After a long two weeks of work, you may be excited for payday. Whether you need the funds to make rent or you’ve been saving up to splurge a little, you may be incredibly disappointed and concerned to see your paycheck is significantly less than you imagined. However, before you accuse your boss of wage theft, it’s important to consider whether or not you have any outstanding debts. In some instances, when there is an outstanding debt, your creditor may turn to wage garnishment. The following blog explores what you should know about these matters and how an experienced California fraud debt collection defense lawyer can assist you through these complicated times.
What Is Wage Garnishment?
When you are in debt, the creditor will take several steps to recover the funds they deserve. However, if these attempts go unanswered, they may take more drastic measures by petitioning the court for an order to garnish your wages. Essentially, this means that the court will allow the creditor to take a portion of your income to repay the debt owed. Once the order is granted, the creditor will contact your employer, who legally must comply with the order.
It’s important to understand that creditors are limited in how much of your income they can take. In California, a creditor cannot garnish more than 25% of your income after mandatory deductions have been taken out.
Generally, a creditor must receive a court order allowing them to garnish your wages. However, there are instances in which you’ll find some creditors do not need a court order to garnish wages. This includes state and federal agencies collecting things like alimony or tax debt.
Will This Hurt My Credit Score?
It’s important to understand while an actual wage garnishment order will not appear on your credit report, the circumstances that lead to the garnishment can and will impact your credit. If you’re behind on payments or have delinquent accounts, this will appear on your credit report, dragging your credit score down with it.
In some instances, a wage garnishment may not be warranted or legal. If a creditor does not receive a court order when they are required to or does not take appropriate measures before resorting to this option, you may have grounds to file a claim. Additionally, if you are in debt due to fraud and your wages are being garnished over an outstanding balance you had nothing to do with, it can be even more overwhelming. As such, it’s imperative to understand that you have legal options.
At Loker Law, our team will examine your circumstances to determine the best course of action for your specific circumstances. We understand how complicated these matters can be, which is why we are committed to helping you fight for the best possible outcome for your circumstances. When you need help, our firm is here. Contact us today to learn more.
