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.
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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.
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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.