What You Need to Know About Wage Garnishment in Georgia
If you cannot pay your bills and are currently facing threats from creditors in the form of violence or legal action, you may be looking at what garnishment means. Here’s everything you need to know about how to stop wage garnishment in Georgia.
Wage garnishment in Georgia is a court order requiring you to send a portion of your paycheck to your creditors, which could result in losing your privacy, autonomy, and ability to prioritize other bills. Federal law protects you from being fired for one wage garnishment, but employers may find ways around that rule.
Georgia Wage Garnishment Laws
The rules for wage garnishment in Georgia vary according to the type of debt. In cases of consumer credit, such as credit cards and medical bills, federal law limits the amount a judgment creditor can receive to the lesser of:
- 25% of your net earnings
- Your disposable earnings minus 30 times the federal minimum wage
Some sources of debt do not require an official order for garnishment and may take a larger portion of your paycheck. These include:
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Child support
A court may garnish a maximum of 60% of your paycheck unless you support another child or former spouse, in which case garnishment can be limited to 50%. If you are more than 12 weeks behind in your payments, your payment amount can increase by 5%.
Related:
Student loans
Student loan collection agencies may garnish up to 15% of your net income if you default on your loans.
Taxes
State and federal agencies can garnish your wages without a court order based on the number of tax deductions you claim and the number of dependents you have.
Multiple creditors cannot garnish your wages if the total exceeds the legal limit for each creditor. Georgia law allows wage garnishments to be lump-sum deductions or continuous deductions. Continuous garnishment orders can last 180 days, and a court may renew the order if the debt remains unpaid.
Wage Garnishment and Bankruptcy in Georgia
Upon filing for bankruptcy, the court issues an automatic stay, preventing creditors from collecting debts against you. If you file for Chapter 7 bankruptcy, you might be able to discharge all of your debts to get a fresh start. Even if you file for Chapter 13 bankruptcy, you may not have to pay back the full amount you would have lost through garnishment. Once you complete a repayment plan based on your disposable income, you can earn a discharge of your remaining eligible debt.
Filing a Traverse Against Wage Garnishment in Georgia
An individual may prevent wage garnishment by showing the underlying judgment is void or invalid. A court cannot garnish social security income. In addition, a court cannot garnish wages from a joint account containing money not belonging to the debtor.
Also, if you have a lease showing you lived elsewhere when your creditor sent a garnishment notice, you may be able to win a traverse since you never received the lawsuit.
Rather than avoiding garnishment, you may want to settle your debt. If you offer a one-time lump sum at the garnishment stage, you will be more successful at settling debt. You may be able to settle a debt for as little as 1/3 of the total judgment.
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You should settle debt sooner rather than later to save time and money. If a creditor accepts your settlement offer, it will dismiss the garnishment, stop collecting on the account, and cancel any liens against you. Creditors may issue a 1099 form for income if you settle a debt for a sum less than the total debt balance.
Contact Us
If you or a loved one would like to learn more about Stop Wage Garnishment Georgia, get your free consultation with one of our Employment Attorneys in Georgia today!