Information on Two Creditors Garnishing Wages at the Same Time - The Bills.com Blog

I live in Wisconsin and have a garnishment of wagesfor a debt owed to Wisconsin Dept of Revenue (prior to my marriage and we have a premarital agreement so that it is solely my debt) My question is this: Since I have a garnishment, can a third party debt collector issue a garnishment for a debt my husband owes?

Because you live in a community property state, the creditor could possibly sue both you and your husband, under the theory that this debt was incurred as a community debt. Also, if you were a co-signor on your husband's account, you may be legally liable for the debt. As far as the garnishments go, the creditor in question will first have to obtain a judgment for garnishment in order to start garnishing your wages. There are limits on the amount of wages that can be garnished. Typically, 20% of a debtor's net earnings after withholding taxes and Social Security can be taken by a creditor. A debtor does have the right to assert various exemptions to the garnishment, including income below the Federal Poverty Guidelines, eligibility to receive foods stamps or medical assistance, or court-ordered assignments of child support that exceed 25% of the debtor's wages. Therefore, if your previous garnishment has already reached 20% then the other creditor would have to wait till the earlier garnishment is satisfied before they can enforce their judgment on you.

my bank accounts, even my daughter's and my mother's, all linked to me at same bank, were garnished while i was in litigation following divorce, for a property settlement agreement. they wiped up clean, no percent recognized, zero balance, mine had just been funded with child support checks x 5 for back pay, and my mom's social security. that was last year, i've tried to seek help. the collector is attorney, now send letter to me for again over $14,000.00 in garnishment!. where should i seek help, or am i just out of luck/? thank you.

The first thing I suggest you do is open a seperate bank account for you Mom to cash her social security checks. Social security income and child support payments are usually protected from garnishments and I am not sure how the company managed to take out everything in your account. You definitely need to contact an attorney to see what your options are. Bankruptcy may protect you from this, but I just don't know enough about your situation, nor am I an attorney, so plese do contact one immediately.

I live in NJ and just received word of a garnishment and know of one more on the way, can I be fired? How do I find out?

Whether you get fired because of this granishment depends on your company's internal policy. You should find this out through the HR person in your office.

I live in Wisconsin and due to a felony conviction, my husband & I were divorced. I have Tax liabities, both federal and state, and other liabilities. He filed bankruptcy and also received innocent spouse status. If we remarry, can he be held responsible for these debts?

If he received innocent spouse release from a court, then it is unlikely that he would have any liability from your historical IRS debts. You should seek advice from a qualified IRS Debt Relief firm, and I would recommend Freedom Tax Relief at: Freedom Tax Relief

I was served papers for a garnishment, went to court and asked Resurgence (the collection company used) to produce what credit card they were talking about and a document with my signature on it that I in fact took out that credit card. They could not, the judge said since they did not have the information he set a different court date-the rep from resurgence said on numerous occassions that they would prob not have the info by May 13-the 2nd court date, and said I did not need to attend court that day-stupid me-he said he would let me know when he could produce the info I requested. Well, apparently he did go to court on May 13th, don't know if he actually did have the documents and now my wages are being garnished to the tune of 15% of my salary. Do I have any recourse at all??? I cannot afford an attorney. I know I was naive now that I believed him but I can barely live now.

You could potentially file a motion to set aside the default judgment that was entered against you for failing to appear. Basically, the rep tricked you into not showing up; if you file a motion with the court to that effect, the judge may be willing to give you an opportunity to make your case. Hopefully that will work. In a worst case scenario, you may be able to file for bankruptcy protection, depending on your situation, which could stop the garnishment. Either way, though, you will probably want to at least consult with an attorney. I would recommend hiring one to represent you. I know it’s expensive, but that would give you the greatest chance of prevailing.

if there garnishing me 50 percent for child support can another garnish me an extra 20 percent

No, there is a limit to what percentage of your income can be garnished, based on your state laws. Check on http://www.bills.com/collection-laws/

can one creditor garnish your wages for 25% and at the same time another creditor garnish your bank account for all the money you have in there? do you have to be personally served with court garnishment papers? what if you don't get the garnishment papers and don't know that they are going to garnish?

