Wage Garnishment in Georgia

For many Georgians struggling with debt, the threat of wage garnishmentcan feel overwhelming. When creditors move beyond billing statements and collection calls to taking a portion of your paycheck, it not only diminishes your take-home pay but can also create considerable stress for you and your family.

While Georgia state law and federal law set specific limits on how much can be garnished from your wages, learning the process—and your rights—can be crucial in safeguarding your financial well-being. Below, we’ll explore how wage garnishment is initiated, the legal ceilings on garnishment amounts, and how filing for bankruptcy may provide a means to stop or even prevent garnishments altogether.

What Is Wage Garnishment?

Wage garnishment occurs when a creditor obtains a court order compelling your employer to withhold a portion of your paycheck to pay down an outstanding debt. Debts commonly leading to garnishment include unpaid credit card bills, personal loans, medical expenses, student loans, and child support or alimony arrears. Once a garnishment order is in effect, your employer must comply or face potential legal consequences.

Limits on Wage Garnishment in Georgia

Both Georgia law and federal statutes—specifically theConsumer Credit Protection Act (CCPA), 15 U.S.C. § 1671—dictate how much of your paycheck can be garnished. Typically, the following rules apply:

• Under the CCPA, the maximum garnishment amount is generally the lesser of 25% of your disposable earnings (what remains after mandatory deductions like federal and state taxes) or the amount by which your weekly income exceeds 30 times the federal minimum wage.
• Specific types of debt, such as child support or federal student loans, may allow creditors to garnish a higher percentage.

Georgia follows these federal guidelines, but also has its own provisions in theOfficial Code of Georgia Annotated (O.C.G.A.) Title 18, which outlines details on how creditors initiate and enforce garnishment. If the garnishment exceeds legal limits, you can file a motion in court to reduce or dissolve it, provided you demonstrate that the garnishment fails to comply with statutory rules.

How Wage Garnishment Starts

Before your pay can be garnished, a creditor generally needs to obtain ajudgment against you, unless they are a government entity collecting taxes or federally-backed student loans. The typical steps are:

1. Lawsuit Filed: The creditor files a lawsuit for the unpaid debt and serves you with notice.
2. Court Judgment: If you fail to respond or lose the case, the court issues a judgment in favor of the creditor.
3. Writ of Garnishment: The creditor obtains a garnishment order, which instructs your employer to withhold funds from your paycheck.

Once the garnishment begins, it continues until the debt is fully paid off—or until you take legal action to modify or stop it.

Stopping Wage Garnishment with Bankruptcy

Filing for bankruptcy in Georgia can immediately halt wage garnishments through the automatic stay under 11 U.S.C. § 362. The moment you file your petition, creditors must cease all collection activities, including garnishments. If a garnishment is already in place, your employer should be notified that you have filed for bankruptcy, prompting them to stop withholding money from your wages for that particular debt.

Chapter 7 bankruptcy can discharge many unsecured obligations, eradicating the debt that initiated the garnishment in the first place. However, certain debts—such as child support—remain collectible even after Chapter 7. Meanwhile,Chapter 13 sets up a repayment plan over three to five years, allowing you to handle arrears for multiple types of debt in a more organized manner. Although garnishments stop upon filing Chapter 13, you must keep up with the plan payments to maintain its benefits.

Challenging Garnishments Outside of Bankruptcy

If bankruptcy is not part of your strategy, there are still ways to address a garnishment:

• File a Motion to Vacate or Modify: If the garnishment violates legal limits or if there’s an error in the judgment, you may petition the court to reduce or dismiss it.
• Settle the Debt: Some creditors may be willing to negotiate a lump-sum settlement or a payment plan to lift the garnishment.
• Claim Exemptions: Georgia law provides certain exemptions that might protect part of your income or assets, although these often require filing formal documents with the court.

Key Takeaways

• Wage Garnishment Process: A creditor typically needs a court judgment to garnish your wages, unless it’s collecting taxes or federal student loans.
• Legal Limits Apply: Garnishment generally may not exceed 25% of your disposable earnings or the amount by which your weekly wages exceed 30 times the federal minimum wage—whichever is lower.
• Bankruptcy Can Help: Filing for bankruptcy triggers an automatic stay, halting wage garnishments for qualifying debts. Chapter 7 discharges many unsecured obligations, while Chapter 13 establishes a structured repayment plan.
• Alternative Remedies: You can potentially challenge garnishments by claiming exemptions, negotiating settlements, or filing motions to reduce or vacate the court order.

References

1. 15 U.S.C. § 1671-1677 (Consumer Credit Protection Act). (n.d.). https://uscode.house.gov/

2. O.C.G.A. § 18 (Georgia Garnishment and Exemptions). (n.d.). https://law.justia.com/codes/georgia/

3. 11 U.S.C. § 362 (Automatic Stay). (n.d.). https://www.govinfo.gov/

Disclaimer: This article is intended for informational purposes only and does not constitute legal advice. Laws may change, and each situation is unique. For guidance concerning your specific case, consult a qualified attorney in Georgia.