When you find yourself in debt and unable to stay current on your payments, you may find yourself receiving less money in your paycheck. This can happen because of wage garnishments that are allowable by law. When this happens, it can be frustrating because it can further reduce your ability to get out of debt.

What is Wage Garnishment?

Sometimes known as a “wage attachment,” a garnishment is a legal way for a creditor to recover money owed to them directly from your pay. Essentially a court orders your employer to withhold money from you and send it to your creditor instead.

Why Does Wage Garnishment Happen in Georgia?

When you fall behind on your payments, wage garnishment gives your creditors an option to try to recover their money. By obtaining a court order, creditors are ensured they will receive money directly from your employer that will be applied to the debt you owe.

How Long Can Wage Garnishment Last in Georgia?

Court-ordered wage garnishment typically lasts until the debt is paid off or until you take some legal steps to stop the garnishment, such as claiming an exemption with the court or working to demonstrate a legitimate hardship created by the garnishment.

Who Can Garnish my Wages in Georgia?

Any creditor to whom you owe money can garnish your wages. Sometimes a court order is required. For example, if you owe money on a credit card or a medical bill, they cannot garnish your wages without suing you and getting a court order for wage garnishment.

By contrast, some creditors do not need to have a court order to be able to get a wage garnishment. These include the federal government if you owe back taxes, federal student loan creditors, or those to whom you owe child support or alimony.

How Much Money Can a Creditor Withhold?

Under Georgia law, there are limits to how much money can be held back from your check to pay a creditor. In a money judgment against you, a creditor can take the lessor of:

• 25% of your disposable earnings for that week for most cases, however, if the judgment is because of a private student loan, then 15% of your disposable earnings is the limit
• Any earnings that exceed $217.50 per week, or 30 times the federal minimum wage per hour

Disposable income is defined as the amount of money remaining after your employee withholds mandatory deductions from your check such as federal and state taxes.

Limits for Child Support, Student Loans, and Taxes in Georgia

The amounts of money that can be garnished from your paycheck for unpaid child support, federal student loans that are in default, and unpaid taxes are different than the limits for creditors who require a judgment against you.

Child Support Limits

All court orders for child support contain an automatic income withholding order. But if you get behind in child support payments, the other parent can also obtain a wage garnishment order from the court.

Federal law imposes the following limits for this kind of wage garnishment:

• 50% or your disposable earnings if you are currently supporting a spouse or child who is not part of the order
• 60% of your disposable earnings if you have no other spouse or child you are supporting
• An additional 5% can be taken if you are more than 12 weeks behind in your child support payments

A wage garnishment order from the court can be obtained by the other parent and requires no formal lawsuit against you.

Limits for Unpaid Taxes

The federal government can garnish your wages if you owe unpaid taxes. This is referred to as a “levy” and does not require a court judgment. The IRS bases the amount of the levy on how many dependents you have and your standard deduction amount.

States can also hold levies against you and have their own formulas to determine the amount. The federal government and the state will send you a notice before they begin to garnish your check.

Limits for Federal Students Loans in Default

The U.S. Department of Education or any collection agency that represents it can garnish up to 15% of your disposable income. Neither the Department of Education nor an agency collecting on their behalf is required to get a judgment to garnish. They are required to give advance notice before the garnishment begins.

Is Any Income Exempt from Garnishment in Georgia?

Federal law provides that certain forms of income are exempt from garnishment. In addition, the state of Georgia also specifies certain forms of income as exempt from garnishment. Broadly, these include:

• Social security benefits including disability and survivor benefits
• Funds or benefits from certain pensions and retirement accounts
• Certain state pension income
• Veterans’ benefits including pensions, disability payments, retirement pay, and survivor benefits.
• Workers’ compensation benefits
• Unemployment benefits
• Social benefits including old-age assistance, Medicaid payments, aid to the blind or disabled
• Child support paid to you
• Certain insurance and annuity income
• Railroad benefits including retirement, annuity, and disability benefits
• Other miscellaneous benefits

Federal and Georgia state law does provide some protection by shielding some forms of income from being subject to wage garnishment. An experienced attorney can help you determine what benefits you may apply to your situation.

Do I Have Any Rights in Georgia?

As a Georgia resident, you have the right to be notified if you are being sued over a debt. In addition, you can ask to have the money judgment overturned or vacated if you did not receive notice of the suit or have some valid reason for not responding.

If a creditor does obtain a money judgment against you, you have a right to be notified of the garnishment before it begins. The creditor must provide you with a copy of the garnishment affidavit, the summons, and other notices that make you aware of your rights under the law.

If garnishment is already underway, you have the right to file a written objection. A valid reason for filing an objection could be that you’ve already paid the debt. Other reasons include other reasons you don’t owe the money or that the money is exempt under federal or state law.

Employer Responsibilities in Wage Garnishment

If your employer receives notice of court-ordered wage garnishment, they have the responsibility of deducting the garnishment amount and sending it to your creditor. State and federal law provide you with some protection.

If you have only one wage garnishment, an employer cannot terminate you. However, if you have more than one wage garnishment, federal law will not protect you from losing your job.

Filing an Objection to Wage Garnishment in Georgia

When you receive notification of a money judgment against you that results in wage garnishment, you have 30 days to file a written objection. When you receive your wage garnishment notice an objection form is usually included. You can also request this form from the court clerk.

The objection form will typically provide you with information about filing your objection such as the last date you can file, where to send the form, and the date and time the court will hear your objection. In addition, the notice will also tell you whether your objection must be in writing and the information required for your objection to be considered.

Your written objection should be as detailed as possible. Include your case number and title, for example, Payday Loan Company vs John Smith. Clearly state the reason you believe that you qualify for exemption from the garnishment. If you don’t give your reason on the form, the court will still accept your objection. Once your objection form is received, you will be notified of when and where your hearing will be, and you’ll need to go to court.

At your court hearing, you can only argue about the amounts specified in your garnishment notice. You will not be allowed to argue about the validity of the garnishment. You can present pay stubs and bank statements as proof you don’t have enough income to pay your expenses after the garnishment. If the court accepts your objection, it may lower your garnishment or could cancel it. If you don’t have documentation, you are unlikely to get relief.

The most important thing to remember is that, when you receive a notice of wage garnishment, you take time to read any paperwork that accompanies the notice. It will give you details that you will not want to overlook and may even explain some options.

Bankruptcy as a Means of Wage Garnishment Relief in Georgia

If you are subject to wage garnishment and cannot get relief by filing an objection, you do have alternatives.

Filing a petition for bankruptcy under Chapter 7 or Chapter 13 will trigger an automatic stay from the court. This means creditors must immediately stop garnishing your wages. Additionally, a stay from the court means your creditors are not allowed to have any contact with you.

For you to get the fastest protection from wage garnishment, you or your attorney must file a Notice of Bankruptcy Filing with the court where the garnishment action was filed.

There are times when you can recover money that has been taken through garnishment. If more than $600.00 has been taken from you within 90 days of your bankruptcy filing, you can recover that money. Your attorney will take the necessary steps for you to recover your money such as filing certain forms with the court.

Enlist the Help of an Experienced Attorney in Georgia

When you are working against wage garnishment and trying to find a way out, the experienced attorneys at Morgan & Morgan can help you determine a course of action that can help you find relief. Contact one of our attorneys today for a no-obligation consultation to see how we can help you.