Groce & DeArmon, P.C.

Bankruptcy Attorney in Springfield, Missouri

417-862-3706 or

Toll Free in Missouri
1-800-640-3706

Navigation

Home » Wage Garnishment

Wage Garnishment

Wage Garnishment FAQs

By

Crumpled currency surrounding a clothespin with the words Wage Garnishment

Wage garnishment is something you may face if you have debts. Our attorney at Groce & DeArmon, P.C., can help you navigate any issues if you encounter this type of debt collection.

We answer frequently asked questions about wage garnishment.

What is wage garnishment?

Wage garnishment offers a legal way for lenders to pay your debts via a court order. 

How does a wage garnishment happen?

A lender goes to court, usually a state court, and files papers showing that a debtor owes a debt and that the debt remains unpaid, either in part or in full. The court sets a date for you to appear in front of a judge. 

After a court date or two, the judge will decide whether a wage garnishment is legal in the case. If the judge determines the lender has a right to garnish wages, the garnishment becomes legal for a company to collect the debt. 

Do I have the right to hire a lawyer in a wage garnishment case?

Yes, you have the right to legal representation during any court proceedings. Because it is a civil lawsuit and not a criminal case, you will be responsible for paying the attorney’s fees because a public defender cannot be appointed for you.

Gavel with Statue of Justice and bookshelf in the background

Why would you want an attorney during a wage garnishment case?

Depending on your financial situation or circumstances, a qualified attorney offers a way to negotiate with the lender during court proceedings. Every person’s situation is unique, which is why an attorney like ours at Groce & DeArmon, P.C., may offer you a free initial consultation to discuss your case.

How do wage garnishments work?

Following a court order, the court and the lender can direct an employer to withhold a specified amount of your paycheck to send it directly to the lender. The court sends the correct paperwork to your employer, including how much to garnish, when to garnish them, and where to send the money.

How much money can a wage garnishment withhold?

Up to 25 percent of your disposable income or the amount by which an employee’s weekly wages exceed 30 times the federal minimum wage, whichever is less, no matter how many garnishments are on your record. If you are the head of household, lenders can only garnish 10 percent of your disposable income.

For example, 30 times the current federal minimum wage is $217.50 at $7.25 an hour. Your disposable income is $750 per week after taking out deductions. 25 percent of $750 is $187.50. Your maximum amount to be garnished cannot exceed $187.50 per week.

As another example, your weekly disposable income is $1,500. 25 percent of that is $375. In this case, you would owe $217.50 total per week.

Using 10 percent if you are the head of household, you would owe $120 or $150 per week based on those income levels because both of those are less than $217.50.

How do I let the court know I am the head of household for wage garnishment?

There are two ways to do this.

  1. Prove the court at a hearing that you are a head of household. The usual way to do this is to fill out a form for the court, and a judge certifies it. A qualified attorney can help you prepare for this hearing. 
  2. Fill out an affidavit (a special form) with your employer after a judge rules in your wage garnishment case. This usually happens a week or two after the judge finalizes the case.

When can a lender or creditor garnish your wages in Missouri?

Most creditors need a court order for a wage garnishment. They need to prove to the court that you owe a debt and it’s unpaid. To do this, creditors file a lawsuit and obtain a judgment against someone who owes the debt. 

Examples of unsecured debts that might be subjected to a court-ordered wage garnishment include debts from:

  • Credit cards
  • Installment loans
  • Medical bills
  • Payday loans
  • Utility bills
  • Phone bills
  • Cable bills.

How long before a creditor or lender can garnish wages?

Typically, someone might have wages withheld anywhere from 5 to 30 days after a judgment against them.

When can a creditor garnish wages without a court order?

This is called administrative wage garnishment, and it could happen for:

  • Unpaid income taxes
  • Court-ordered child support or back child support
  • Defaulted student loans.

IRS Tax Form With Calculator Clock Glasses and Writing Utensils

What percentage of wages can an agency take for an administrative wage garnishment without a court order?

Federal agencies such as the Internal Revenue Service are not limited to court orders for 25 percent or 10 percent of your wages. How much the agency garnishes depends on several factors. An attorney can guide you.

For federal student aid, a lender can withhold up to 15 percent of your disposable wages.

In Missouri, child support enforcement can garnish up to 50 percent of your wages to pay child support if you are currently supporting a spouse or child who isn’t the subject of the child support order. If you aren’t supporting a spouse or child, Missouri can take up to 60 percent of your disposable income.