There are limits on the percentage of your wage that can be garnished. It depends on your state laws, check here: http://www.bills.com/blog/. You have to be served papers to appear in court even before the garnishments are awarded to the creditor, but once the creditor is successful in getting a garnishment judgment against you it is not necessary that you are notified. Even when serving papers, the creditors will go by the last address they have from you, it is your responsibility to keep your address updated with them.

my check is being garnished in Council Bluffs Ia, for a repo. on a car, how much can they take a year from me and do they have to give me recovery time to get caught up?

The amount of your wages that can be garnished depends on your State law. Please check here for limits pertaining to your state: http://www.bills.com/collection-laws/. The limits state the percentage of wages that can be garnished and the garnishment will continue till the dues are paid back in full. I am not too sure about any recovery time being provided. If you had any constraints you should have brought that up in court.

i have not paid my overdue credit cards for almost 3 years...i still get some calls and received one notice to appear in court in novemember 2008 but did not appear as i cannot pay......what do you think will happen now.. i owe about 20 thousand and have no way to pay...

Ignoring the court appearance notice was a bad idea. As you did not appear in court to present your side of the story, the court will pass a default judgment against you in favor of the credit card company. Now, depending on your state laws, your wages might be garnished. You can check the state laws here: http://www.bills.com/collection-laws/. It would be good idea to get help from an attorney.

I have been garnished by a collector out of Omaha for 25% of my wages, now I received a garnishment notice saying they are going to garnish my bank account, for a different debt. But the same company is applying these two garnishments, hell I don't even have more than 200 or 300 hundred bucks at at time- would this be illegal in Nebraska or even under federal law, due to them taking 25% for one garnishment then garnishing my left over wages that are directly deposited? Please help me understand this better... thanks!

Sorry Alex but the second issue that you raise is actually a levy of your bank account. They have filed for both a wage garnishment and a levy of your bank account. Since it has clearly been granted, just about every time that you put funds into your bank they can freeze them and take them until the debt is satisfied. You should probably talk to a bankruptcy attorney and start using your mattress to bank for a bit. Sorry to hear about your situation, but hang in there Alex.

so essentially the creditors are allowed to double dip into my pay in order to satisfy the debts, instead of waiting to do the garnishments one at a time? That sounds mighty illegal IMHO.

You should probably go and talk to an attorney and see if you can get the garnishment lifted or the levy released.

I live in North Carolina, is it possible for a creditor to garnish my wages?

As per the NC Department of Labor (http://www.nclabor.com/wh/fact%20sheets/garnishments.htm): "Under North Carolina law, an employer may be ordered to withhold wages from an employee and pay them to a creditor for the following types of debts: taxes, student loans, child support, alimony, and payment of ambulance services in certain North Carolina counties. However, the courts of North Carolina are not permitted to order an employer to withhold wages for other types of debts such as car loans, credit card debt, and other personal debt items. While the North Carolina courts are not permitted to garnish wages based on these debts, creditors in other states may be able to get an order of garnishment under their own states’ laws."

can my retirement check from the state of arizona be gar nished.im retired .head of household, and take care of a 60 yr old brother, who is almost blind, as well as a 46 yr old son who has seizures, and cannot work.i recieved a civil summons from a very deflated credit card debt, and have to answer tommorrow at justice court.i have to pay a filing fee and have the

Fixed income such as retirement funds cannot be garnished in general. You can look up your state laws here: http://www.bills.com/blog/. make sure that you appear in court, otherwise the creditors will end up winning the case as s default judgment will be passed against you.

I just found out that I have 3 seperate companies that have seperate student loans which are in default. I literally got 3 letters, each company stating they will be garnishing 15% of my paycheck each time i gt paid. 1 for $5,700; 1 for $21,000 and 1 for $8,000. Does that mean that 45% of my disposable income will be taken out each pay period? I live in the state of South carolina.

I don't know how that is possible, SC law states that 100% of your wages are protected from garnishment. See here: State Collection Laws.

When recieving unemployment can two debts be garnished at a time?

