Re: How does wage garnish work w/ financial statement?

Posted by Lee (12.246.191.230) on August 09, 2003 at 19:51:44:

In Reply to: How does wage garnish work w/ financial statement? posted by Anon on August 09, 2003 at 17:09:10:

In CA, an employer may not terminate for only one garnishment. They may use a second one as an excuse to fire someone, but they'd probably not term a productive person. However, my aunt works at UPS and I've heard that they are rather bureaucratic and have a lot of stupid policies that take the place of rational thought.

You can get a "claim of exemption" from the levying officer. Complete that form and the financial statement. Both of your incomes, property and expenses must be declared unless you are living separate and apart. If the creditor does not object, then within 10 days the levying officer will order the employer to reduce or stop the witholding. You may also get back some earnings.

If the creditor objects, there will be a hearing. The creditor may appear to argue against the exemption or not appear and leave it to the court's judgement.

Claims of exemption should be filed for all garnishment orders. If the first order takes the maximum allowed, then the others must wait their turn.

It may hurt you some to spread out the garnishments due to the processing fees. The employer may keep up to $1 per check to cover their costs, and the levying officer takes $8 per payment received. If you can do it, a 401(k)loan at 4-6% may be less costly than the $18 in monthly fees plus 10% judgement interest. However, you must repay that very soon upon termination of employment or you pay a tax penalty for early withdrawal. Check with a financial consultant for advice that suits your situation and needs.

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