When payday comes and you excitedly check your bank account, you may be disappointed and confused to discover that the deposit is significantly less than expected. However, before you accuse your boss of wage theft, it’s important to consider whether or not you have any outstanding debts or judgments against you that can warrant wage garnishments. It’s imperative to understand the legal process creditors must take to garnish your wages and the impact it can have on your credit score. If this reflects your circumstances, you’ll want to keep reading to learn how a Los Angeles, California debt defense lawyer can help represent you when dealing with creditors.
What Is Wage Garnishment?
When you owe a debt and a creditor has taken measures to collect on the funds owed to no avail, they may be able to garnish your wages. Essentially, this means they have petitioned the court and received an order that will be given to your employer. As such, your employer must withhold a portion of your wages to send to the creditors. Your employer is legally obligated to follow the court order they receive.
In California, a creditor cannot garnish more than 25% of your disposable income, which is the pay you receive following all mandatory deductions.
It’s also important to understand that not all creditors must go through the courts. For example, if you owe student loans or child support, a court order is not necessary to garnish your wages, because they are federal and state agencies.
What Impact Will This Have on My Credit?
When there is a court order against you to garnish your wages, it’s important to understand that it will not appear on your credit report. However, if your wages are being garnished, there is likely information on your report that will impact your credit. For example, there will likely be missed payments, delinquent accounts, and judgments against you. This information can impact your ability to get loans and secure housing.
Unfortunately, it’s not improbable for a creditor to garnish your wages without going through the necessary channels. If this occurs and your wages are illegally garnished, it’s important to understand your rights. Typically, you’ll be able to file a motion to vacate the garnishment if you can show that it violates the law or was unauthorized.
If you’re going through a wage garnishment, it’s important to understand that you can connect with an experienced attorney. At Los Angeles Legal Solutions, our firm will do everything possible to help guide you through these complicated matters. We will fight if your wages are being unlawfully garnished to help you receive justice. When you need help, our team is here. Connect with us today to learn how we can assist you during these challenging matters.