How long do wage garnishments last?

For unsecured debts in Missouri, these may last until the lender submits documentation to the court that the debt is paid in full. This is called continuous wage garnishment. 

What happens to wage garnishment if you quit your job?

If you quit your job, the garnishment stops temporarily. A lender must go back to court to get another order from a judge for your new employer. A lender can go back and do this as many times as needed until the debt is paid because a judge has already determined and ruled that someone legally owes the debt.

Can a wage garnishment hurt my credit? 

Yes, because it is a matter of public record. Possible lenders can see your wage garnishment when searching court records on the state or local level.

Does wage garnishment affect my employment?

An employer cannot refuse to hire, discipline someone, or terminate someone for a child support withholding notice for wage garnishment. Federal law prohibits an employer from firing someone for one garnishment. However, employees are no longer protected if they have more than one for multiple debts.

Can an attorney help me with wage garnishment?

Yes, an attorney can help you with this type of debt collection issue. Contact the dedicated bankruptcy attorney at Groce & DeArmon, P.C., or call us at 1-800-640-3706 in Missouri or (417) 862-3706 for a free initial consultation.

 

What Is Continuous Wage Garnishment in Missouri?

By

Hand writing Wage Garnishment on a piece of paper

Wage garnishment is often one lead-up to filing for Chapter 7 bankruptcy. Garnishing someone’s wages is a legal way for lenders to collect money to pay debts. Many wage garnishments in Missouri require a judgment of the court before enacting them. Some federal agencies, like the IRS, have the ability to garnish wages without a court order (called an administrative wage garnishment).

In today’s blog from Groce & DeArmon, P.C., we explain continuous wage garnishment laws in Missouri.

Pre-2015

Before 2015, wage garnishments in Missouri had a finite amount of time for lenders to collect money. Missouri law specified garnishments could last up to 180 days. After that time period was up, lenders had to go back to court to renew the garnishment for another 180 days, or however long it took to repay the debt.

Then the legislature amended the law to make it easier to collect debts while streamlining the process and reducing costs.

Continuous Wage Garnishment Now

Continuous wage garnishment means someone who owes a debt may have their wages garnished until the debt is paid in full or the relationship with the employer is terminated, whichever comes first. 

The lender must still check in with the court every six months by giving updates on the remaining balance due from the person owing the debt. This doesn’t require a court hearing, just a submission of the necessary paperwork (which can be done electronically).

If the lender (called a garnishor) fails to make such updates, the court shall terminate the garnishment by its own motion or a motion of any of the parties represented in the garnishment case.

When the person in debt pays the full amount, the lender who filed for the garnishment reports to the court that the garnishment ceases to exist.

Groce & DeArmon, P.C. & Wage Garnishment in Missouri 

If you are a resident in Springfield, Missouri, struggling from wage garnishments, the bankruptcy attorneys at Groce & DeArmon, P.C., can help. By law, filing for bankruptcy can stop wage garnishment until the matter is resolved. 

Let our experts tell you more. Contact us today or call our office at 417-862-3706 or 1-800-640-3706. 

How to Calculate Wage Garnishment in Missouri

By

Wage Garnishment on Post-It Note on Desk Near Marker and Calculator

Wage garnishment in Missouri comes from a court order, approved by a judge, in which a person’s earnings are withheld by an employer for the payment of a debt. Common sources of wage garnishment include child support, spousal support, unpaid taxes, and consumer debt through loans or credit cards.

In today’s blog by Groce & DeArmon, we demonstrate how to calculate your wage garnishment in Missouri.

Related Post: Wage Garnishment FAQs 

What are wage garnishment laws in Missouri?

Missouri wage garnishment laws stipulate that someone you owe a debt to can garnish up to 25% of your disposable income after your employer withholds money for federal, state, and local taxes. If you can prove you’re the head of your household, you can sign an affidavit stating that a garnishment can only take 10% of your disposable income.

Another way to calculate wage garnishment is by calculating the amount of money you make weekly that exceeds 30 times the federal hourly minimum wage.

How do I calculate wage garnishment in Missouri? 

If you need to calculate wage garnishment in Missouri but do not know how, a Groce & DeArmon, P.C. representative can help. Our legal experts have helped many individuals calculate their garnishments and provided financial relief, via bankruptcy or decreasing payments. 

What are some wage garnishment calculations and examples?

