Wage Garnishment Against a Married Couple

[Blossom]

My question involves judgment recovery in the State of: Ohio

A law firm won a judgment against my husband and I for city taxes.

They now sent us each a notice of garnishment. We have 15 days to pay an amount equal to 25% of our gross pay after taxes to avoid wage garnishment.

Can they demand 25% of EACH of out incomes since this is a joint debt? That will be approximately $1400 a month for a $2600 debt!

If that's the case, that will leave us literally unable to feed our kids after we pay our rent, utilities, car payment, etc.

Do we have any recourse?

Can the creditor garnish our checking account as well, even if we're paying them the amount necessity avoid garnishment as stated on the letter?

Any help appreciated!

[adjusterjack]

My question involves judgment recovery in the State of: Ohio

A law firm won a judgment against my husband and I for city taxes.

They now sent us each a notice of garnishment. We have 15 days to pay an amount equal to 25% of our gross pay after taxes to avoid wage garnishment.

It's not 25% of your gross pay. It's 25% of your disposable income. Disposable income is what's left after mandatory deductions for federal taxes, social security, and state taxes.

The actual exemption is addressed in Ohio statute 2329.66 Section 13 (a) and (b):

"(13) Except as provided in sections 3119.80, 3119.81, 3121.02, 3121.03, and 3123.06 of the Revised Code, personal earnings of the person owed to the person for services in an amount equal to the greater of the following amounts:

(a) If paid weekly, thirty times the current federal minimum hourly wage; if paid biweekly, sixty times the current federal minimum hourly wage; if paid semimonthly, sixty-five times the current federal minimum hourly wage; or if paid monthly, one hundred thirty times the current federal minimum hourly wage that is in effect at the time the earnings are payable, as prescribed by the "Fair Labor Standards Act of 1938," 52 Stat. 1060, 29 U.S.C. 206(a)(1), as amended;

(b) Seventy-five per cent of the disposable earnings owed to the person."

http://codes.ohio.gov/orc/2329.66

Can they demand 25% of EACH of out incomes since this is a joint debt? That will be approximately $1400 a month for a $2600 debt!

Yes.

They can file the wage garnishment with each of your employers.

That will be approximately $1400 a month for a $2600 debt!

If that's the case, that will leave us literally unable to feed our kids after we pay our rent, utilities, car payment, etc.

Do we have any recourse?

No.

Can the creditor garnish our checking account as well, even if we're paying them the amount necessity avoid garnishment as stated on the letter?

Yes, they absolutely CAN go after your checking account as well.

That's why when you pay voluntarily, DON'T use checks from your checking account and DON'T use cashier's checks or money orders from your own bank.

Use USPS money orders and keep photo copies of each one.

If you identify your bank to the creditor it's likely that the creditor will jump right on it.

I suggest you each figure out what your disposable income is and buy a money order for each of you and send it with your calculations of the amount and do it ASAP no matter what other hardships you might suffer.

Because if they garnish both your wages there will be two sets of court fees that will be added to the debt plus the attorney fees to handle the garnishment filing and administration. That'll run your debt to well over $3000 real fast and it will keep growing each time the lawyers have to do something on the account.

[Blossom]

So they CAN garnish our checking EVEN if we're voluntarily paying?!

And my pay stubs and possibly my husband's show the bank that our pay is being direct deposited to. Can I black that out before sending copies of our pay stubs to the creditor? They want our last two pay stubs.

Our last two stubs though aren't representative of our normal income though, as we both had overtime on them that's since been cut. What about that?

Also, I have mandatory deductions from my pay for state retirement, as I am a,government employee - I pay this in lieu of Social Security by law. Mandatory union dues. Is it 25% of my pay after those plus taxes? What about health insurance? I pay for my family's health insurance through payroll deduction. That's mandatory by law now too, under the Affordable Care Act.

Please advise. Thank you.

- - - Updated - - -

As a note, the amount above already includes legal fees, penalties and interest.

[HRinDEVON]

The statute that counts is one posted by adjusterjack ...now you may have a point as to mandatory deductions not covered by that law...but a debate on that resolution may be quite costly.

I'm not sure if your post means to voluntarily send us 25% of your gross pay as reflected by your pay stubs or else we will garnish 25% of net or whatever is allowed by law. Some people would rather not let employer know they are being garnished. your call.

I agree with adjusterjack..Do not provide information beyond legal duty to do so....unless you want to hand out roadmaps of where to pounce on your money.

[Blossom]

Yes, that's basically what it is, HR. I know the health insurance part is probably debatable. But my state retirement deduction in lieu of Social Security and my union dues are absolutely mandatory. The state retirement deduction is required by law since I am a government employee.

[adjusterjack]

So they CAN garnish our checking EVEN if we're voluntarily paying?!

Yes.

And my pay stubs and possibly my husband's show the bank that our pay is being direct deposited to. Can I black that out before sending copies of our pay stubs to the creditor? They want our last two pay stubs.

Yes, black out the bank identifying information.

Our last two stubs though aren't representative of our normal income though, as we both had overtime on them that's since been cut. What about that?

Had the wage garnishment already been in effect the overtime would have been included in the computations.

Your computations should start with the gross amount including overtime and work down from there. Next month when you make another payment you can reduce it based on actual pay without overtime and submit more current pay stubs.

Also, I have mandatory deductions from my pay for state retirement, as I am a government employee - I pay this in lieu of Social Security by law. Mandatory union dues. Is it 25% of my pay after those plus taxes? What about health insurance? I pay for my family's health insurance through payroll deduction. That's mandatory by law now too, under the Affordable Care Act.

Deductions from gross income would include federal and state tax withholding and your state retirement contribution in lieu of social security.

Your union dues might be mandatory because of the contract between the union and the state but I don't think they would be an allowable deduction.

I also don't think your health insurance counts either. You had the health insurance when it was voluntary.

You can, of course, deduct whatever you want and send the calculations along with your payment and see if the payment gets accepted that way.