Garnishment: What Is Protected From Wage Garnishment For People Not Head of Household
I have had a few discussions during this past week about creditor's ability to garnish wages of judgment debtors who are not head of household and who do not qualify for Florida's wage garnishment exemptions. If you are not head of household the Florida statutes permit creditors to garnish your wages. Garnishment is limited to amounts otherwise provided by federal wage garnishment laws. Federal law permits garnishment of 25% of the debtor's net earnings.
One person asked me if voluntary contributions to company sponsored pension plans was deductible from gross wages for purposes of determining net wages subject to garnishment. I found a few court decisions which said that the wage garnishment statutes contemplate involuntary deductions from salary such as income taxes, union dues, or court order child support and alimony. Voluntary retirement payments would not be deductible for purposes of computing wages subjection to garnishment. Otherwise, debtors could maximize pension contributions as a means of avoiding wage garnishment and still keep the money for their future use.
posted by Jonathan Alper, asset protection and bankruptcy attorney, Orlando, Florida
I am curious if someone who signed a promissory note does not pay it. Does that mean I cannot legally take them to court and garish their wages. I do not know if this person is considered the head of household.
Great blog. I had an argument today about this very issue; obviously, it's a little rare for them to go from judgment, to writ, to collecting against your typical broke ass credit card debtor, but it's possible.
Good luck. PS I'm in your neighborhood if you ever want to get a beer.
Question? I am Head of Houshold, are dept collectors allowed to garnish federal income taxes (stimulus checks) ect...?
I am being sued in small claims court for a credit card debt. I am the only person in my home working. I am trying to keep the house paid, ultilies and food on the table. I tried to reason with them I can only afford $50 a month right now until my husband finds work but they insist I pay $300.00 a month or they will garnish my wages. I feel that I am being pressured give up my home in order to comply to their demands. The garnishment would make it impossible to pay the mortgage much less the ultities. Is there something I can do?
An interior designer by the name of Clayton Hargrave talked me into loaning him several hundred thousand dollars. He always has an excuse of why he cannot pay it back and always has some story about how he will get some money to make payments in a week or month, but he never comes through. He moved to Florida. Can I garnish his wages if he is single, not married and has no children. What if he marries, can I still garnish his wages?
I am a married woman in fl with 4 kids only person working can i claim head of household exemption
In response to Shaw there maybe justice on July 29 2010
For Immediate Release
May 4, 2010
United States Attorney's Office
Eastern District of Missouri
Contact: (314) 539-7719
Local Developer Pleads Guilty to Fraud Charges
ST. LOUIS, MO—The United States Attorney's Office announced today that Clayton Hargrave has pleaded guilty to fraud charges involving his Washington Avenue development.
According to the court documents, Hargrave was a designer and developer associated with a property located at 1511 Washington Avenue, St. Louis. His plan was to rehabilitate the seven-story building into a combination of commercial property (two stories) and residential condominiums (five stories).
In January 2006, Hargrave obtained a $10 million loan from Great Southern Bank to renovate and pay off original loans used to purchase the land and the building. Hargrave agreed with Great Southern Bank to disburse money through Commonwealth Land Title Insurance Company, as sub-contractors would submit bills to Hargrave for services to be provided for renovation. Approximately $4.7 million of the loan money went to pay original loans and reimburse Hargrave for initial construction expenses. Hargrave told the bank that the project was to be completed by the end of 2006.
From the beginning, Hargrave companies experienced difficulties in moving the project forward. In December 2006, a forebearance agreement was signed by Great Southern Bank and Hargrave. This is an agreement made between a mortgage lender and delinquent borrower in which the lender agrees not to exercise its legal right to foreclose on a mortgage, and the borrower agrees to a mortgage plan that will, over a certain time period, bring the borrower current on his or her payments. At this time, the project was over budget. Hargrave obtained additional financing from a private investor and Great Southern Bank. Legacy Building Group, the general contractor, was terminated and replaced by Ashley Architecture, a company owned and operated by Hargrave.
In May 2007, the project was again over budget and Great Southern Bank refused to finance further loan proceeds. In July 2007, the project was placed in receivership by Great Southern, who found another general contractor who completed the project.
During this time, Hargrave engaged the services of SEJ Partnerships. An invoice for $66,000 was submitted on behalf of SEJ Partnerships to Commonwealth to purchase and install flooring at 1511 Washington. The money was drawn from Great Southern Bank and sent to Commonwealth Title, who received it and sent it to SEJ in Milwaukee, Wisconsin, on December 27, 2006. The next day, at the direction of Hargrave, SEJ Partnership wired the $66,000 to his sister in Minnesota. The money was then used to pay other creditors and not for the purposes intended, which was the renovation of 1511 Washington.
CLAYTON HARGRAVE, St. Louis, pleaded guilty to one felony count of wire fraud before United States District Judge Charles A. Shaw. Sentencing has been set for July 29, 2010.
Wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000.
This case was investigated by the Federal Bureau of Investigation. First Assistant United States Attorney Michael W. Reap and Assistant United States Attorney Rob Livergood are handling the case for the U.S. Attorney's Office.