Sherman Oaks Wage Garnishment Lawyers
Wage garnishment is one of the most effective and, at the same time devastating, methods in which creditors use to obtain the debt they are owed. Borrowers, who are generally unable to pay the debt in the first place—hence the wage garnishment judgment—are often put under unbearable financial strain when this happens. Federal and state laws restrict wage garnishment and the way it can be used as a financial weapon by creditors, however, and the Sherman Oaks wage garnishment lawyers at Wadhwani & Shanfeld may be able to help you put an end to wage garnishment, or stop it from happening in the first place.
Your Rights as a Debtor
California and federal laws give debtors certain rights, and limit the rights of creditors to garnish wages. One of the ways the law is on your side is as follows: a creditor (under most circumstances) cannot legally garnish your wages until it obtains a judgment against you following a creditor lawsuit. If your wages are being garnished and the issue was never brought to court, the creditor may currently be engaged in an unlawful method of garnishment.
When a Party Can Garnish Wages Without a Court Judgment
There are only four scenarios in which wages can be garnished without a court order/judgment. These include:
- Student Loans—The U.S. Department of Education can garnish up to 15 percent of your disposable earnings
- Back Taxes—The federal government can garnish up to 70 percent of your disposable earnings, while California state and local governments can garnish up to 25 percent of your disposable earnings.
- Child Support—50 to 65 percent of your disposable earnings can be garnished to pay back-owed child support.
- Alimony—Up to 25 percent of your disposable earnings can be garnished to pay alimony.
How Much Wages Can be Garnished?
In California, creditors can only garnish the lesser of the following:
- 25 percent of your disposable earnings
- All of your disposable earnings that exceed 40 times the state minimum wage
Under federal law, creditors may garnish wages held outside of California, and seek the lesser of the following:
- 25 percent of your disposable earnings
- All of your disposable earnings that exceed 30 times the federal minimum wage
Using Bankruptcy to Stop Wage Garnishment
Bankruptcy can be used to stop creditors from obtaining your wages, even if they have already received a court order to do so. By filing for bankruptcy, the court imposes an automatic stay on your wage garnishment. While Chapter 7 bankruptcy stops all types of wage garnishment aside from child support and alimony, Chapter 13 stops all forms of wage garnishment.
Call a Sherman Oaks Wage Garnishment Lawyer Today
Wage garnishment can have a serious detrimental impact on your finances, making it impossible to ever get ahead again. If a creditor is suing you, or has already begun garnishing your wages, an attorney can help you keep garnishment from happening, and in some circumstances can recover the wages that have already been garnished from you. Contact the Sherman Oaks wage garnishment lawyers as Wadhwani & Shanfeld today at 899-996-9932 to schedule a free consultation.
