California Wage Garnishment Defense Lawyer
Wage garnishments can be a significant concern if you owe money and can't pay it back. In simple terms, wage garnishment happens when a court orders your employer to withhold a portion of your paycheck to pay off a debt you owe (an “Earnings Withholding Order” or EWO).
If you live in California, it's crucial to understand the specific laws and protections that apply to wage garnishments in this state, as it can affect how much of your wages can be taken and what steps you can take to protect yourself.
Below, consumer protection lawyers at Fitzgerald & Campbell, APLC explain wage garnishments, focusing on what they are, how they work, and what laws apply to you in California. By understanding these details, you can better navigate the situation if a creditor garnishes your wages.
What Is Wage Garnishment?
Wage garnishment is a legal process where a court orders your employer to withhold a certain amount of money from your paycheck to pay off a debt. This money is sent directly to the creditor, who must have a judgment against you, such as a credit card company, medical provider, or a private lender.
The process begins when a creditor sues you for not paying a debt and wins the case. The court then issues an Earnings Withholding Order to your employer. Once your employer receives this order, they must start deducting the specified amount from your wages. This continues until the debt is fully paid off or other arrangements are made.
Different types of debts can lead to wage garnishment. Common ones include unpaid taxes, child support, student loans, and credit card debts. Each type of debt might have different rules about how much of your wages can be garnished. For instance, child support garnishments can take a larger portion of your wages compared to other debts.
California Wage Garnishment Laws
California has specific laws that control how wage garnishment works in the state, which can differ from federal rules. One key aspect of California law is the limit on how much of your wages can be garnished. Under California law, the amount taken cannot exceed the lesser of two amounts: 20 percent of the employee’s weekly disposable earnings (after mandatory deductions), or the amount by which your weekly earnings exceed 30 times the minimum wage.
Federal law also sets limits on wage garnishments. The federal limit is similar, capping garnishments at 20 percent of disposable earnings or the amount through which disposable earnings exceed 30 times the federal minimum wage, whichever is less.
California also offers protections for people with lower incomes. If you can prove that garnishing your wages would cause you financial hardship, you might be able to reduce the amount garnished or stop it altogether. This requires filing a claim of exemption with the court, explaining your financial situation, and showing why the garnishment should be reduced or stopped.
The Wage Garnishment Process in California
To garnish your wages in California, a creditor must follow specific steps. The process involves several key players, including the court, your employer, and you, the debtor. Here’s what you need to know.
Steps a Creditor Must Take to Garnish Wages
First, a creditor needs to sue you in court and win a judgment against you. This judgment confirms that you owe money to the creditor. Once the creditor has a judgment, they can request a writ of execution from the court. This writ allows the creditor to take legal action to collect the debt.
With the writ of execution, the creditor can then apply for an Earnings Withholding Order (EWO). The creditor must complete the appropriate forms and file them with the court. Once the court approves the EWO, it issues the order to your employer.
Role of the Court and Employer in the Process
The court's role is to review the creditor's request and, if everything is in order, issue the EWO. The court also manages any claims of exemption you might file to protect some of your wages from garnishment.
Your employer has a legal obligation to comply with the EWO. When your employer receives the EWO, they must begin withholding a portion of your wages from your paycheck. Your employer then sends these withheld wages to the levying officer, usually the sheriff or marshal, who in turn forwards the money to the creditor.
Notice Requirements to the Debtor
You must be properly notified throughout the wage garnishment process. Once the creditor applies for an EWO, you will receive a copy of the order. This notification gives you a chance to respond and claim any exemptions.
California law requires the levying officer to serve you with several documents, including:
- Notice of Levy
- Earnings Withholding Order for Taxes
- Claim of Exemption
- Financial Statement
You have fifteen days from receiving the notice to file a claim of exemption with the court. If you believe that the garnishment is causing you financial hardship, you can file this claim to protect a portion of your wages. In your claim, you need to provide details about your income, expenses, and dependents.
Once you file the claim of exemption, the court will schedule a hearing to decide whether to grant your exemption. If the court approves your claim, it will adjust the garnishment amount or stop it altogether. If the court denies your claim, the garnishment will continue as ordered. You should know that your employer will continue to take the funds out of your check until the court rules on your claim of exemption.
Exemptions and Protections for Debtors
In California, the law protects a portion of your wages from garnishment to ensure you can meet your basic living needs. As of 2024, the amount that can be garnished is the lesser of 20% of your disposable earnings each week or the amount by which your earnings each week exceed thirty times the state minimum hourly wage. Disposable earnings are your wages left after deductions like Social Security and taxes. For instance, if you earn $500 per week and the state minimum wage is $15 per hour, your garnishment could be up to $100 per week (20% of $500) or the amount by which your earnings exceed $450 (30 times $15), whichever is less.
