If a person falls behind on payments, the creditor can garnish their wages until the debt is repaid. Facing wage garnishment is incredibly overwhelming. Yet, understanding the laws can provide an opportunity to move forward. While an attorney can provide more detailed information, here's a quick overview of the basics. 

How Does Wage Garnishment Work?

In most situations, creditors need to go to civil court to obtain a garnishment. This step usually occurs after judgement has been given in the account owner’s favor. If the garnishment is approved, then the court serves the official paperwork to the individual’s employer, who will pull out the funds and send to the creditor. 

There are limits on how much can money can be garnished. In Nebraska, the amount can’t exceed 25 percent of the debtors weekly disposable earnings, which is any income above 30-times the federal minimum wage. However, if they’re the head of the family (main financial provider), then the allowed garnishment is reduced to 15 percent. 

For certain types of debts — mainly government options, a court order isn’t required. Such is the case for unpaid student loans, child support, and taxes. In such situation, the garnishment amounts allowed are different: 15 percent for student loans and 50 percent for child support. Tax allowances vary based on the payer’s exemptions and amount owed. 

What to Do About It

Once a wage garnishment has been approved or enacted, quick action is necessary to prevent further financial hardship. It’s possible to work out a different payment arrangement with he creditor, but once a ruling is in place, they’re less likely to negotiate. If the request is a mistake, such as it already being paid off, it’s possible to contest the judgement with the help of an attorney. 

Often, unpaid debts are a symptom of a much larger financial problem. If rising debts have become overwhelming, filing for bankruptcy may be a smart economic option. Once the petition is filed with the court, it’ll halt garnishments in most cases — child support, taxes, and student loans are usually exempt. 

If you’re facing wage garnishments, reach out to Sam Turco Law Offices in Omaha, NE, to review your options. The local attorneys offer personalized case reviews in the areas of debt and bankruptcy law. Find out how the lawyers can assist your situation online or by calling (402) 614-7171 a consultation.