Garnishment is a method creditors can use to collect money from a borrower after they have obtained a judgment against him/her. A judgment must be enforced in order for you to receive payment, and a garnishment is an effective collection tactic. There are two main types of garnishment – wage garnishments and non-wage garnishments. This blog will focus on wage garnishments. Please read tomorrow’s blog for information on account garnishments.
A wage garnishment occurs when a creditor serves the judgment debtor’s employer with garnishment papers which demand that the employer deduct a specified amount from all of the debtor’s paychecks until the debt is paid in full. The employer must file an answer regarding the debtor’s employment status and information regarding his/her payment amounts and schedule. After certain procedures are followed, the employer will deduct the amount appropriate amount from the employee’s paycheck and it is delivered to the creditor. If your employer fails to comply with the garnishment order, they could be held liable for the debt that is due.
A wage garnishment is limited to a percentage of the employee’s “disposable earnings” under federal law. Your disposable earnings are the amount that is remaining after the required deductions (like taxes) are taken out of your paycheck. In Arizona, a creditor may only garnish the lesser of 25% of a debtor’s non-exempt disposable earnings or the amount of weekly earnings that exceed thirty times the hourly minimum wage. It is important to note that sources of income such as social security benefits cannot be garnished.
If you are interested in learning more about wage garnishments, contact Windtberg & Zdancewicz, PLC today!
The attorneys at Windtberg & Zdancewicz, PLC, provide clients with experienced legal representation. We handle many types of business disputes on behalf of both creditors and debtors. Our attorneys handle cases from pre-litigation negotiations through litigation, obtaining and enforcing judgments to collect what our clients are owed. We are experienced in creditor’s rights including garnishments, charging orders, attachment, property execution, trustee’s sales, foreclosures, judgments, judgment collection, domestication of foreign judgments, and creditor’s issues in bankruptcy cases. If you need assistance, or are interested in learning more, please contact us at (480) 584-5660.