How to Change Wage Garnishment

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methods

1Negotiating with the Creditor

2Claiming an Exemption

3Filing an Objection

4Challenging the Judgment

5Getting Credit Counseling

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If you have a judgment against you, such as if you get behind on credit card payments and the credit card company sues you, that creditor can garnish your wages to enforce the judgment. Unfortunately, garnishment can create quite a hassle with your employer, and if you have more than one garnishment in a year you may lose your job. You can stop a wage garnishment by filing bankruptcy, but that's a tremendously time-consuming and stressful process. However, there are several options available for you to change your wage garnishment – without filing for bankruptcy.

Steps

Method 1

Method 1 of 5:

Negotiating with the Creditor

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   Review the garnishment notice. The notice you received about the garnishment should contain contact information for the creditor who took out the garnishment.

   • Make a note as well of any deadlines included on the notice. You may have a limited time to contact the creditor before the garnishment begins.
   • Typically you'll have more ability to work out a deal with the creditor if you can get ahold of them before the garnishment begins. If you wait until the creditor has already garnished money from two or three paychecks, they probably will be less willing to talk to you.
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   Contact the creditor. Use the information from the garnishment notice to call or write to the creditor and begin negotiations to remove the garnishment.

   • Keep in mind that many creditors prefer to receive voluntary payments than to go through the hassle of garnishment, which typically is viewed as a last resort.
   • You may be able to negotiate a payment plan that impacts your finances less and doesn't carry the stigma the garnishment would.
   • Find out if the company is willing to accept automatic debit of the payments from your bank account, which provides a little more assurance that the payments will be made on time.
   • Take notes if you're talking to a customer service representative on the phone. Before you end the call, read your notes back to the representative and ask him or her to confirm that they are accurate.
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   Offer a lump-sum payment. If you have the ability to do so, a lump-sum payment – even if it doesn't cover the total amount you owe – may be enough for a creditor to remove a garnishment.

   • Keep in mind that the garnishment, which the creditor has already gone through the trouble to get, is already providing the creditor with a monthly payment. Typically you'll have difficulty getting a creditor to agree to lower monthly payments to pay off the debt, unless you're willing to offer a decent lump-sum payment up front.
   • For example, you may have or be anticipating a tax refund that could cover a significant portion of the debt. Paying off that amount might make the creditor more willing to work out payment arrangements with you directly and cancel the wage garnishment.
   • Even if you don't have the money to pay off the debt, you may be able to get a loan from another bank or credit card company, or sell something of value to raise the funds.
   • At the least, paying off a chunk of the debt means the garnishment will end sooner, even if the creditor doesn't agree to cancel it. The creditor also may agree to change the wage garnishment by taking less out of each paycheck.
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   Get any agreement in writing. If you reach a deal with the creditor, make sure you have written confirmation in the event the garnishment continues.

   • Written acknowledgement of your agreement from the creditor also can protect you if the creditor later claims you agreed to larger payments than you did, or settles the debt for a lesser amount and then claims you owe more.
   • Once the agreement is finalized and you have written proof, you may want to follow up to make sure the creditor actually has stopped the garnishment.
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Method 2

Method 2 of 5:

Claiming an Exemption

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   Check your state's law. Each state provides certain exemptions for some wage earners to prevent too much of your income from being garnished.

   • For example, most states have a head of household exemption that protects all of your wages from garnishment if you provide more than 50 percent of the support for a child or other dependent.
   • Additionally, all states limit the percentage of your wages that can be garnished, provided that you make below a certain amount. The maximum percentage of your wages that can be garnished typically will be between 15 and 25 percent.
   • Some states allow exemptions for financial hardship generally, without requiring you to prove that you provide over half of a dependent's support. However, you must provide proof of your expenses and your inability to pay your necessary bills without the money the creditor wants to garnish.
   • You can contact the clerk of the court that issued the garnishment order to find out what options are available in your state.
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   Gather information. If you believe you fit into one of your state's exemptions, you typically must provide documentation that supports your claim.

   • For example, you must gather income statements as well as bills or other documents that show your basic living expenses. These documents may include utility bills or rent statements.
   • The exemption law you reviewed typically will include a list of what expenses can be included. Keep in mind that expenses such as cable or internet may not be considered basic living expenses under the law, even if they are things you feel you cannot live without.
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   Fill out a claim of exemption form. You can find a form by visiting the clerk's office of the court where the judgment was entered.

   • Some courts may have the form available online – just search for the name of the court that issued the garnishment order.
   • The form requires you to enter information about yourself and the garnishment. Typically you must then select the exemption that applies to you from a list. You may be required to include additional documentation to support your claim.
   • You also may need the name of the creditor and the case or file number of the underlying judgment that gave rise to the garnishment. This information should be located on your garnishment notice.
4. 
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   File your claim of exemption form. When you've completed your form, you must take it to the clerk's office of the court where the judgment was entered.