We’ll start with 25% of your disposable income.

  • Gross Income: $1000/week
  • Net (disposable) Income: $750/week
  • 25% (.25) of $750: $187.50 withheld per week.

Next, we look at the head of household at 10%.

  • Gross Income: $1000/week
  • Net (disposable) Income: $750/week
  • 10% (.10) of $750: $75 withheld per week.

Now, we examine 30 times the federal minimum wage.

  • Gross Income: $1000/week
  • Net (disposable) Income: $750/week
  • 30 times $7.25: $217.50 withheld per week.

The key here is that Missouri wage garnishments will take the least of these amounts. Rather than 30 times the minimum wage amount, you’ll have 25% or 10% (depending on your situation) withheld if your disposable income is $750 a week.

If 25% or 10% of your disposable income exceeds $217.50, an employer may withhold this amount per week as a maximum.

If you are still having trouble calculating your wage garnishment in Missouri there are wage garnishment calculators available as a resource. 

Related Post: Explaining Wage Garnishment Exemptions in Missouri

Let a Groce & DeArmon Attorney Stop Your Wage Garnishment in Missouri 

If you are a resident in Springfield, Missouri, struggling from wage garnishments, the legal team at Groce & DeArmon, P.C., can help. By law, filing for bankruptcy can stop wage garnishment. Let our experts tell you more. 

Contact us today or call our office at 417-862-3706 or 1-800-640-3706. 

What Is an Administrative Wage Garnishment in Missouri?

By

Wage Garnishment Words with Gavel

The bankruptcy attorneys at Groce & DeArmon, P.C., handle everything related to a bankruptcy case, including wage garnishments. In today’s blog, we talk about administrative wage garnishment in Missouri.

Wage Garnishment Versus Administrative Wage Garnishment 

By definition, wage garnishment happens after a court order by which an employer withholds a person’s earnings to pay a debt. Familiar sources of wage garnishment include child support and consumer debts. 

Administrative wage garnishment is a federal order that withholds at least 15% of earnings to pay a delinquent debt. State laws and provisions do not apply to this ruling. Also, administrative wage garnishment does NOT need a court order for this type of debt repayment to happen.

Policies and procedures of wage garnishment in Missouri include:

  • Disposable income deductions may not exceed 15% of net pay. Higher percentages are deductible through the written consent of the debtor. 
  • The individual is allowed to inspect and copy records relating to the debt.
  • An employer may not terminate, refuse employment, or take disciplinary action against the person involved in the administrative wage garnishment. These events are subject to a court of law, in which the person may sue any employer attempting unlawful acts. 
  • The debtor may enter into a written agreement with the garnishment agency under the agency’s terms to establish a repayment schedule. 
  • The debtor will have a hearing on the determination of the garnishment agency concerning the amount of debt. 

What Agencies Employ an Administrative Wage Garnishment?

Any federal agency can order an employer to undertake an administrative wage garnishment. These agencies include the Internal Revenue Service (for taxes owed) and the Department of Education (for student loans). 

At Groce & DeArmon, we specialize in more than bankruptcy. We have the experts and resources available to you to handle any administrative wage garnishment claims in Missouri. Our knowledgeable staff is here with you every step of the way. Speak to our office professionals about your options. 

Employer Withholding Instructions

Under federal law, employers in Missouri must comply with wage garnishment in Missouri. Any refusal is subject to a court of law and punishable by imprisonment. 

The steps of employment wage garnishment include: 

  • Ensuring the debtor’s information is correct regarding name, Social Security, address, and fill out the Employer Acknowledgement of Wage withholding form in its entirety. 
  • Calculate and deduct the wage garnishment for each pay period. 
  • Submit the amount to the federal agency address provided, double-checking the individual’s information is correct, indicating that you are submitting a wage withholding payment.
  • The employer will continue to submit wage garnishment payments until instructed otherwise with an official release form. 

Administrative Wage Garnishment Process

All federal agencies must follow specific procedures under an administrative wage garnishment.

State law. An administrative wage garnishment may happen regardless of what state laws say about garnishments, meaning an administrative wage garnishment from a federal agency supersedes state law. 

Notice. You will receive a notice 30 days before the garnishment will start. Notice is sent to the last-known address known to the federal agency.

Repayment agreement. Before wage garnishment begins, you have the right to enter into a repayment agreement.

