Few things feel as sudden as opening your paycheck and finding a chunk of it gone. A wage garnishment means a creditor has gone to court and gotten an order that requires your employer to send part of every paycheck straight to them. It is stressful, and it can feel like there is nothing you can do. In most cases, there is.
Here is how garnishment works in Ohio, how much can be taken, and the ways to stop it.
How a garnishment starts
For most consumer debts, like credit cards, medical bills and personal loans, a creditor cannot touch your wages just because you are behind. First it has to sue you and win a judgment in court. Many judgments are entered by default, simply because the person who was sued did not respond to the lawsuit.
Once a creditor has a judgment, Ohio law requires it to send you a written demand for payment before it asks the court to garnish your wages. If you still do not pay, the court issues an order to your employer. From then on, your employer has to hold back part of each paycheck and send it to the court until the debt is paid.
Some debts work differently. Child support, federal student loans and certain taxes can lead to garnishment without the creditor filing an ordinary lawsuit first.
How much can be taken
For ordinary consumer debts, the limit is based on your disposable earnings: what is left of your pay after taxes and other deductions the law requires. A creditor can take the smaller of these two amounts:
- 25 percent of your disposable earnings for that pay period, or
- The amount by which your weekly disposable earnings are more than 30 times the federal minimum hourly wage.
That second rule protects people with lower incomes. If you earn close to minimum wage, little or nothing can be taken for a credit card or medical debt.
The limits are higher for some debts. Child support and alimony orders can take a much larger share of your pay. Defaulted federal student loans can be collected by garnishing up to 15 percent of disposable pay without a court case.
Some income is generally protected from garnishment for ordinary debts altogether, including Social Security, unemployment compensation, workers’ compensation and most public assistance. If protected money is being taken, you may be able to stop it by asking the court for a hearing. The window to ask is short, so act quickly when you receive the court’s notice.
Why it keeps going
A garnishment does not stop after a few paychecks. It continues until the judgment is paid in full, and the balance usually includes court costs and interest. On a large debt, that can mean months or years of smaller paychecks, which often makes it harder to keep up with rent, car payments and everything else.
More than one creditor can also line up. When one garnishment ends, the next creditor with a judgment may be waiting.
Ways to stop a garnishment
Pay or settle the debt. If the balance is small, or the creditor will accept a reduced lump sum, paying it off ends the garnishment. Get any agreement in writing before you send money.
Challenge it. If the garnishment takes protected income, takes more than the law allows, or is based on a judgment with problems, you can raise that with the court. This is where the short deadline on the court’s notice matters.
File bankruptcy. The moment a bankruptcy case is filed, a court order called the automatic stay takes effect. It stops most garnishments right away, and your employer is told to stop withholding. For many people this is the fastest way to get their full paycheck back.
In a Chapter 7 case, the debt behind the garnishment, such as a credit card or medical bill, is usually wiped out entirely. In a Chapter 13 case, you repay what you can afford through a court-approved plan, and the creditor cannot garnish you while the plan is in place. In some cases, wages taken in the 90 days before you file can even be recovered.
Bankruptcy does not erase every debt. Child support and most student loans usually remain. But a Chapter 13 plan can still give you an organized way to deal with support arrears while protecting the rest of your income.
What to do now
If you have been sued, do not ignore the papers. Responding to the lawsuit can sometimes prevent a judgment, or at least buy time. If a garnishment has already started, gather the court notice, your recent pay stubs and any letters from the creditor. Those show who is collecting, how much and how fast.
Then get advice quickly. Every paycheck that goes by is money you may not get back, and some of the options above depend on deadlines.
Lake Legal Services helps people across Stark County and Northeast Ohio stop garnishments and get back on their feet. Call 330-605-3508 or book a free consultation to find out which option fits your situation.
This article is for general informational purposes only and is not legal advice. Reading it does not create an attorney-client relationship. Every situation is different; consult an attorney about your specific circumstances.