We all know that debt is a growing problem in Georgia and around the US. Many individuals have more debt than they do savings, which puts them in perilous financial conditions. The deeper you get into debt, the harder it is to pay even the minimum payments, which can lead you into a situation where you’ve defaulted on a loan or two.

If you’ve gotten too far behind, you may soon have no choice but to pay one or more creditors. Those creditors can take the funds through legal wage garnishment. If you’re already struggling to pay your bills, wage garnishment can make a bad situation worse.

What can you do to stop wage garnishment in Georgia? Do you have any recourse? Let’s look at some facts about wage garnishment, including how to stop garnishments if you can.

What Is a Wage Garnishment?

You have probably heard the term wage garnishment before, but it may seem like an intangible thing that only happens to other people. The fact is that it can happen to you. Wage garnishment allows your creditors to legally take money from your paycheck to satisfy your debts. Most creditors must go through the court system and obtain an order that requires your employer to withhold a specific amount each month to pay to your creditors.

Wage garnishment is governed by state laws with some federal oversight. The Consumer Credit Protection Act (CCPA) puts limits on how much of your earnings can be garnished. Typically, garnishment is only a concern if your debt is at least six months behind and you have made no attempt to work with the creditor to create a repayment plan.

Who Can Garnish Your Wages in Georgia?

There are four kinds of wage garnishment in Georgia, but only two of those relate to consumer debt. A garnishment can be a “one-shot” or continuing garnishment. Any creditor, debt buyer, or debt collector who obtains a valid judgment against you can garnish your wages.

Some of your debts are considered special debts, and the creditor won’t need a judgment to garnish your wages to collect the debt. Debts that fall into this category include federal debts like federal student loans and tax debts. These debts are governed by federal laws. State taxes, alimony, and child support also fall into the category of debts that do not require a judgment for garnishment.

What Percentage of Your Wages Can Be Garnished?

The amount that can be garnished from each paycheck is governed by state and federal law. Your creditor can’t take more than the judgment amount plus interest and fees. Georgia law mandates the percentage that a creditor can garnish from your wages.

In Georgia, a creditor possessing a garnishment judgment against you can garnish whichever is less between

• 25% of your disposable earnings each week, OR
• The amount beyond $217.50 that you have in disposable earnings each week. That is currently 30 times the federal minimum wage, and that formula is dictated by federal law. If you make less than $217.50 a week, your wages are safe from garnishment.

What are disposable earnings? That’s the amount left after the mandatory deductions are made. In Georgia, those deductions are federal, state, and local taxes, Social Security, and your portion of unemployment compensation insurance Georgia. If the deduction isn’t required by law, it isn’t part of the disposable income calculation.

The calculation is relatively simple. First, 25% of your weekly income is calculated. For example, if you make $400 a week after legally mandated deductions, 25% of that would be $100.

Next, you subtract $217.50 from your disposable income. In our example, you would subtract $217.50 from $400, which would leave you with $182.50. Now, you compare the 25% with what you got in your subtraction formula. The smaller number, in this case, $100, is the maximum a creditor could garnish from your wages in a week.

What to Do if You Are Facing Wage Garnishment in Georgia

When you are facing wage garnishment, there are some things you can do to let the courts know that you are willing to work out alternatives to garnished wages.

1. Your first step is to contact the creditor or collection company and request proof of the debt. After all, creditors can make mistakes, and identity theft is, unfortunately, a reality, so you want to be sure the debt is yours.
2. Don’t ignore a summons to court. You can almost guarantee that the court will issue a garnishment order if you are a no-show at a hearing.
3. Attempt to avoid wage garnishment in the first place. Look into debt settlement or debt consolidation plans in an attempt to find alternatives to garnishment.

Once a garnishment is started, it continues until one of two things happens: either a court order is issued to stop it, or you pay the debt in full. It’s easier for you to avoid garnishment, if possible, by setting up satisfactory repayment plans with your creditors.

Can You Be Fired for Having a Wage Garnishment?

Wage garnishment orders are an inconvenience for employers. There are some employers who might be tempted to end your employment rather than adhere to a garnishment order. However, federal law prevents that from happening if you only have one garnishment. More garnishments than that, and the law doesn’t protect your job.

Your Rights as a Georgia Resident

You have certain rights when it comes to wage garnishment in Georgia. You have a right to be notified of any pending lawsuits over debts. If you weren’t notified or have a valid reason for not responding to a notice, you could ask for a judgment to be overturned.

You have a right to notification of garnishment before it begins. Your creditor must provide you with specific information about the garnishment. Among that information is a copy of the summons, the garnishment affidavit, and any other notices that are designed to make you aware of your legal rights.

If the garnishment has already started, you have the right to create and file a written objection. One reason that is considered valid for filing objections is that you have already paid the debt. Another reason for an objection is that you don’t owe the money; the debt isn’t yours, or state or federal law makes the money exempt.

Stopping a Wage Garnishment in Georgia

You have two options for stopping a wage garnishment in Georgia once you’ve received notification of a judgment against you. The first is to file an objection. You will have 30 days to file a written objection to the garnishment. Usually, you will receive a form along with your wage garnishment notice that you use to prepare your objection.

You will receive information about whether your objection must be made in writing and what information you must include if you want the objection considered. The objection form that’s included with your notification should provide you with information about how to file, where to file, and the last day you can file your objection. It will also give you the date that the court will hear your objection.

Make your written objection as detailed as possible, including your case number and the title of your case. Also, state why you believe you should be exempt from garnishment. Once the court receives your objection form, your hearing will be officially scheduled, and you will need to appear in court.

At the court hearing, you can only discuss the amounts of the garnishment order. Paystubs and bank notices can be used to prove that your income will not cover your expenses if your wages are garnished. If the court accepts your objection, the garnishment could be lowered or canceled. Without documentation proving your case, you are unlikely to receive a favorable outcome to your objection.

When you receive notification of a wage garnishment, you need to take the time to read any paperwork that has been included with the notice. If you don’t take the time to read the paperwork, you will likely miss the details you need, and you could miss options to having the wages garnished.

Your second option for stopping a wage garnishment in Georgia is to file for relief through bankruptcy. Filing a petition for either Chapter 13 or Chapter 7 bankruptcy will place an automatic stay on collections of any kind, including garnishments. The creditors also must refrain from contacting you in any way.

You or your attorney should file the Notice of Bankruptcy Filing with the court that handled the original garnishment action. This is the quickest way to get a stay ordered and stop the garnishment.

Sometimes, you can get garnished money refunded to you. If over $600 was garnished within 90 days of you filing bankruptcy, you could have that money refunded. Your attorney will file the appropriate forms with the court to begin the recovery process for those funds.

Get in Touch with Our Wage Garnishment Lawyer Immediately

Whether you choose to file an objection to garnishment or feel that bankruptcy is your best option, you should contact a qualified attorney to assist you. Contact the experienced attorneys at Morgan & Morgan to request a consultation regarding your options. They can help you find the correct course of action when you are facing wage garnishment in Georgia.

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