If you have credit cards you owe, can they take money from your salary before you even say how much or if yes? Do you have any say at all? Does your job say yes or no?
2007-07-17 12:21:22 · 11 answers · asked by soleil_fairy 3 in Business & Finance ➔ Credit
No. First, the creditor must take you to court and receive a judgment on the debt owed. At this time you can make a payment arrangements with the presiding authority. If you don't follow through with the agreed payments, the creditor can then petition the court for a Writ of Garnishment.
How much that is withheld per paycheck is dependent upon the state in which you live. Some states (like Indiana) follow the federal guidelines of 25% of your disposable income (Net) or 30 times the federal minimum wage ($5.15), whichever is greater. And then there are a few that do not allow garnishment of wages at all.
Only child support, federal debt/loans are allowed to deduct 50% of your disposable income.
Employers can withhold for multiple ganishment orders. However, all creditors must share the garnished amount. Each creditor does not get 25% a piece. But most creditors will wait in line. As the federal law disallows the employer from firing an employee for just one garnishment order. However, if you have more than one being withheld at the same time, you're not protected from being terminated. That's why they'll wait, because you still have a job and money.
Your employer has no say in the matter.
2007-07-17 13:04:10 · answer #1 · answered by Celeste 6 · 0⤊ 0⤋
If they file suit against you and win, they can indeed garnish your wages! However, most creditors would rather work some arrangement out with you to avoid having to do such a thing! If you find yourself being threatened with garnishment, check your local court house, you may be able to file a, "Writ of Installment Payments", basically all it is. is a court order that forbids them from garnishing your wages as long as you make payments in the amounts that are agreed to at the time this order becomes enforced.
2007-07-17 12:30:41 · answer #2 · answered by bender_xr217 7 · 0⤊ 0⤋
Yes they can but they need to garnishee your wages and that requires going through the legal system.
If they don't want to go to all that trouble they try to harass you into paying first. If that doesn't work they take the legal steps to get the money.
If they do that, your employer will say yes, I think they are required to do so.
The only say you have is if you offer to settle with them before it gets to that point. Sometimes they will offer you a reduced amount like ten cents on the dollar.
The reason the collection agencies do that is once the bank turns it over to them they get a percentage of anything they collect so they have nothing to loose.
Banks don't turn it over to a collection agency until they get to a point that they don't want to chase you any more and they write it off. After that your dealing only with the collection agency.
If you let it get to the point of a collection agency it destroys your credit rating so your best to try to settle with the bank first.
2007-07-17 12:35:10 · answer #3 · answered by unknown friend 7 · 0⤊ 0⤋
it may vary by state, but you would know before it happened because it would have to be court-ordered. as far as your job saying yes or no, that would be a no, they do what the law tells them. some employees (like mine) will only allow one garnishment at a time, so say two places win their suit against you, only one could be done at a time. there's also a limit to how much of your income they can take. i think it is 1/3, with the exception of child support or government back-taxes. my brother currently has to pay 1/2 of his income to the government on old taxes.
2007-07-17 12:33:07 · answer #4 · answered by casw1 4 · 0⤊ 0⤋
You are apparently speaking of 'wage garnishment'. You have not a great deal to say in how much is taken, nor does your employer. The amount to be withheld is determined after a court consult relative to your wage, cost of living, etc.
An employer must, under law, comply with an order to garnish your wages according to a court order received by the employer.
2007-07-17 12:41:20 · answer #5 · answered by acermill 7 · 0⤊ 0⤋
They can take your money, but haveto take you to court first.
They can get 25% of what you make, however, you can request a lower amount by asking the judge to consider your financial situation at home.
My mother in law owes a judgment for $3k and got the judge to order payments of $25.00 every two weeks...go figure
2007-07-17 12:29:47 · answer #6 · answered by Cali Girl 3 · 0⤊ 0⤋
most of the time they will "write it off" and it will look real bad on your credit.
to actually garnish your wages, they need to take you to court and all that good stuff. then they will decide on the percentage to take out there. (i know in indiana it's a max of 33% of your check).
it sometimes takes years for that to happen. depending on the amount you owe, they may just write it off.
2007-07-17 12:24:40 · answer #7 · answered by Coltsgal 5 · 0⤊ 0⤋
it is called garnishment . it is done on court order. if it is ordered by a judge you will be informed . and may have time to take action. seek the advice of a credit counselor.
2007-07-17 12:25:15 · answer #8 · answered by ardw7 4 · 0⤊ 0⤋
Only if they take you to court and the court alows it..and even then it is usually no more than 25%.
They may threaten you but it's doubtful they will got that far..iot's mostley a scare tactic.
2007-07-17 12:31:08 · answer #9 · answered by Anonymous · 0⤊ 0⤋
I think it depends on your state laws.
2007-07-17 12:24:55 · answer #10 · answered by Anonymous · 0⤊ 0⤋