We are in the process of being sued for almost $10,000. Last weekend, when I checked my bank statement online, I saw that it had been wiped out with garnishment (and savings too). Talked to various people today and went to the bank and found out that they have "legal orders" to garnish ANYTHING that gets deposited into our account for 45 days... (up to what we owe). So there goes our paychecks this week. Can they do this??? We had zippo notice...good thing we didnt' ahve a basket of groceries and trying to use debit card to check out. Insight?? Knowledge?? Thanks
You should contact your local courts and try to get court records. You could petition the court for a removal of garnishment if they didn't prove due process of trying to contact you. In the meanwhile, stop direct deposit and find a new bank (or keep money in travelers checks or cash!). If you have a wage garnishment, they will have already contacted your employer to withhold part of your paycheck so direct deposit versus check would make no difference. I'm actually in the middle of the same thing.. accept it's not a garnishment. It's a writ of attachment (wages are exempt). People tend to reccomend getting a lawyer for this. Did your bank tell you which collection agency did this? You might find out the general sitution from them, but getting a lawyer to find out is the general census of what people have suggested I do.
Impossible TITLE 15 > CHAPTER 41 > SUBCHAPTER II > § 1673 limits the amount of garnishment to 25% of disposable income. Disposable income is wages less taxes, FICA. In addition, no state may enact law that is greater than 25%. The only exceptions are tax liens, support orders, bankruptcy.
Impossible Some Court Clerk's have forms that you can fill out for review by the Court to exempt more than the 75% from garnishment. Depending upon your circumstances with a hardship filed 100% of your wages could be found exempt from garnishment. I'd check with the Clerk of the Court for the forms or on your states website, if they have one, for download able forms. How did they get a garnishment without a judgment?? and if they got a judgment, how so without your knowledge??
Impossible This has recently happened to me. From what we can piece together from bank records is that the attorney did file and get a judgement in the county where they are (same state)...sent that info to the bank, who then followed the order. Guess they didn't want us to clean out our account before they did! Fortunately, we were able to get some money from another source to cover the entire amount to make the garnishment stop. So it was our bank account garnished, not our wages... but they were set to take out anything that got deposited...and blocked our safe deposit box.
Can this be done legally? I mean yes, I read above that 25% is the limit to garnish...but they've wiped us out Twice, left us breaking the law because of obligations on mortgages, etc... what to do?
There may be confusion between limits on wage garnishment and limits on what they can take out of checking and savings and similar accounts.
It's my understanding that garnishment is levied against the debtor at his place of employment. This sounds as if it is an execution order deriving from an outstanding judgment. OP needs a lot more information. I'd start with the bank and a copy of the order they are responding to.
I'd also check with the courts and get a copy of any judgment. And yes, there is a big difference between garnishing wages and levying a bank account. And what they can take depends on your state laws. In some states, the sherriff can even come to your home and seize your property to be sold at auction. Many people ignore the letters and notices they get thinking that because they don't have much the creditor can't do anything. This is why you always need to open the mail, receive the summons, and show up in court. Once they have the judgment there is quite a bit they can do to satisfy that judgment.