Lack of employment. If you are no longer employed due to being involuntarily separated from your previous job, an agency cannot file an administrative wage garnishment. Administrative wage garnishments cannot happen if you have been at your job for less than 12 months.

Automatic stay. If you file for bankruptcy, it automatically stops administrative wage garnishments. Although you cannot discharge some debts, like those for income taxes and student loans, filing for bankruptcy will STOP the wage garnishment until the trustee finalizes your case.

Speak to a Groce & DeArmon Attorney About Your Wage Garnishment in Missouri 

If you are a resident in Springfield, Missouri, struggling from wage garnishments, including an administrative wage garnishment, the legal team at Groce & DeArmon, P.C., is here to help. By law, filing for bankruptcy can stop wage garnishment. Let our experts tell you more. 

With over 15 years of experience, our attorneys have handled hundreds of claims in foreclosure, bankruptcy, and repossession. We have a positive track record of successful testimonials and offer affordable rates for individuals or families going through hardships. Get in touch with a firm that cares and may help prevent your wage garnishment from escalating into foreclosure or repossession.

 Contact us today or call our office at 417-862-3706 or 1-800-640-3706.

Explaining Wage Garnishment Exemptions in Missouri

By

Word Exempt Against a White Background

You’re facing the possibility of a wage garnishment but want to know more about how to prepare for it. In today’s blog, experts with Groce & DeArmon, P.C., will discuss wage garnishment and exemptions that exist for it in Missouri. You will understand what exemptions you might be qualified for and how to reach out to us about them. 

Disposable Earnings

Limits on disposable earnings keep maximum garnishment at 25%. This is of disposable income, meaning any funds not reported for basic living expenses.

Head of Household Disposable Earnings

An individual living as a resident of the state and filing taxes as Head of Household is only subject to lose 10% of their disposable income to garnishment. 

Child Support

The Consumer credit Protection Act establishes the limits regarding wage garnishments associated with child support orders. Child support garnishments can be as high as 50-60% of an employee’s disposable earnings for the week. This is dependent on whether other individuals rely on that earner’s funds. 

Other Exemptions 

These include: funds of the debtor on deposit with a bank or financial institution in an account in which all funds are: 

  • Deposited electronically on a recurring basis
  • Reasonably identified as funds exempt from garnishment pursuant to section 513.430.1(10)(a), (b), or (c) RSMo or subject to the exemptions under Title 31 C.F.R. Part 212.” Id. 
  • Missouri also exempts certain types of individuals and entities from being subject to liability as a garnishee. 

Talk to Groce & DeArmon, P.C.

Suppose you have further questions on wage garnishment, what exemptions you might have, or are requesting assistance with organizing your financial assets. In that case, we can discuss your options and help you determine the best course of action for your situation. Our first consultation is always free. Contact Groce & DeArmon, P.C. or call toll-free 1-800-640-3706 in Missouri or (417) 862-3706. 

What Happens to Wage Garnishment in Missouri When You Change Jobs?

By

Gavel Next to Money sticking out of leather wallet

If a debtor owes funds to a creditor, these funds become liable for wage garnishment. This garnishment might seem like a terrifying term, but the power of fear only exists in withholding information. In today’s blog, experts with Groce & DeArmon, P.C., will discuss wage garnishment in detail and what to expect when this process occurs. 

Related Post: Wage Garnishment FAQs

Wage Garnishment 

The court procedure used to seize a person’s property or paid assets to pay a debt owed to a creditor is known as garnishment. Garnishment typically requires wage restriction to pay a debt. However, the property can also be seized. 

Technical terms surrounding wage garnishment include:

  • Garnishee: the person holding the money owed to the debtor.
  • Termination: the ending of garnishment occurs should the employee stop working or fired from a job.
  • Penalties: if the garnishee fails to comply with the garnishments ordered to them, they’ll be cited for contempt of court and will receive attorney’s fees and court costs. 
  • Defenses by garnishee: a garnishee can oppose garnishment by filing a motion with the court. They can prove that tips were filed against them by the employer or other grievances that could dismiss or lower the garnishment amount.

How Wage Garnishment Works

Wage garnishment typically occurs when a debt is owed past a particular time frame without effort to pay. The creditor has to file a Request for Garnishment on Wages with the court. 

After the request is filed, the court clerk/judge signs the request, and it becomes a Writ of Garnishment. The Writ of Garnishment requires a garnishee to hold any property or wages of the debtor at the time the Writ has been filed. The creditor is required to pay court fees to file the Request for Garnishment. The Writ of Garnishment has to be served to the debtor by certified mail, restricted delivery, private process, or sheriff/constable. 