Generally speaking, unemployment benefits cannot be garnished to pay a regular judgment creditor, so if your debt is just regular consumer debt, such as credit cards, personal loans, etc., then you likely have little reason to be concerned. If you owe back child support or some other priority obligation, it is possible that your unemployment could be garnished, but since unemployment benefits are usually not very large, it would surprise me if they could garnish much. If you do owe a debt that can garnish you unemployment benefits, there will be a limit to how much can be garnished which varies from state to state. If you think that your unemployment benefits may be garnished, you should contact the state agency which manages your benefits to inquire about the amount of your benefit that can be garnished. Again, only a very small set of priority obligations are usually able to garnish unemployment benefits, so it is unlikely that your benefits can be garnished by any amount.

I live in wisconsin and have had one garnishment against me. It is substantial (250K). I just want to clarify one point. If I allow that creditor to garnish the maximum...does everyone else have to wait until that debt is paid off before they can garnish? Thanks

That sure is my understanding, with the exception of things like alimony or child support. But if they are unsecured creditors then they have to get in line, they cannot all simultaneously garnish you for the maximum or there'd be nothing left. Why don't you talk to an attorney or look into bankruptcy?

I live in NY state. I have several medical bills that have gone to default and have received 2 separate garnishment notices within a week. Can they Take funds from my Paycheck at the same time or do they have to wait in order. Also does NY state allow a company to fire an employee for excessive debt?

Generally speaking, only one creditor at a time can garnish your wages. In New York, 90% of your gross income is exempt from garnishment. Under federal law you may not be fired for one garnishment. However, you have no protection for multiple garnishments.

I live in Missouri. I am already being garnished by the dept of education for a student loan, and have been for the past year. Today, I received a call from the collection agency the loan was sold to. They are planning to send an order to garnish my wages. Can I be garnished by two seperate entities for the same debt?

Absolutely not. First, you can only have one wage garnishment at a time. Second, the moment that the department of education sold the debt, its garnishment order expired.

Thanks for the quick reply on the previous post. According to what you stated, I can only have one wage garnishment at a time. Is that correct? The reason I ask is because as I stated, the dept of edu is currently garnishing my wages. Another garnishment for a hospital bill is currently being taken from my paycheck also. Is that ok or should the other not be in effect until the first garnishment order is satisfied? and if so/if not, what should I do?

Thank you for your reply. Unfortunately, my earlier post was wrong. Garnishment is much more complicated than I had previously understood and expressed. Wage garnishment is controlled by both state and federal law. The US Department of Labor offers a summary of the Consumer Credit Protection Act (CCPA), which discuss US laws regarding garnishment. Unfortunately, the US Dept of Labor Web sites do not discuss Administrative Wage Garnishment a tool used by the US Department of Education. The BCS Alliance offers a page detailing state laws. To your question, yes, the Dept of Education has the ability to garnish your wages if there is another garnishment in place.

I pay child support payments bi-monthly of close to %25 now my divorce attorney is trying to garnish my wages can he and if so how much ?

Garnishment laws vary by jurisdiction. See the BCS Alliance Web site for state-by-state rules on garnishment.

I live in California and have just been served with a garnishment on my child support order for my second employer. Can they garnish from both?

The way I read the Consumer Credit Protection Act (CCPA) Wage garnishment rules, there is no prohibition against garnishments from more than one employer.

I work in payroll and my boss and i have a difference of opinion on calculating garnishment for one of our employees, can u help? the employee has a child support order of a set dollar amount as well as has been served with a continuing garnishment to a creditor. This employee's earnings are always enough to exceed the federal minimum of earnings. My question is do i withhold only a total of 25% or do i withold the set dollar amt. for child support and 25% for the continuing garnishment? thanks in advance for your help...

You are asking a legal opinion, which I cannot give you. I suggest you read 15 U.S.C 1671, specifically § 303 a(2)(A) "Restriction on garnishment." If the answer is not clear to you and your supervisor, I suggest you contact an attorney in your state who specializes in labor law.

i live in California and i have defaulted on mu student loan, im about to be laid off in 3 weeks. My questions, can the collection agency garnish mu unemployment check?