How to Claim Exemptions
To claim exemptions, you need to file a Claim of Exemption form with the court. This form is a legal request to protect a larger portion of your wages based on your financial needs. You will need to provide detailed information about your income, expenses, and dependents. This includes listing all your sources of income, your monthly expenses (rent, utilities, food, medical expenses, etc.), and any dependents who rely on you financially.
Once you file the form, the court will schedule a hearing. At the hearing, you must present your case to a judge. Bring supporting documents like pay stubs, bank statements, bills, and any other evidence that demonstrates your financial situation. The judge will review your information and decide whether to grant your exemption request. If approved, the judge can reduce the amount garnished or stop the garnishment altogether.
Protections for Low-Income Debtors
California law offers additional protections if your income is very low, in which case your wages are fully exempt from garnishment. This means that if you earn minimum wage or close to it, creditors cannot garnish your wages at all.
Certain types of income are completely exempt from garnishment under both federal and state laws. These include Social Security benefits, disability payments, and public assistance benefits. These protections are designed to ensure that individuals relying on these sources of income are not left without the means to support themselves.
If you receive Social Security benefits, disability payments, or other public assistance, you should notify the court and your employer. Provide documentation proving the source of your income to prevent garnishment of these funds.
Grounds for Challenging Wage Garnishment
If you believe the wage garnishment is wrong or unfair, you have the right to challenge it. Here are several detailed grounds on which you can challenge a wage garnishment:
Incorrect Amount
One of the most common reasons to challenge a wage garnishment is if the amount being garnished exceeds the legal limits. If the garnishment exceeds these limits, you can challenge it. To do so, review your pay stubs and garnishment order to verify the calculations. Mistakes can happen, and sometimes the garnishing entity might miscalculate the amount. Documenting these errors and presenting them to the court can help you reduce the garnished amount.
Debt Paid
If you have already paid the debt in full or have an existing payment plan with the creditor, you should not be subjected to wage garnishment. Sometimes payments may not be properly recorded, or there could be a clerical error. To challenge the garnishment, gather all relevant payment receipts, bank statements, or other proof of payment. If you have a written agreement for a payment plan, include this as well. Presenting this evidence to the court can prove that the garnishment is unnecessary because the debt is either paid off or being handled through other means. This documentation is crucial in demonstrating that the garnishment is unjustified.
Debt Not Yours
Another ground for challenging a wage garnishment is if the debt in question is not yours. Identity theft, clerical errors, or mistaken identity can result in you being wrongly associated with a debt. If you receive a garnishment notice for a debt you do not owe, it is important to act quickly. Obtain a copy of the judgment and the debt details from the court. Compare these details with your records to ensure that the debt is indeed not yours. You may need to gather evidence such as police reports (in cases of identity theft), credit reports, and any correspondence with the creditor. Presenting this evidence to the court can help you prove that the debt is not yours and stop the garnishment.
Improper Procedures
Creditors must follow specific legal procedures to garnish their wages. If they fail to do so, you have the right to challenge the garnishment. For example, the creditor must provide you with proper notice of the garnishment action. This notice should include information about the debt, your rights, and how to challenge the garnishment. If you did not receive this notice or if it was not served correctly, you can argue that the garnishment should be halted. Additionally, creditors must obtain a court judgment before garnishing your wages. If they did not obtain this judgment or if there were errors in the court process, you can challenge the garnishment on these grounds. Keep all records of communications and court documents to support your case.
Financial Hardship
If the wage garnishment is causing significant financial hardship, you can request a reduction or exemption. This is especially relevant if the garnishment leaves you without enough income to cover basic living expenses such as rent, utilities, food, and medical bills. To challenge the garnishment on these grounds, you will need to provide a detailed account of your financial situation. This includes pay stubs, a list of monthly expenses, bank statements, and any other evidence that demonstrates your financial hardship.
How a Lawyer Can Help You With Contesting Garnishment
To challenge a wage garnishment, you must act quickly. Here’s how to proceed:
File a Claim of Exemption
The first step in contesting a wage garnishment is to file a Claim of Exemption. This form, available from the court, allows you to request that the court reduce or eliminate the garnishment based on your financial situation. A lawyer can help you fill out this form accurately, ensuring all necessary information is included and properly documented. They can also help you understand which exemptions apply to your specific situation under California law.
File a Motion to Quash or Vacate
If you believe the debt is not yours or there has been a mistake, a lawyer could file a motion, asking the court to stop the garnishment entirely. A lawyer can help you gather the necessary evidence, such as payment receipts or records showing the debt is not yours. Lawyers understand the legal grounds for quashing or vacating a garnishment and can argue effectively in court to protect your interests.
