When a person has an unpaid bank debt, the creditor may take legal action to recover the money, and one of the most severe measures is wage garnishment. This process can significantly impact the debtor’s financial stability by reducing their monthly income and limiting their ability to cover essential expenses.
In this article, we will explain how wage garnishment for bank debt works in Miami, Florida, what rights the debtor has, and what options are available to avoid or stop the garnishment.
What is wage garnishment for bank debt?
Wage garnishment is a legal process in which a creditor obtains a court order to withhold a percentage of a debtor’s salary to repay an outstanding debt. In the case of bank debts, this garnishment may occur when the debtor has failed to make payments on credit cards, personal loans, or other financial products.
The employer is legally required to withhold the portion of the salary specified in the court order and send it directly to the creditor until the debt is fully paid or a different agreement is reached.
When can a bank garnish your wages in Miami, Florida?
For a bank to garnish your wages in Miami, Florida, it must first follow these steps:
Creditor’s Lawsuit: The bank or financial institution must file a lawsuit in court, claiming nonpayment.
Trial and Judgment in Favor of the Creditor: If the judge determines that the debt is valid and the debtor has not fulfilled their obligations, they will issue a judgment in favor of the creditor.
Garnishment Order: With the judgment in hand, the creditor can request a wage garnishment order, which is sent to the debtor’s employer.
Salary Deduction: The employer will begin withholding a portion of the salary and sending it to the creditor as specified in the court order.
How much of your wages can be garnished in Florida?
In Florida, the law sets limits on how much money can be garnished from a worker’s wages. According to federal and state law:
Generally, no more than 25% of a worker’s net wages can be garnished.
If the debtor’s wages are equal to or less than the federal minimum wage multiplied by 30 hours per week, garnishment cannot be carried out.
Some debts, such as child support, taxes, or federal student loans, have different rules and may allow for higher garnishments.
Additionally, if the debtor is the primary breadwinner for their household, they may be exempt from garnishment under Florida’s head of household law, but they must file a request with the court to claim this protection.
How to stop a wage garnishment for bank debt?
If you have received a wage garnishment notice, there are still options to stop or reduce the impact of this measure:
1. Negotiate with the creditor
Before the bank resorts to garnishment, you can contact the creditor directly and try to negotiate a payment plan or a reduction of the outstanding balance.
2. File an appeal in court
If you believe the garnishment is improper or violates wage protection laws, you can file an appeal to stop the process.
3. Claim the "head of household" exemption
If you are the primary provider for your household and your income is below a certain threshold, you may qualify for an exemption that prevents your wages from being garnished.
4. File for bankruptcy
If you have multiple debts and cannot keep up with payments, bankruptcy may be a viable solution. Both Chapter 7 and Chapter 13 can stop wage garnishment through the “automatic stay,” which prevents creditors from continuing collection actions while the bankruptcy case is ongoing.
5. Seek legal advice
A debt attorney in Miami, Florida can help you evaluate the best strategy to stop a wage garnishment and protect your financial stability.
Frequently Asked Questions (FAQs)
Can a bank garnish my wages without prior notice?
No. For a bank to garnish your wages, it must first obtain a court order and notify you of the process.
Does wage garnishment affect my credit history?
Yes. A garnishment is a sign that you failed to pay a debt and can negatively impact your credit score.
How long does a wage garnishment last?
The garnishment will continue until the debt is paid in full or an agreement is reached with the creditor.
What happens if I change jobs while I have a wage garnishment?
The creditor can request a new order for your new employer to continue withholding your wages.
If you are facing wage garnishment for bank debt in Miami, Florida, it is crucial to act quickly. At Peraza Law, we can help you explore legal options to stop or reduce the garnishment and regain your financial stability.
Disclaimer
The information provided in this blog is for general informational purposes only and should not be construed as legal advice. While we strive to present accurate and up-to-date information, the law is constantly evolving, and the content may not reflect the latest legal developments.
No attorney-client relationship is formed by your use of this blog or any communication through it. For specific legal advice regarding your situation, consult with a qualified attorney. Your use of this blog does not constitute an invitation to form an attorney-client relationship, and any communication through this platform does not guarantee confidentiality. Always seek the advice of a licensed attorney for any legal questions or concerns you may have.
Leave a Reply
You must be logged in to post a comment.