An option for creditors or individuals who are seeking to collect debts in Florida is a wage garnishment. A wage garnishment is a court order that allows a third party to deduct money from a debtor’s pay.
The third party that is collecting a debt is typically an employer. Banks, however, may also collect money on a debtor’s behalf.
The money is deducted from an individual’s paychecks until their debt is satisfied. In the State of Florida, there are specific fuels that creditors are required to follow in order to garnish wages.
If an individual has any questions about wage garnishments in Florida should consult with a local Florida lawyer.
When Are Wage Garnishments Used?
A wage garnishment is used when a creditor obtains a court order to garnish the wages of a debtor for the purpose of repaying their debt. Common examples of debts that are paid back using a wage garnishment include auto loans, credit cards, and home loans.
The individual might have a large amount of debt. In that case, the court will apply wage garnishment laws in order to force an employee to repay some of their debt so that they do not increase their debt and force themselves into bankruptcy. With wage garnishments, a court orders the employer of a defendant to take part of their paycheck and send it to the court or an intermediary agency that processes debt payments.
Once a garnishment is ordered, the court will provide notice to the individual’s employer to start garnishing the employee’s wages. Usually, it is up to an employer to calculate the amount that will be taken out, which is typically taken out weekly.
In order for a creditor to be allowed to garnish wages, they must have a court order. This applies in all circumstances, except:
In other words, every other type of debt, for example, credit card debt, requires a court order to garnish an individual’s wages. It is important to be aware that deductions for child support will only be taken out once it is established that the individual owes child support and they are late making their payments.
If an individual thinks they may owe child support but there has not been a court order issued, it means they do not yet owe child support. Child support should not be garnished from the employee’s wages until a court order has been issued.
If an individual owes unpaid child support, a court may order a wage garnishment in order to collect the debt. For example, if an individual is ordered to pay child support but they are not employed, they may still owe the payments that they missed while being unemployed.
If the individual gets a job at a later time, the court can order garnishment for those months that they missed payments.
What Is Florida’s Statute of Limitations on Wage Garnishments?
A creditor is required to sue a debtor to garnish their wages within a certain period of time, referred to as the statute of limitations. The statute of limitations for various types of debt include:
- Four years for open accounts, such as credit cards;
- Five years for written contracts;
- A creditor only has 20 years from the date of the judgment to garnish wages.
How Much Money Can a Creditor Take from My Check?
Florida laws follow the federal laws that set the maximum threshold amount that creditors are permitted to deduct from employee’s paychecks. It is currently 25% of the individual’s disposable income.
Disposable income is income that is legally left from a paycheck after all of the deductions are made, including federal, state, and local taxes. If a debtor is paid weekly, the amount that is deducted may not exceed 30 times the amount of minimum wage.
Do Other Deductions Count?
No, the State of Florida does not consider important costs, such as:
- Rent;
- Utilities;
- Child support;
- Medical care.
What Is Exempt from Wage Garnishment?
Although a creditor is permitted to garnish wages from most forms of income, depending on the type of debt, a debtor is not permitted to garnish from the following:
A creditor is allowed to garnish wages from the following protected sources of income if the garnishment is for overdue income taxes or child support:
Specifically, the State of Florida forbids prohibits creditors from garnishing wages, such as:
- Social security;
- Pensions;
- Public benefits;
- Annuities;
- Insurance.
What if I am the Head of Household, Can My Pay Be Garnished?
The State of Florida does not allow the income of the head of the household to be garnished.
How Do I Stop Wage Garnishment?
If a wage garnishment has been ordered for an individual, it may be difficult to avoid it, but the individual can object to it. Depending on the type of debt that the creditor is trying to collect, an individual may have different options.
Before going to court, an individual may attempt to negotiate with their creditor to set up a payment plan. If the individual and the creditor are able to agree to a payment plan, the creditor may stop wage garnishment.
An individual could be having financial hardships. If so, they can file an objection to the wage garnishment and claim an exemption. The individual will have to be able to show that they cannot cover their basic costs of living if their income is lowered.
If the individual is successful, their garnishment will be limited, and the amount that is taken out of their check will be reduced. Exemptions are usually already in place for income that comes from Social Security, alimony, and retirement.
An individual or an employer may need assistance with a wage garnishment issue. In this case, they should consult with a wage garnishment lawyer.
What About Filing for Bankruptcy as a Last Resort?
Bankruptcy may be an option for an individual who has substantial debt. Once an individual files for bankruptcy, the court will issue a stay that stops most wage garnishments.
In the majority of cases, child support is an exception to this rule. If the individual’s bankruptcy is processed, they may be released from their debt.
Some types of bankruptcy require a debtor to repay their old debts. It is important to consult with an attorney before filing for any type of bankruptcy.
Can an Employer Fire Me due to a Wage Garnishment?
It may be possible for an employer to terminate an employee due to a wage garnishment, but only if they accumulate more debt, which results in a second wage garnishment. Title II of the Consumer Credit Protection Act prevents employees from being terminated for a wage garnishment, but only if they do not keep accumulating additional debt.
Do I Need the Assistance of a Lawyer?
You might be an individual who has wage garnishment. If this is the case, it is important to consult with a Florida collection attorney. Your attorney can advise you of your rights and help you stop the wage garnishment, if possible.
If you are an employer, your lawyer can help ensure that you are properly garnishing an employee’s wages in accordance with the requirements of Florida law. If there is a dispute regarding your wage garnishment, your lawyer will help you resolve the issue.
