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
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.
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.
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.