The most common method used by judgment creditors to enforce judgments is wage garnishment, in which a judgment creditor would contact your employer and require your employer to deduct a certain portion of your wages each pay period and send the money to the creditor.
However, several states, including Texas, Pennsylvania, North Carolina, and South Carolina, do not allow wage garnishment for the enforcement of most judgments. In several other states, such as New Hampshire, wage garnishment is not the "preferred" method of judgment enforcement because, while possible, it is a tedious and time consuming process for creditors. In most states, creditors are allowed to garnish wages between 10% and 25% of your income, with the percentage allowed being determined by each state.
There are indeed circumstances that can lead to an Illinois court ordering a person’s wages to be garnished, even if that person has relocated to another state.
To learn more about the consumer protection laws in each state, see the Bills.com resource Collection Laws and Statute of Limitations. I realize you wrote you are a Georgia resident, but readers in California should read Wage Garnishment & Payday Loan in California, and Minnesota residents should read Minnesota Garnishment to learn more about garnishment in those states.
To accurately assess your legal liabilities and the potential consequences, consult with a qualified attorney in your state.
Remember, when going through a divorce it is important to consider how your financial needs and goals will be impacted, and Bills.com can be a one-stop resource for finding solutions to save you money. In addition to wealth of articles on topics like improving credit, consolidating debt, and refinancing a mortgage, we offer an online form where you can apply to be matched with pre-qualified lenders and financial service providers. Simply go Bills.com and use the Saving Center tool to find a provider in seconds.
I wish you the best of luck with your situation.
I hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
Iron Ridge, WI | January 27, 2011
January 27, 2011
It may be possible for you to negotiate a reduced-balance settlement. You have little to lose by trying. If you speak with them, be cautious. I think the only reason the job you are still working has not received the garnishment order is that the law firm doesn't know where you work. They may ask you, during any settlement negotiation, where you work, which could lead to a garnishment at your current job. If you successfully negotiate a settlement, don't make a payment until you have the agreement in writing, making sure that it specifies that your settlement pays off in full your debt and ends all claims the creditor has against you.
Lastly, if you obtain a settlement, be aware that there is a taxable obligation for forgiven debt. Speak with a tax professional, to see if you will be required to declare the forgiven debt as income and pay taxes on it or if you can use the IRS Form 982 and not declare the forgiven amount as income.
April 19, 2010
April 18, 2010
Loading more commentsSince you don't have facebook, please provide us with your location and a valid email address so we can answer it. Without a valid email address,we can't reply. (Go back to login with Facebook)
Due to the high volume of comments received, we cannot publish and/or respond to every comment received. If you have a specific question, we recommend you search our site for an answer before commenting.
* Bills.com will not share, sell, lend, or make public your e-mail address. We reserve the right to delete any questions or comments that violate the Bills.com terms of service.
We get a lot of comments! To help us show our boss that this is a valuable service, so we can keep providing it, we ask you to do 2 things before commmenting:
Log in
Like us
Submit your comment!
Due to the high volume of comments received, we cannot publish and/or respond to every comment received. If you have a specific question, we recommend you search our site for an answer before commenting.
* Bills.com will not share, sell, lend, or make public your e-mail address. We reserve the right to delete any questions or comments that violate the Bills.com terms of service.
Thank you for your comment. Your comment will be posted shortly.
Comments (4)