Navigating Wage Garnishment: What to Do When Served

If you’ve been served with a wage garnishment, it’s important to understand the steps you should take both as an employee and as an employer. Whether you’re facing garnishment or are the employer making the deduction, there are specific guidelines to follow to ensure you handle the situation appropriately and minimize financial strain.

For the Employee: What You Should Do

As the individual facing the wage garnishment, it’s crucial to act promptly to understand the situation and its implications. If you are receiving the garnishment served directly, the amount indicated on the paperwork must be withheld from your paycheck. This should be done no later than the second payroll cycle following receipt of the notice.

However, if you do not want to have the amount withheld from your paycheck, you have the option to settle the debt with your creditor. By making the payment, you can often receive a release of garnishment, which will then be forwarded to your employer. Depending on your state laws, your employer may also be permitted to charge you a processing fee.

Examples:

In Oregon, for instance, the employer is allowed to charge you a processing fee of $2 per week for the duration of the garnishment.

Given that part of the garnishment amount will be used to cover lawyer or court fees and interest, settling the debt prior to garnishment is often more beneficial.

For the Employer: Your Responsibilities

If you are the employer, you must follow the instructions included with the garnishment notice. Withhold the amount specified and remit it to the agency and address indicated within the required timeframe.

It’s critical that you understand the legal requirements and procedures involved in wage garnishment. Failure to comply could result in legal penalties for the employer.

What to Do If You Receive a Garnishment Notice

First and foremost, you should contact the agency that is garnishing your wages. Prior to reaching out, it’s advisable to complete their version of a financial information request. This will help you understand your ability to pay and whether you are in compliance with any previous agreements. Being out of compliance can limit your options.

Steps to Take:

Contact the garnishing agency immediately. Prepare a financial information request as directed. Seek legal advice to understand your specific situation and rights. Prioritize settling the debt with your creditor before it reaches the point of garnishment.

What If a Judgment Was Appealed?

If you recently disputed a judgment against you and were subsequently served with a wage garnishment, your immediate step should be to contact a lawyer. Only a qualified legal professional can provide you with advice tailored to your circumstances.

While you can seek advice from other sources, relying on internet advice may not be sufficient or accurate. Seeking legal representation will ensure you receive guidance that is both timely and appropriate.

Important: Only a lawyer can provide you with qualified advice specific to your situation.

Conclusion

Navigating wage garnishments can be stressful, but with the right approach, you can effectively manage the financial strain. Whether you’re an employee or an employer, understanding your responsibilities is key. Prioritize compliance and seek professional advice to protect your financial well-being.