wage Garnishment Process

[Mjb72]

What is the name of your state? Wisconsin

I have read through the forum here anf cant really find an answer to my question so Im hoping someone can help me.

First my situation in a nutshell. Im divorced and in the process have been saddled with many debts, most of them medical. I think Ive gotten letters from about every collection agency in the midwest. I of course get the pleasure of paying 117.00 a week in child suport while my ex who was cheating on me is driving around in a 2000 something Pontiac and living in a house that her and her new husband bought. Yea, got to love Wisconsin marital law. Anyhow enough of that.

I currently have a judgment against me from Capitol one of 733.00. Today I recieved a mailing from the debt collectors office. I recieved an Affidavit of Mailing,earnings garnishment Exemption notice,debtors answer sheet and a garnishment exemption worksheet. I did some research and I dont know if I understand it all correctly, seems this is the first step to a garnishment order.

In a nutshell, I did research the fair debt collection law and I know that only 25% of my disposable income is garnishable, about 20% of that is eaten by Child support so by my calcualtions they could get roughly 25.00 a week from me. I guess it may sound kind of strange but I could give a rats ass if they get the garnishment. Ironically enough I just wish they would go ahead and do it, then the next guy can wait in line. Im in such a situation with all the collecters after me that even if I took that $100 and split it between them all ID never get them paid off plus Im sure they wouldnt have been satisfied anyhow.

I apologize for the rambling here but my big question is what happens next and how do I protect myself from being garnished over that 25% limit? I tried to look it up online but everything seems so cryptic. Im hoping someone could explain it in simple terms to me, I would really apreciate it.

Also, because I suspect it may come up. I filed for Ch7 bankruptcy in 2000, I was granted a discharge in Jan of 2001. As far as I know, Im not able to file for another year yet. If I could I would certainly look into it about now because I dont see any feasable way to pay off all the debt I have with what I take home.

Thanks in advance to anyone who can give me some info

MJB

[Chien]

Q. how do I protect myself from being garnished over that 25% limit?

A. Unless my resources need updating, your state is lower and limits garnishment by exempting 80% of net wages. What exactly do you mean by "protect" yourself. Even if the amount susceptible to garnishment is higher (as you seem to think), it can't be exceeded.

[Mjb72]

Originally Posted by Chien

Q. how do I protect myself from being garnished over that 25% limit?

A. Unless my resources need updating, your state is lower and limits garnishment by exempting 80% of net wages. What exactly do you mean by "protect" yourself. Even if the amount susceptible to garnishment is higher (as you seem to think), it can't be exceeded.

Im a bit confused there myself. The paper I have is a bit contradictive. First it says that by law Im entitled an exemption of not less then 80% of my "disposable earnings" then it on the worksheet it goes ti 25% so Im a bit confused with that. As far as "protecting myself" Im unsure what entity as it were regualtes the garnished amount. Im uncertain if the court does it or if by law my employer could not exceed 25% of my disposable income. Like I said, all this paperwork seems a little cryptic. My biggest fear is being the underdog of sorts here where as the big law firm knows the law, I dont and get taken advantage of. In any case 80% of my net vs 25% of my disposable is about the same. The 80% of net comes out about $10 in my favor, not much of a difference.

Thanks for the reply
MJB

[Chien]

Unless the garnishment is for court-ordered support or taxes, the exemption figure is 80%. Please review the follow excerpt from Wis. Stats. with particular attention to sect. 812.34. You will note that the garnishment can be even more limited, if the amount to be withheld puts the garnishee under the federally-defined poverty line, but it will not be more.
[url] http://www.legis.state.wi.us/statutes/Stat0812.pdf[/url]

My resource referred to the limit as of “net income” and the statute refers to “disposable income”. The latter is the more common terminology, but they amount to the same thing: income after taxes and any other mandatory withholding.

I can’t explain the 25% (vs. 20%), but you’ll see that you’re looking at 2007 Statutes at that link. That is the state law of your state, and I would expect it to be the same in instructions given to the employer. You will also note in the link that there are provisions for appealing an excessive garnishment (one that would place you below the poverty level with or without any additional exemptions available) by way of motion to the court.

In short, regardless of how big they are, they can’t take and your employer need not release more then is permitted by law. Please read the statute. I don’t think you’ll find it that difficult to understand, and I hope it puts your concerns to rest.

[Mjb72]

Thanks for the reply. I will read through the document and hopefully lear more. Now that you said it I actually relized I was confusing Net Income with Gross income. Now that makes a little more sense, thanks for clearing me up.

Mjb