   • When you file your form, the clerk will set a date and time for your hearing. If you don't attend your hearing, your claim will be dismissed.
   • Make copies of your form after you sign it but before you file it. The clerk will keep the original, but you'll need at least one copy for your records.
   • In many cases you won't have to pay a filing fee to file a claim of exemption. If a fee is required, you might want to ask the clerk if you can fill out an application for a fee waiver. If you meet certain income requirements, the court will waive any required fees.
5. 
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   Attend your hearing. Typically the court will hold a hearing so a judge can listen to both sides and determine whether to grant you an exemption from wage garnishment.

   • Bring your documents with you to court that prove your income and expenses so you can show them to the judge.
   • To change your wage garnishment, you must prove to the judge that the exemption applies to you. If he or she agrees, your garnishment will cease. Keep in mind, however, that this doesn't mean you no longer owe money to the creditor – it just means that the creditor cannot get that money by garnishing your wages.
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Method 3

Method 3 of 5:

Filing an Objection

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   Review the original garnishment order. Unlike exemptions, objections typically are based on the failure of the creditor to follow the correct legal process to have your wages garnished.

   • Your garnishment order may include instructions on how you can object to the garnishment and the time frame you have to do so.
   • Objections typically must be filed before the garnishment begins. If the creditor has already started garnishing your wages, you may have to look at other options to change the wage garnishment.
2. 
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   Search for forms. Most courts have a form you can fill out to object to wage garnishment, available from the clerk's office that issued the garnishment order.

   • In some jurisdictions you'll receive a form to fill out for an objection along with the garnishment order.
3. 
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   Gather information. If you have an objection to the wage garnishment, typically you must present documentation that supports your argument that the creditor did not garnish your wages properly.

   • For example, federal law only allows garnishment of 25 percent of your paycheck, or the amount of your paycheck that exceeds 30 times the federal minimum wage – whichever amount is less. If the creditor is garnishing too much money, you can file an objection.
   • Keep in mind that certain types of garnishments, such as for child support, alimony, or unpaid IRS taxes, can exceed those limits under some circumstances.
   • Another reason to object to a wage garnishment is that the creditor didn't follow proper garnishment procedures. To object for this reason you'll have to review your state law to find out what procedure is required, then compare the actions of the creditor in your case.
   • For example, your state may require the creditor to give you at least two weeks notice before the garnishment begins. If you received your notice yesterday and the order states garnishment will begin at the end of the week, you could file an objection because you didn't receive proper notice.
4. 
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   File your objection. Once you've completed your forms, take them to the clerk's office that issued the garnishment order.

   • There typically won't be any fee required to file your objection. If your court charges a fee, you may be eligible for a fee waiver if you meet certain income requirements.
   • You may want to contact the clerk's office before you file your form to see how many copies you need to make. You'll need at least one copy for your records, plus copies to have served on the creditor who filed the garnishment.
   • Depending on the jurisdiction, you also may be required to have the creditor served with your objection. The clerk will tell you if you need to take care of this or if it will be done for you. If you have to do it yourself, the easiest thing to do is mail it using certified mail with returned receipt requested.
5. 
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   Attend your hearing. The court may have a hearing so a judge can hear both sides and decide whether to sustain your objection.

   • Keep in mind that if you don't attend the hearing, the judge will overrule your objection and the garnishment will begin under the terms outlined in the order.
   • Even if the judge does not sustain your objection, you still have the opportunity to meet with the creditor (or a representative of the creditor) and negotiate payment arrangements to potentially stop the wage garnishment.
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Method 4

Method 4 of 5:

Challenging the Judgment

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   Get a copy of the original judgment. A copy of the judgment may have been included with your garnishment notice, or you may have to go to the clerk of court's office to request a copy.

   • The judgment is the court order issued when the judge determined you owed the creditor money. After the judgment was issued, the creditor went back to court and enforced that judgment by having your wages garnished.
   • If the judgment was obtained improperly, you may be able to get rid of it by filing a motion to vacate.
   • Keep in mind that you cannot dispute the debt at any garnishment hearing. Filing a motion to vacate is the only way to challenge the underlying judgment that gave rise to the garnishment.
   • If the creditor got a default judgment against you, go to the clerk's office of the court where the judgment was entered and ask for the entire case file. This way you can review the way the case was filed and find errors or reasons the judgment should be vacated.
2. 
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   Check your state's law. Each state provides specific reasons why a judgment entered by its courts may be vacated.