Generally speaking, a unemployment or disability payments cannot be garnished unless the garnishment is for child support. According to the Department of Education Web page Facing Loan Default, "Once a loan is declared in default, you are no longer entitled to any deferments or forbearances." However, if you are not in default, the Dept of Education offers a number of deferments. See the Department's "Deferment Forms" and specifically the "Deferment Requirements for Unemployment."

I live in california and am currently getting garnished for child support for a little more over 25% of my net earnings. Employment Development Department just sent a judgment for a 25% garnishment to my net pay in addition to my child support. Can they take an additional 25% of my pay?

In general, California follows the federal restrictions on wage garnishments. Under federal law, a person can be garnished for 25% of their earnings, or "the amount by which his disposable earnings for that week exceed thirty times the Federal minimum hourly wage..." which ever is less. The federal minimum wage at this writing in October 2009 is $7.25 per hour. Therefore, the maximum that can be garnished is $217.50. However, there are many exceptions to the general rule. You can be garnished at greater than the federal maximum amount if the garnishment is for child support, school loans, or income taxes.

I being garnished by a credit card company. I have pleaded with them to make arrangements, but they told me that's no longer an option. What can I do to lift this writ garnishment off. It's cutting into my living expense, I'm barely living paycheck to paycheck with 3 kids..Please help

Unfortunately, you lost a great deal of leverage by not reaching a settlement with the creditor before the garnishment order was put into place. It is also unfortunate that you did not mention what state you reside in because each state has its own rules for garnishment. Contact your county bar association and ask for the name of the legal aid group that provides legal assistance to people in your area with no or low income. Make an appointment with an attorney or paralegal with that organization, and bring all of your letters, summons, and other documents relating to the debt and garnishment to your meeting. Then make yourself a promise to never allow a debt to go unresolved for so long so that you can avoid a garnishment in the future.

Hi Bill - this site has given me hope for breathing room. I'll try to make this brief - please feel free to edit post as you see fit: I just found out 9 of my 11 student loans are defaulting. I'm trying to figure out what to do to fix this mess. Here is my situation: I make approx: $35k/year, pay child support approx $600/month . Student loan sum is near 98K. Their monthly payment demands are impossible for me to do.

One default creditor was really breathing down my neck trying to get me to agree to a $400 per paycheck "direct withdrawal" agreement otherwise "they'd garnish my wages an additional 25% of gross earnings". I was reading your postings and one of the links you gave was Fact Sheet #30: The Federal Wage Garnishment Law, Consumer Credit Protection Act's Title 3 (CCPA) the US Dept. of Labor.

On that site - it is my understanding that child support garnishment will be taken first (rightfully so!) and then the difference of whatever 25% of my gross income is subtracting what they take for child support = the amount that can be garnished for student loans. Am I correct on this assumption?

For example: Say I have $1600 gross every two weeks. Subtracting federal and state taxes - lets say i have then 1450 gross left. $1450* 25% = $362.50. If my Child support takes $300 every paycheck (two weeks) - am I correct to understand that student loan collections can only take the remaining $62.50? Rather than the threats of 25% in ADDITION to my child support? This has huge repercussions in my ability to live and support my current family. Thanks for any clarification. Great website!

First, if you have federal student loan be sure to review the new Income-Based Repayment (IBR) program, and see the IBR calculator at the Dept. of Education.

Second, I recommend that you consult with an attorney in your state experienced in labor/employment issues, who will be able to advise you of your rights in your state.

Third, as Fact Sheet #30: The Federal Wage Garnishment Law, Consumer Credit Protection Act's Title 3 (CCPA) says, each state is free to develop more restrictive garnishment rules than the federal government allows. However, state rules do not apply to federal garnishment, such as garnishment for taxes or federal student loans. The page you cited states, "The Higher Education Act authorizes the Department of Education's guaranty agencies to garnish up to 10% of disposable earnings to repay defaulted federal student loans. Such withholding is also subject to the provisions of the federal wage garnishment law, but not state garnishment laws."

