Dear (Creditor's Name), I am writing to formally request the cessation of wage garnishment related to my account number (Your Account Number). Due to (briefly explain your situation, eg, ``a recent job loss'' or ``significant financial hardship''), I am unable to meet my current financial obligations.
Once there is a garnishment, you can't get out of it without going back to court. The only thing that might do is reduce the pay day deduction due to financial strain. The only way to stop the garnishment altogether is to pay off the debt.
Ask the judge to set aside (cancel) the judgment
Setting aside the default requires filing a motion. This is complicated and most people need assistance from a legal expert to do it correctly. Contact your local legal aid, county law library, court's Self-Help Center to see if they help.
You can make a settlement to deal with the debts subject to the garnishment. You will also deal with other outstanding debts you may have, giving you a fresh financial start. A consumer proposal allows you to keep any assets you own including a home.
You Lose: If the credit card or debt collection company wins, it will ask the judge for authority to collect its money. Your wages could be garnished. Liens could be placed on your property or forced into a sale.
If you owe money to a credit card company, for example, they must first receive a judgment against you in court before they can freeze your bank account. This means that they have to serve you with papers notifying you that they are suing you.
Some employers have stopped wage garnishments upon the filing of the bankruptcy case, however, most will want something from the sheriff's department to stop it. Once all the factors are taken into account, it takes about 7 days to 4 weeks to release a wage garnishment after it is filed.
Ordinary garnishments
Under Title III, the amount that an employer may garnish from an employee in any workweek or pay period is the lesser of: 25% of disposable earnings -or- The amount by which disposable earnings are 30 times greater than the federal minimum wage.
A motion to quash the writ of garnishment asks the judge to nullify its order, to a garnishee, of seizure or attachment of property of a defendant.
Bank accounts solely for government benefits
Federal law ensures that creditors cannot touch certain federal benefits, such as Social Security funds and veterans' benefits. If you're receiving these benefits, they would be exempt from garnishment.
Contact a lawyer if you are sued, or if someone has obtained a judgment against you. You might be able to work out a compromise or settlement by negotiating with the creditor or debt collector before a court makes a judgment. There are several ways to find a lawyer for a debt collection lawsuit.
If you win your lawsuit but the responsible party has no money, they are still legally required to pay you. In the meantime, legal funding or pre-settlement lawsuit loans can help you manage expenses like mortgage payments and other financial obligations.
Debt collectors are not permitted to try to publicly shame you into paying money that you may or may not owe. In fact, they're not even allowed to contact you by postcard. They cannot publish the names of people who owe money. They can't even discuss the matter with anyone other than you, your spouse, or your attorney.
Unpaid credit cards fall into the “civil debt” category and are not punishable by jail time. However, criminal offenses related to financial affairs, like tax evasion, could land you in jail. It's important to know that ignoring judgments against you could result in serious legal consequences, including jail time.
Surveillance: You can provide surveillance footage showing you were not served at the alleged date or that the service was improper. Mail Records: If there's no mail delivered to you or if you haven't signed the receipt. It can indicate improper service.
Do I Have to Go to a Wage Garnishment Hearing? If the court provides for a garnishment hearing, you must attend that hearing to protect your wages. The hearing date and time are either provided automatically with the initial garnishment notice or given to you later after you've filed your objection.
In theory, you can recover garnished wages, provided that you listed them in your bankruptcy papers, exempt them, and the trustee assigned to the case takes no action to try to recover them. In other words, the trustee abandons any claim against those garnished wages.
Reversal can occur when the decision of a court of appeal is that the judgment of a lower court was incorrect. The result of reversal is that the lower court which tried the case is instructed to vacate the original judgment and retry the case.