What You Need to Know About Small Claims Court Garnishing Wages
Wage garnishment is a legal tool to collect a debt. Here’s what you need to know about small claims court garnishing wages.
Federal and state laws regulate the wage garnishment process. If a court approves wage garnishment from a debtor, the debtor’s employer will send a creditor the owed money directly.
What is Wage Garnishment?
Wage garnishment is the legal process in which a court orders a debtor’s employer to withhold a set amount of their wages. An employer will send that portion of the wages to the recipient outlined in the court order. A judge will order wage garnishment in child support cases or if a debtor owes another individual or company.
A court will order wage garnishment if:
- The debtor is not self-employed and receives a regular wage,
- The debtor’s pay is above the poverty line,
- The debtor does not have other active wage garnishments, and
- The debtor is actively employed and has not filed for bankruptcy.
In cases of child support or alimony (spousal support), a court can still order a debtor’s employer to garnish their wages even if they have other active wage garnishments. A court will not order wage garnishment if the debtor contests the garnishment. This process is more complex and may require the help of an attorney.
Related: How to Sue Someone in Small Claims Court
Wage Garnishment Process
The first step is to file a petition with a small claims court by completing a wage garnishment request application. Some jurisdictions may require a creditor (the person receiving the payment) to send a copy to the debtor. If a debtor contests the wage garnishment request, a judge will hold a hearing.
If the judge approves the request, the creditor must fill out a Writ of Garnishment form, which varies by jurisdiction, and pay the associated filing fee. The creditor must send this form to the debtor and their employer through certified mail. A creditor may also have to send this form to an officer to enforce the writ.
Wage Garnishment Rights
Title III entitles individuals whose employers garnish their wages to certain rights. An employer cannot garnish wages that are more than 25 percent of disposable earnings (the total income after taxes) or the amount by which the wages exceed 30 times the minimum federal wage ($7.25 per hour). Wage garnishment must meet federal and state laws.
Title III also does not allow employers to fire debtors because of wage garnishment. However, federal law does not protect debtors who have multiple wage garnishments depending on the jurisdiction. If state law permits, employers can fire debtors with two or more wage garnishment orders.
Related: How to Sue a Stalker in California: Grounds for a Claim
What is a Small Claims Court?
A small claims court is a type of court that hears civil cases between private parties (citizens) that involve $10,000 or less. The amount of money varies from jurisdiction. Small claims court is more informal since parties typically represent themselves and may not need an attorney.
Despite the informality of small claims court, these judgments are still legally-binding and enforceable. This means not following a small claim judgment can result in serious consequences depending on the statutes of the court’s jurisdiction.
Can Small Claims Court Garnish Wages?
Yes, small claims courts can garnish wages as long as the total amount owed does not exceed the maximum limit of the jurisdiction. A small claims judgment will outline the conditions in which the debtor must repay the debt. If the debtor does not repay the debt within the specified period, the creditor can petition a court to enforce the debt collection method.
Wage garnishment is a legal mechanism for collecting debts. Some states do not allow wage garnishment, and in that case, a creditor will have to pursue an alternate form of debt collection that their jurisdiction permits.
However, a small claims court cannot garnish wages if a debtor files for bankruptcy. Debtors cannot file for bankruptcy in a small claims court. If a court declares a debtor bankrupt, the creditor may lose the claim from a small claims court.
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