Fourth, garnishment rules are tricky and not always well understood by human resources and payroll people. If you believe your employer has withheld an improper amount from your pay, be sure to print the rules appropriate for your state and meet with the payroll person to resolve your concern.

Finally, all of what I have written above assumes you have a federal student loan. If you have a private student loan, see Private Loan Collections.

Hi Bill - thank you for your response! I was told by collectors that any loan in default is not possible to consider for that IBR. Which is how I even found out about loans going into default: I had called Sallie Mae to inquire about the IBR that I had read about. They forwarded me to their collectors and I was then told I had recently went into default. I'm not sure what or how to approach getting this all sorted. Im very limited financially. I have federal loans (subs and unsubs) for approx: $85K and private loans for $13K (which i was told yesterday on the phone that $13K is now $22K from 'collection fees'). Bill - Do you know if I could get these defaulted loans onto a reasonable payment program? Would trying to consolidate possibly work? I was told yesterday I could NOT consolidate until the accounts were out of default (by the collector). I just want to stop all these ridiculous fees from ballooning up and have direction on what I can do to stop the fees and start paying loans with payments that are reasonable for my income (Id really like the IBR plan). Also - one comment to your response Bill regarding your third point (USDept of labor: http://www.dol.gov/whd/regs/compliance/whdfs30.htm) If you scroll down to the 6th example of garnishment rules - it looks like they are saying that child support garnishment is considered first (up to 50%) - and then the difference between the support with holding and 25% of total gross is the limit of what federal student loan collections can obtain. Thanks again for your advice this site is awesome.

I understand you want a more definitive answer on the garnishment issue, and I am not willing to say more than I have because your question is so specific. My answer would cross the line from being an observation on the law in general into the realm of legal advice, which I will not give you. If you are unable to afford an attorney, I suggest you contact your county bar association and learn what organization in your area serves people with limited income. Make an appointment with the pro bono attorney group there, and bring all of your documentation regarding the garnishment to the meeting. They will be able to review all of the facts in your case, and give you a precise answer.

I live in Pensylvania, is it possible for a creditor to garnish my wages?

A creditor may not garnish the wages of a Pennsylvania resident. See State Consumer Protection Laws and Exemptions for details.

Hi Bill, I live in Arizona. Recently, my husband had a judgement to garnish non-earning from our bank account for a unsecured credit card debt. They have listed me as a third-party. However, the credit card was only listed in my husband's name and I have not signed any agreement to indebt me to this judgement. Does Arizona law allow them to garnish a mutual account? Also, if I am listed as a third party, does Arizona law allow them to garnish an account solely in my name?

Terms in your message puzzle me and make it impossible for me to make useful observations. A co-signatory on a credit card has liability to repay the debt if the primary signatory fails to do so. However, an authorized user of a credit card has no such liability. I have no idea what liability a "third-party" has because that term is not used customarily in this context. If so ordered by a court, a creditor may levy a joint account. I have no idea what a "mutual" account is.

my daughter who resides in NJ has won a judgement against an ex boyfriend for $1700.00. she has now learned he resides and works in Colorado. how does she garnish is paycheck for the money owed.

The debt must be domesticated in Colorado. The judgment-creditor (your daughter) must hire an attorney in Colorado to file the New Jersey judgment in Colorado. At this point, your daughter may want to consider selling the debt to a collection agent.

Due to a fatal communication between my wife and her lawyer, she ended up getting a default judgment issued against her in California Superior Court over an equipment lease. Without bogging down in the details of that, we've reached the point where the collection agency has just filed a motion to garnish my wages to pay the judgment since my wife does not have a regular salary. We've been told that we've lost all options for fighting the original judgment and have severed relations with the lawyer who helped us into the fix. But I do not want to go down on this score without having a day in court. So what are my options? Can I file a motion to counter theirs? Or will I get some say on the day of the hearing? Just so you know, I will not let this matter get to my employer, and will pay the full amount to avoid that. But I do not want to go down on this without a fight and am willing to take it as close to the edge as possible.

There is a way to dispute a garnishment order in California. See What is a Claim of Exemption for wage garnishment? and How do I file a Claim of Exemption for a wage garnishment?