By Atty. Crispin Caday Lozano
It is possible that a creditor could obtain a court order to garnish your wages. In other
words, they can take money right out of your paycheck to pay your debts. In some
cases, wage garnishments may take more than half of your paycheck.
Wage garnishment is a drastic step, often used by creditors that have no claim to any of
your property. Without any property or collateral to back up your credit card purchases
or medical bills, a creditor may file a lawsuit against you and ask the court to grant their
motion for your wages to be garnished. Depending on your debt, the court will assign a
percentage of your paycheck to be automatically deducted and sent to the creditor.
Oftentimes up to 25 percent of your disposable income could be taken away from you.
In cases of tax debt, much more could be taken out.
Wage Garnishment Laws
It’s possible that your spouse’s wages be garnished because of your debts. In
California, married couple’s debts and assets are considered community property. In
this case, your spouse’s wages might be at stake even if the credit card and the debts
are under your name.
As required by law, your employer must comply with the court order, and will be unable
to stop wage garnishment. However, you are also protected by the same law, which
says that an employer may not fire you because your wages are being garnished.
Wages are often garnished for the following reasons:
- Credit card lawsuit – Once a credit card account goes into default, and the
creditor decides it cannot collect, it may sell the debt to a debt collection
company. If the credit card or debt collection company is unsuccessful in
recovering the debt, then a lawsuit may be filed against the consumer in an
attempt to recover its losses. If the ruling in the lawsuit goes against the
consumer, a judgment may be issued to garnish property, bank accounts or
wages. - Tax liens: unpaid state and federal taxes – The IRS and State Taxing
Authorities have the power to collect back taxes by levying on taxpayers’ property
as a result of a tax lien. When a person owes back taxes, the IRS/State can
collect a lien on a particular taxpayer’s assets after meeting certain statutory
requirements, which attaches to all rights, title and interest of the taxpayer.
Once the IRS/State has a lien on all of a taxpayer’s assets, they may enforce it
by administratively levying his/her assets. As a collection tactic, the IRS/State
often imposes a wage garnishment, which means that they literally take money
out of every paycheck – often enough seriously jeopardizing an individual’s
lifestyle and making it impossible to maintain the same standard of living.
- Delinquent child support – Pursuant to child support enforcement laws in the
United States, statutes permit the use of a variety of types of garnishments to
collect past due child support, according to Find Law. - Delinquent spouse support (alimony) – There is numerous ways to enforce an
order for spousal support or alimony, including entry of a money judgment and
wage garnishment. However, the availability these enforcement tools and how
they are used are controlled by state laws and/or the rules of the courts in your
area.
Wage garnishment will only stop if: - Your debts are settled
- Automatic stay in bankruptcy
stops the action
If you are already facing financial disaster, garnishment can make it harder for you to
support yourself and your family. By filing either Chapter 7 or Chapter 13
bankruptcy, you have the power to stop the action. Both Chapter 7 and Chapter 13
bankruptcy may stop wage garnishment. In the case of a Chapter 13 bankruptcy,
the garnishment will stop for several years as you work through your repayment
plan. In a Chapter 7, each state’s exemptions provide protections against wage
garnishment.
Note: This is not a legal advice and you need to speak to an attorney. The Law
Offices of Crispin C. Lozano has 22 years of experience in bankruptcy cases.
Bankruptcy Basics
- Bankruptcy will actually improve your credit within one year because
your unsecured debts are discharged. Although the bankruptcy will
be in your records for 10 years, not filing bankruptcy will make your
credit even worse until most your debts are paid. - If you are being sued by your creditors, most money judgment can be
eliminated in bankruptcy. - Collection actions continue and you can be sued if you are in debt
settlement. - Chapter 7 will eliminate all unsecured debts. If you are near
retirement age, you must eliminate most of your debts.
Success Stories
For the month of July 2022, we received approvals from USCIS six naturalization
applications, three Fiancée visa petition, five removals of condition on residence
and four adjustment of status applications.
If you have immigration problems the Law Offices of Crispin C. Lozano can help
you find a solution before your problem gets worse which could lead to
deportation and family separation.
Chris Caday Lozano, Esq. is an active member of the State Bar of California, the
American Immigration Lawyers Association and San Francisco Trial Lawyers. He
practices immigration law, bankruptcy, personal injury and income tax
representation since June 1999. His contact phone is 1-877-456-9266, email:
[email protected] Website: www.crispinlozanolaw.com/ with officers in Hayward
and Cerritos, CA.
