Friday, January 16, 2015

Garnishment In Depth



Revised Code of Washington 6.27 Garnishment

A Writ of Garnishment may only be issued after you are sued and  a Judgment is entered against you, except for student loans.  Student loan creditors do not need to sue you prior to garnishing your wages.


YOU COULD BE FIRED

Garnishment lasts for 60 days, and can be renewed until the Judgment is paid in full.  Repeated garnishments are not just embarrassing, they can be grounds for termination from employment.


EVERY 60 DAYS YOU HAVE AN OPPORTUNITY TO SETTLE


Since the Writ of Garnishment expires in 60 days, a settlement opportunity arises.  It is important to analyze your eligibility for Chapter 7 bankruptcy prior to making any settlement offer.  See Bankruptcy Pitfalls Re Tax Liability for Debt Settlement.


FUNDS GARNISHED WITHIN 90 DAYS OF FILING CAN BE EXEMPT


Funds garnished within 90 days of filing bankruptcy may be claimed as exempt and should be returned to you, so it is important not to let garnishments run and to file bankruptcy to stop them.




YOUR EMPLOYER COULD HAVE TO PAY YOUR DEBT

Employers who are served with a Writ of Garnishment stand in the shoes of the Debtor regarding the debt, and are required to answer interrogatories without compensation and deduct 25% of net pay by order of the Court.  If the employer fails to deduct funds from the Debtor's paycheck, then the employer is liable for the debt.  


LACK OF PROPER SERVICE IS NOT A DEFENSE

It is common for Debtors not to be personally served with a Summons and Complaint and to only receive notice of the debt when they are contacted by Human Resources regarding the garnishment.  That is one reason monitoring your credit report and following up with creditors you think you might owe is important.

The creditor's remedy if you spend the money and win a Motion to Set Aside a Judgment based on lack of service is that the creditor simply reserves you and then wins the lawsuit with a higher Judgment amount.


CONTACT ME IMMEDIATELY IF YOU ARE GARNISHED

Please email MULVANEY LAW OFFICES, PLLC immediately at chris@mulvaneylawoffices.com with a copy if you are served with a Summons and Complaint or receive notice of a Writ of Garnishment.


 14205 SE 36th St Ste 100
Bellevue, WA 98006-1553
www.mulvaneylawoffices.com
Phone: 425-649-1190
Fax: 425-223-3197

chris@mulvaneylawoffices.com