Submit Evidence
Gathering and submitting evidence is a crucial step in challenging a wage garnishment. You will need to provide documents that support your claim, such as pay stubs, bank statements, bills, and any other evidence that demonstrates your financial situation and any errors in the garnishment process. A lawyer can assist you in identifying the most relevant documents and organizing them effectively. They can also help you draft a clear and compelling narrative that explains why the garnishment should be reduced or eliminated.
Attend the Hearing
Having a lawyer by your side during the hearing can make a significant difference. Lawyers are trained to argue cases in court and can present your evidence in the most effective manner. They can also cross-examine any witnesses the creditor might bring and challenge the creditor's evidence. Additionally, a lawyer can respond to any legal questions and concerns the judge might have.
How a Lawyer Can Help Beyond the Basics
Legal Strategy and Advice
A lawyer can help you develop a comprehensive legal strategy tailored to your specific situation. They can advise you on the best course of action. They can also help you understand the likely outcomes of different strategies and what to expect during the legal process.
Negotiation with Creditors
In some cases, it might be possible to negotiate directly with the creditor to reduce the amount of the garnishment or set up a different repayment plan. A lawyer can negotiate on your behalf, leveraging their knowledge of the law and their experience dealing with creditors. They can potentially help you achieve a more favorable outcome than you might be able to secure on your own.
Handling Legal Paperwork
Legal paperwork can be complicated and overwhelming, especially if you’re not familiar with the legal system. A lawyer can handle all the necessary paperwork for you, ensuring that everything is filed correctly and on time. This can help prevent delays and increase the likelihood of a successful challenge to the garnishment.
Protecting Your Rights
A lawyer is there to protect your rights throughout the process. They can help you understand your legal rights and ensure that the creditor follows all legal procedures. If the creditor violates your rights, your lawyer can take action to hold them accountable and seek any remedies available to you under the law.
Emotional and Psychological Support
Dealing with a wage garnishment can be incredibly stressful. Having a lawyer on your side can provide peace of mind, knowing that you have someone fighting for your interests. They can offer reassurance and support, helping you navigate the process with confidence.
Importance of Timely Action
It’s crucial to act quickly if you want to challenge a wage garnishment. The law typically gives you a limited time to stop a garnishment, usually within 15 days of receiving notice of the garnishment. Delaying action can result in continued garnishment, making it harder to recover any money already taken.
If the garnishment has already started, your employer is legally required to withhold a portion of your wages and send it to the creditor. The longer you wait, the more money will be garnished. Acting quickly can help protect your income and prevent further financial hardship.
Consider seeking help from a legal aid organization or a lawyer who specializes in debt defense. They can help you understand your rights and guide you through the legal process to challenge the garnishment effectively. Taking timely action can help protect your income and ensure that you are not unfairly burdened by the garnishment.
Understanding your rights and the legal procedures can make a significant difference in managing a wage garnishment. By knowing how to claim exemptions and challenge unfair garnishments, you can better protect your income and financial well-being.
Alternatives to Wage Garnishment
If you are facing wage garnishment, you have several options to consider. First, you can try negotiating with your creditors. They may be willing to work out a payment plan that you can afford. Often, creditors would rather receive some payment than go through the process of garnishment. It’s helpful to show your creditors a clear picture of your financial situation, explaining why you need more manageable payments.
Another option is debt consolidation or settlement. Debt consolidation involves taking out a loan to pay off your debts, which can simplify your payments and may lower your interest rate. This can make it easier for you to keep up with your monthly payments and avoid garnishment. Debt settlement involves negotiating with creditors to pay a lump sum that is less than what you owe. This can significantly reduce your debt, though it may impact your credit score. Be aware that forgiven debt may be considered taxable income.
Finally, you might consider filing for bankruptcy. Many unsecured debts are eliminated through Chapter 7, while Chapter 13 bankruptcy allows you to create a repayment plan to pay off your debts over time. Bankruptcy has long-term consequences for your credit, but it can provide a fresh start if you are overwhelmed by debt. Federal bankruptcy laws protect you from wage garnishment once you file, giving you immediate relief from creditors’ collection efforts.
Each option has pros and cons, so it's important to consult with a lawyer to determine what best fits your needs.
California Consumer Protection Lawyers
If you are dealing with wage garnishment, it’s important to understand your legal rights and options. The consumer protection lawyers at Fitzgerald & Campbell, APLC can help you navigate the complexities of wage garnishment and find the best solution for your situation. Our firm has decades of experience in protecting debtors from aggressive creditors and can provide the guidance you need. To get help with your wage garnishment case, contact Fitzgerald & Campbell, APLC by calling/text to (855) 709-5788 or by contacting us online for a consultation. Or email to intake@fclawoffice.com. Consultations are free and easy to schedule.