   • For example, you may have a basis to dispute the judgment if the creditor was awarded a default judgment but you were never served with the creditor's complaint and didn't have a chance to respond to the lawsuit.
   • You also should check to see how long you have to file a motion to vacate after the judgment was entered. Typically you must file this motion within 30 days of the date of entry of the judgment, but in some jurisdictions you may have less time.
3. 
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   Consider consulting an attorney. If you believe the original judgment should be vacated, you may want an experienced attorney to advise you or guide you through the process.

   • Once you have a copy of your complete court file, you might want to talk to a consumer law attorney. Often these attorneys will at least give you a free initial consultation where they review your case and explain your options.
   • If you're worried about attorney's fees, keep in mind that attorneys who take these types of cases are accustomed to having clients with few financial resources, so they typically are willing to work with you.
4. 
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   Draft your motion to vacate. You may be able to find a form for your motion to vacate, or you can create it yourself.

   • Search on the website for the court where the original judgment was filed for forms, or contact the clerk's office and ask if a form is available that is approved for use in that court.
   • You can ask the clerk for motions to vacate filed in other cases in the same court and use those as templates, but make sure you adapt the language to fit your own case.
   • If the court doesn't have a form available specifically for a motion to vacate, you may be able to use a blank motion form. You still should find examples of motions to vacate filed in the same court in similar cases so you have an idea of what your motion needs to say.
   • Generally, you must identify yourself and the judgment entered against you, then state that you want the judge to vacate the judgment for the following reasons. Then list your reasons, such as never having received notice of the lawsuit.
5. 
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   File your motion. You should file your motion with the clerk of the same court that entered the original judgment.

   • Before you file your motion, make enough copies of it so that you can keep one for your records and have one delivered to the creditor. The clerk will keep the original.
   • You will have to pay a filing fee, typically less than $100, to file your motion. If you can't afford the filing fee, ask the clerk about filling out an application to have the fee waived. You must disclose details about your income, assets, and expenses, and if your financial resources fall below a certain threshold the court will waive filing fees for you.
   • The clerk will let you know what you have to do to get the motion delivered to the creditor. In some jurisdictions the clerk will send it for you, but typically you must take care of this yourself. The easiest way is to send the motion using certified mail with returned receipt requested, so you have proof that the creditor received it.
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   Attend your hearing. The clerk will schedule a hearing for the judge to review your motion and decide whether the original judgment should be vacated.

   • There likely will be a number of other motions also being heard on the same day as yours. Take a seat in the gallery of the courtroom and wait until your name is called. When you are called, you must tell the judge about your case and why you believe the original judgment should be thrown out and you should be given a chance to defend yourself.
   • Keep in mind that even if the judge vacates the judgment, that doesn't mean the debt – or even the lawsuit itself – has gone away.
   • However, if the judgment is vacated you now have the opportunity to defend yourself and file an answer to the lawsuit disputing the validity of the debt.
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Method 5

Method 5 of 5:

Getting Credit Counseling

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   Choose a consumer credit counseling service (CCS). Each state has a list of licensed non-profit credit counseling services that can help you create a plan to repay your debts and change wage garnishment.

   • The U.S. Trustee Program has a list of reputable agencies approved to provide pre-bankruptcy counseling in each state, available at http://www.justice.gov/ust/list-credit-counseling-agencies-approved-pursuant-11-usc-111. These agencies typically offer debt management assistance as well, even if you're not looking to file bankruptcy.
   • Contact several agencies and get information about the services they offer. You may also be able to have an informational interview with a counselor who works there. Take a look at several agencies if possible before you decide on one.
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   Provide information about your finances. Your credit counselor will need information about your income, expenses, debts, and assets so he or she can evaluate your situation.

   • You should gather information about all your debts, not just the one for which you're faced with wage garnishment. You also might need to bring bank account statements going back several months.
   • It's important that you be honest about your actual expenses. Your credit counselor will help you build a budget and then figure out how much money you can devote to paying off your debts.
3. 
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   Set up a payment agreement. Based on your financial information, your credit counselor will help you create a schedule you can afford and work with your creditors to adjust your debts.

   • This payment agreement typically resolves not just the debt for which you're having your wages garnished, but any other outstanding debts you have.
   • Your credit counselor will talk to all of your creditors and get them to agree to the terms of the agreement. Your creditors may even agree to lower the amount of money you have to pay or reduce your interest rate.
4. 
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   Make payments as agreed. Once your CCS agreement is in place, creditors cannot garnish your wages as long as you are making the scheduled payments.

   • You'll be making a single payment as scheduled to your CCS, which will in turn distribute payment to your creditors.
   • Keep in mind that if you miss a payment, you may forfeit the agreement and the creditor may file to have your wages garnished again. If you're concerned you might miss a payment, contact your credit counselor as soon as possible before it happens, so you can work something out.
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