The garnishee must file an answer to the Writ within 30 days of being served. This Writ must state whether the debtor is employed, their rate of pay, and existing wage garnishments. 

Related Post: 6 FAQs About Finding the Right Credit Counselor After Filing for Chapter 7 Bankruptcy

Job Changes 

If a debtor leaves a job or is fired and goes more than 90 days without being hired back, the garnishment will be terminated. The creditor can file for a new garnishment and complete the process over again.

Related Post: How to Afford Your Home Mortgage with Bankruptcy Protection

Talk to Groce & DeArmon, P.C.

Suppose you have questions on filing for bankruptcy or are requesting assistance with organizing your financial assets. In that case, we can discuss your options and help you determine the best course of action for your situation. Our first consultation is always free. Contact Groce & DeArmon, P.C. or call toll-free 1-800-640-3706 in Missouri or (417) 862-3706.

What Situations Can Cause a Wage Garnishment in Missouri?

By

Form With Clipboard Regarding Wage Garnishment

Wage garnishment in Missouri occurs when a creditor seeks to recoup a debt from someone who owes them money. Typically, creditors can seek up to 25% of your income. Today’s blog from Groce & DeArmon P.C. explains what situations can cause wage garnishment in Missouri.

Related Post: Groce & DeArmon P.C. Explains Wage Garnishment and Missouri Law 

Does a wage garnishment require a court order or not?

Yes, most creditors need a court order for wage garnishment. This means they must file a petition in court where you reside, give you a chance to appear in court to defend yourself with the help of an attorney, and then the court must rule in favor of the creditor. However, not all entities need to go to court. When this happens, it’s called an administrative wage garnishment.

Can the state of Missouri get a wage garnishment to pay child support?

Child support enforcement in Missouri doesn’t need a court order for wage garnishment. Plus, child support can take more than 25% of your wages, especially if you owe back support (called arrears). 

Can Missouri use a wage garnishment to pay back taxes?

The Missouri Department of Revenue can seek a court order to garnish wages for back taxes, as can the IRS for federal income taxes. The DoR and IRS can also put liens on property and seize assets to satisfy tax bills. 

How can creditors use a wage garnishment to pay any debts I owe?

Creditors may seek relief in court at any time after you default on a debt. You might see wage garnishment for credit cards, medical debt, auto loans, and unsecured debts. Typically, major creditors go to court as a last resort. They seek other remedies first that are more cost-effective before heading to court. Other remedies include hiring debt collection agencies, selling off debt, or writing off debt as part of income tax filings.

How can I lower a wage garnishment to under 25% of my income?

You can take action to request that less than 25% of your wages are garnished. You have to sign an affidavit stating you’re the Head of Household when it comes to filing taxes. Head of Household means you provide all or most of the income for a household with dependents, including children. If this is the case, wage garnishments can max out at 10% in Missouri. That’s because having a wage garnishment at 25% on a Head of the Household may adversely affect the living circumstances of other people in the home. This is one of the wage garnishment exemptions in Missouri.

Related Post: How Bankruptcy Can Stop Wage Garnishments

Talk to a Bankruptcy Attorney at Groce & DeArmon P.C. 

Filing Chapter 7 bankruptcy can stop wage garnishments and debt collections immediately. Contact Groce & DeArmon P.C. or call toll-free 1-800-640-3706 in Missouri or 417-862-3706 to schedule a free consultation about filing for bankruptcy.

Can Bankruptcy Prevent You From Getting a Job? Groce & DeArmon Explains

By

Groce & DeArmon Bankruptcy & Getting a Job

Bankruptcy has benefits, but it also has consequences. You could discharge many kinds of debt through Chapter 7 bankruptcy. However, you might have trouble getting good credit for the next decade depending on what kinds of loans you try to obtain. That’s because a bankruptcy stays on your credit report for up to 10 years. In today’s blog from Groce & DeArmon P.C., we answer, “Can bankruptcy prevent you from getting a job?”

Related Post: When To Seek Legal Aid For Potential Bankruptcy

Employers & Credit Reports

Potential employers can request a credit report from candidates. They must ask permission to obtain a report, and you must give them permission in writing. Companies in the private sector (non-government entities) can refuse to hire you if you don’t consent to having a credit check.

