Unemployment and Garnishments

[spearmint]

It looks as if I might lose my job over the next few months and now I am so confused as to what to do about filing Ch13. I need to file to stop my wages being garnished by the state, but then if I lose my job what can they garnish?

If I am not working, what can the state do to me to collect if they have nothing to garnish?

I read in another thread, too, that there are such things as non-garnishing states, i.e. other states that don't allow wage garnishments. I've been considering moving to another state for a while now because employment prospects here are dreadful. What would happen to a possible wage garnishment from the state I am in now if I were to move to a non-garnishing state?

[queenbee]

your state can still garnish no matter where you live...and they can garnish unemployment depending on your state laws...the fed law is 25% unless you pay child support...but because it's a state garnishment there is not much you can do and if you screw around with it to much you can end up in jail.

[spearmint]

your state can still garnish no matter where you live...and they can garnish unemployment depending on your state laws...the fed law is 25% unless you pay child support...but because it's a state garnishment there is not much you can do and if you screw around with it to much you can end up in jail.

But what if I am unemployed? There's nothing they can garnish.

[queenbee]

unemployment benefits

[spearmint]

Not in my case. The reason I am filing is to pay back an overpayment of unemp comp.

[queenbee]

ohhhhhhhhh...do you have a house they can put a lean on? or ANY liquid assets? savings, car more than $1200 (for WI) that's the amount allowed...I think that if they can't garnish wages, and if you move they will do a property lean or bank account levy so if you have a savings clean it out... it sucks I know we have a judgment from an old landlord even after filing BK it still harassing us...so I hear ya always trying to stay one step ahead..

[spearmint]

ohhhhhhhhh...do you have a house they can put a lean on? or ANY liquid assets? savings, car more than $1200 (for WI) that's the amount allowed...I think that if they can't garnish wages, and if you move they will do a property lean or bank account levy so if you have a savings clean it out... it sucks I know we have a judgment from an old landlord even after filing BK it still harassing us...so I hear ya always trying to stay one step ahead..

I own my home but I am upside down at the moment and I don't have much in the bank. I make sure of that - at least until I file Ch13 (if I don't get laid off, that is.)

[optimistic1]

Unemployment benefits cannot be garnished.

Page 12 of NOLO How to file a Chapter 13 Bankruptcy book.

[queenbee]

the 1st $1000 is exempt in the bank...they may just put a lean on the house..because they can......what state are you in?

[spearmint]

the 1st $1000 is exempt in the bank...they may just put a lean on the house..because they can......what state are you in?

Michigan.

They can put the lien on my home if they like but it's 30K underwater.

[queenbee]

Unemployment benefits cannot be garnished.

Page 12 of NOLO How to file a Chapter 13 Bankruptcy book.

But for a state garnishment?...in our state, they can garnish unemployment up to 20%... the judgment we have tried that, but my husband is paying $600 in child support on unemployment so ya nice try...and he filed ch 7

[queenbee]

Michigan.

They can put the lien on my home if they like but it's 30K underwater.

Michigan and WI laws are quite similar, lol I thing everyone owes more than their houses are worth anymore.....they only have to pay $5 to do it, and then they get paid if you ever sell the house...I would let them and if you decide to move just rent it out. Otherwise until you are unemployed they can garnish 25% of your wages for 13 weeks or until they are paid off...UNLESS you do a debtor's answer and it will put you below the Federal Poverty level then they can not garnish your wages and they are exempt...if you do a debtor's answer it automatically stops the garnishment until another court date is set

[queenbee]

The only thing from what you've said is a lean on the house...if your not employed there is nothing to garnish but I would double check with an atty to be absolutely sure. Messing with unemployment overage is noooo fun...they can also do a tax interception next year when you file your taxes they did that to my mom.

[mroberts50]

I am receiving unemployment compensation and my motorcycle got repossed. It was auctioned off and they say I owe the difference of $1,900. They are talking about suing me and taking everything I own. I only own a 2002 Toyota Echo. I live in the state of Ohio. Would it be worth filing chapter 7