up to $24.00/hour without them being able to garnish your wages?

No, it means 40 x the minimum wage ($6) is exempt. In other words, if you make minimum wage and don't work over 40 hours a week, all your wages ($240) are exempt from garnishment.

[no_it_all]

BTW, a judgment in Minnesota can last at least 10 years. During that period you will be charged about 7% interest on the judgment. They will eventually collect so it is best to petition the court to vacate the judgment after your BK is closed. Better yet, tell the creditor to don't bother, that you are going no asset Chpt 7 in several months and the debt will be discharged.