Government Jobs

Federal, state, or local government agencies cannot consider your bankruptcy when deciding to hire you. This is even true if you need a security clearance to obtain a government position. One thing to note is that government jobs often have greater areas of scrutiny compared to civilian jobs. Groce & DeArmon can explain what effect, if any, filing for bankruptcy can have on your job prospects.

Reasons for Credit Checks at Employers

As many as 16% of employers run credit checks on all candidates, while nearly one-third do credit checks on some candidates. (According to a survey from HR.com.) 

Circumstances vary, but the main reason employers run credit checks on candidates is that there’s some kind of financial aspect to the person’s job duties. Banks, accounting firms, payroll firms, retail stores with cash drawers, restaurants, security firms, and similar companies may require a pre-employment credit check. The reason for these checks is because firms want to protect their employees and customers.

High-level positions, such as executives and company officers, may also require a credit check. Groce & DeArmon can counsel you about what to expect when an employer runs a credit check on you for future employment.

What Companies Cannot Do

Private companies cannot discriminate against you because of your credit check if you’re already on the payroll. If you’re worried about the negative effects of a bankruptcy filing with your employer or potential employer, being upfront and honest with HR might outweigh any concerns the company may have with your financial situation. 

A credit check is just one factor that should be considered for a job. If credit information is used against you in the employment process, the employer must explain so in writing, giving a detailed explanation of where they obtained the information. If you have any questions about this process, you can also consult with a bankruptcy attorney like the ones at Groce & DeArmon.

Firms cannot fire you, demote you, or change your job duties due to your bankruptcy if you’re already hired. Again, talking to your employer might be the best course of action here. Everyone goes through trying times, and explaining your situation can alleviate some of the concerns. 

Related Post: Pros and Cons of Filing for Chapter 7 Bankruptcy

Talk to Groce & DeArmon, P.C., for Bankruptcy Protection

Worried about what effect bankruptcy may have on your future career prospects? The bankruptcy attorneys at Groce & DeArmon can advise you on how to handle this situation. Contact Groce & DeArmon P.C. or call toll-free 1-800-640-3706 in Missouri or 417-862-3706 for more information or a free consultation about filing for bankruptcy and its effects.

How Bankruptcy Can Stop Wage Garnishments

By

Bankruptcy attorney with money and gavel

If you are having a hard time covering day-to-day living expenses due to wage garnishment, it can be difficult to find a good solution for paying off debts. In today’s blog, Groce & DeArmon, P.C. offer a solution that could help: Chapter 7 or Chapter 13 bankruptcy. Read on to learn how bankruptcy can stop wage garnishments and how our team of bankruptcy lawyers can help.

Understanding Wage Garnishment

Wage garnishments are court orders that cause your employer to withhold a part of your paycheck in order to pay back a creditor or a person to whom you owe money. Creditors have the right to garnish 25% or more of your wages to repay debts on things such as child support, defaulted student loans, consumer debts, and unpaid income taxes.

Related Post: What Are the Wage Garnishment Laws in Missouri?

The Automatic Stay

Whenever a debtor files for bankruptcy, an injunction called an automatic stay goes into effect immediately. This will quickly stop wage garnishments along with other types of debts, giving debtors a temporary break from the financial crisis.

If the debt that led to wage garnishment includes credit card bills, medical bills, or court judgments, they will be wiped out during bankruptcy, permanently stopping the wage garnishment. If you filed for Chapter 7 bankruptcy, these debts may be discharged at the end of the case. If you filed for Chapter 13 bankruptcy, you can include these debts in the bankruptcy repayment plan rather than going through wage garnishment.

It is important to remember that not all debts may be discharged during bankruptcy. In some cases, bankruptcy will only temporarily stop the collection of debts and wage garnishment, in which case you will still owe these debts once the bankruptcy is over.

Recovering Previously Garnished Wages

In some cases, debtors can try to recover wages that were garnished before they filed for bankruptcy. But it is important to remember that most of the time this isn’t worth the cost, and that filing for bankruptcy as soon as possible will help you avoid the loss.

If you decide to try and recover garnished wages, remember that it must have occurred at most 90 days before filing for bankruptcy, it must not exceed a particular amount, and the amount you wish to recover will need to be covered by an exemption.

In most cases, there is little to no exemption protection for wage garnishments, and you will have to file a lawsuit in bankruptcy court against your creditor. It’s important to speak with your bankruptcy lawyer to decide whether or not recovering garnished wages is right for you.

