Question about wage garnishment?

[momof2boys]

Hi everyone, so we just found out today that one of are personal loans here in town has filed with the courts, im assuming to try and garnish my husbands wages. We havent paid them since July, and the loan is only for around $1,100.00. They said we could be getting served tomorrow..so we are wondering what that means...is someone going to personally come to the door and serve us or will we recieve them in the mail? Im assuming someone will come down here. We havent even retained a lawyer yet...we are just so bad off that even $150 has been hard to scrounge out. Im pregnant with are second child and due in about a month and half, my hubby is even working a second job aside from being in the military. Theres just not enough money..even though we are not paying are bills We are more than likely going to retain a lawyer November 15th (we already know which lawyer we are going with and have filled out all the paper work he sent) But we are not going to end up filing till January/February with income tax...we just wont have the money sooner...But we are wondering is what exactly can happen when we get served, we are very suprised by this as it has only been about 5 months since we have paid them and they havent even hired an outside company to try and collect. In New Mexico it says they can garnish up to 25% of disposable income..what exactly does this mean? And just because we retain a lawyer doesnt really mean anything right...not until we file? Thanks in advance.

[jp2861]

The first thing I would do is find out if New Mexico has a law that protects Veterans pay. I know some states protect Veterans Benefits such as retirement pay. I'm not sure how it works for active duty, but you may want to check it out. That portion of your income may not be legal to be garnished.

[treehugger1]

In general, you will first be served; in some states this will be done at your door (by sheriff deputy or process server), or some states probably allow mail service for small claims. You will probably have 14 - 20 days to respond to a small claims summons. If you don't respond, the creditor can then file for the default judgment. In most states they will then need to file for a writ of garnishment. The writ then needs to be served on the garnishee (employer.) this can be done a variety of ways; sheriff's department, clerk of court via mail, or an attorney licensed with your state bar. Lot's of different methods depending upon state law/statute. I would guess that from the time you are served (small claims) until a writ of garnishment is served on the employer the time frame can be a soon as 30 -45 days. In many states small claims-to judgment-to garnishment can occcur rather quickly. On the other hand, I don't think it is uncommon for a small claims creditor to get the default judgment (you don't bother to answer or request a hearing) and wait a few weeks to see what you will do. However, once the creditor/collector has the judgment, they can move very quickly. Timelines vary with states and counties, depending upon their backlogs, etc.

The thing to be aware of is that it is likely that you won't even know about the wage garnishment until your paycheck comes up short. In addition, a judgment often leads to freezing bank accounts, etc. Be careful...

[treehugger1]

if you do receive a notice of garnishment, you will possibly receive a form to list your exemptions from garnishment. read your state laws and list every possible exemption you are allowed. For many states, general debtor exemptions align with the same exemptions allowed in bankruptcy. Again, all of these vary by state.

[momof2boys]

So aside from garnishing wages they could also freeze are bank account? Why would they do this? Even for a $1,000 loan? Well we need that money in the account...but im assuming switching accounts would not be any good. Heres some info i found about garnishment in New Mexico....



New Mexico Law provides for continuing wage garnishments. The employer must withhold up to 25% of disposable earnings from each paycheck beginning on service of the writ and continuing until the judgment is paid in full.

If previous garnishments are in effect when the writ is served, the earlier writ(s) must be satisfied before withholding begins on the later writ. Up to 50% of disposable wages is subject to a garnishment for child support, making subsequent garnishments for debts ineffective.

Pre-judgment garnishment of wages is prohibited.

Im not sure what that means..Pre judgment garnishment of wages part...does that mean they must have a judgement before they can garnish?

[treehugger1]

I believe some states allow for garnishment of wages prior to a judgment being assigned. First the creditor/collector must be granted the right to pursue legal collection options and then file for a judgment. After the judgment, they can take court-sanctioned action to recover their money (bank account levy, wage garnishment, etc.) I believe the reason that some states allow pre-judgment action is to allow creditors/CA's access to assets that a debtor might try to dispose of or move elsewhere.

[jwillia2000]

I am going through garnishment now and it really sucks. They have been taking 400
dollars each paycheck. Thought seriously about bk but i would have to go 13 and didn't
want 5 years of garnishments. In oklahoma its 25% as well, after taxes. the writ is only good for 180 days. If you file for an exemption be sure you do it within 5 days after recieving your garnishment papers or you can't. or I couldn't here. I didn't even know i was being sued. I got nothing until the garnishment papers from my employer. Finally i had enough yesterday after 4 months and just called the people who are suing me and told them i am a single mom, no child support and can't make my bills and will have to file bk if i can't get garnishment lowered. Well they cut it in half. now only 200 a paycheck instead of 400. Guess bk were the magic words. There is a undue hardship exemption here in OK. On jan 1 the 180 days are up and if they refile for garnsihment I can file for that because i suport a family. Look up your state exemtions and see what they are. hope everything works out for ya.