Life After Bankruptcy

Remember that creditors are not able to resume wage garnishments on debts that have been discharged, including credit card balances, personal loans, and medical bills. Also, remember that creditors are able to resume garnishment for non-dischargeable debts which you will be responsible for paying.

Related Post: How to Prevent Wage Garnishment With a Bankruptcy Lawyer

Bankruptcy Attorneys at Groce & DeArmon, P.C.

If you find yourself in financial trouble due to wage garnishment and you think that filing for bankruptcy may be right for you, bankruptcy lawyers Groce & DeArmon, P.C. may be able to help. We offer trustworthy services that can help you decide which type of bankruptcy is right for you. Visit us online or call us at (417) 862-3706.

Groce & DeArmon Explains Wage Garnishment and Missouri Law

By

Wage garnishment is scary, whether from a debt you incurred or if you’re paying child support. Bankruptcy is one possible solution to some of your debt difficulties, including garnishing your wages. In today’s blog, the bankruptcy attorneys at Groce & DeArmon discuss the wage garnishment as it pertains to Missouri law.  

Related Post: How Bankruptcy Can Stop Wage Garnishments

What is wage garnishment?

Wage garnishment is when a court orders your employer to withhold part of your paycheck to pay back a creditor to whom you owe money. In most cases in Missouri, creditors can garnish up to 25% of your wages and sometimes more. Wages can be garnished to repay outstanding debts on child support, defaulted student loans, consumer debts, and unpaid income taxes.

How does wage garnishment happen?

If a creditor finds that you are falling behind on payments, it cannot immediately start garnishing wages. Wage garnishment only happens after a creditor sues for nonpayment of debt, proves that you owe the claimed amount, and then wins a court order to follow through with garnishment.

Following the court order, local law enforcement will serve you, the garnishee, through either your employer or your bank. After you have been served, you have 5 to 30 days to object to the court order before the garnishment begins.

Groce and DeArmon Quick Tip: Not all creditors need to file for a court judgment before garnishing wages. If you are in this situation, contact an attorney right away.

What are my rights as a garnishee in Missouri?

If you find that a wage garnishment will cause undue financial harm to you or your family, you may have certain rights, such as objecting to the court order, requesting a lower percentage of wage garnishment, or filing bankruptcy.

Related Post: Can Bankruptcy Prevent You From Getting a Job? Groce & DeArmon Explains

Can I object to a wage garnishment?

Yes.

How you object to a wage garnishment varies based on the type of debt that is being collected and the state in which you live. The period of time between being served and the end of the objection period is typically very short, so it’s smart to act fast and contact a debt attorney to help you through the process.

What are Missouri’s wage garnishment limits?

The three types of creditors in this section have the right to garnish wages without a court order. This is called an administrative wage garnishment.

For child support debts, up to 50% of your disposable income earnings may be garnished if you are supporting a dependant other than the one involved in the garnishment. If you are not supporting a spouse or child, 60% of your disposable earnings can be garnished.

For defaulted student loans, creditors such as the Department of Education can garnish up to 15% of your disposable income, but not more than 30 times the minimum wage.

For unpaid taxes, the federal government can deduct taxes from your wages without a court order based on the number of dependents you have and your deduction rate. In some cases, state and local governments may also be able to garnish wages for unpaid taxes.

If you can prove you’re the head of household, meaning your income supports people such as children, spouses, or relatives, you can fill out an affidavit that allows creditors to take only 10 percent of your wages as a wage garnishment exemption in Missouri. Otherwise, a creditor can take up to 25 percent of your wages.

Can filing for bankruptcy stop wage garnishments?

Filing for bankruptcy can help stop wage garnishment in many cases and help erase debt at the same time. Filing for bankruptcy will put an automatic stay in place, which will prohibit most creditors from collecting debts and seeking wage garnishment. Following bankruptcy, creditors cannot garnish discharged debts such as credit card balances, personal loans, and medical bills, but they may resume garnishment on nondischargeable debts.

Related Post: How to Prevent Wage Garnishment With a Bankruptcy Lawyer

Contact Groce & DeArmon Today

When filing for bankruptcy, it is important to know that it will not stop all wage garnishments. It is also important to know which type of bankruptcy is best for you. This is why the bankruptcy attorneys at Groce & DeArmon are here for you. Contact Groce & DeArmon, P.C. or call 1-800-640-3706 to talk to a bankruptcy attorney today.