Citibank Judgment & Wage Garnishment

[chinabloo]

What is the name of your state? Ohio

Citibank has a judgment against me for around $7500 and also a lien on our house for that judgment.

I knew it was coming, but I just got the notice that they are going to garnish my wages. This would come to the tune of over $800/month since it is 25% pre-tax and before any non-required deductions such as our health insurance, dependent care, and 401K.

If this happens, we will lose everything not to mention not be able to feed and clothe our 14 month old.

I am going to court, but I'm sure it's futile.

Is it too late to try to settle? We may be able to borrow some money from my husband's sister.

 

[dequeendistress]

Are you scheduled a court date after the garnishment and property lien was awarded?

 

[bigun]

If your circumstances are this dire, you need to see a bk lawyer.

 

[JETX]

"This would come to the tune of over $800/month since it is 25% pre-tax and before any non-required deductions such as our health insurance, dependent care, and 401K."
*** Where did you get that?? Ohio follows the federal exemptions of:
"75% of disposable earnings per week, or an amount = to 30 x federal minimum hourly wage, whichever is greater."

The only difference is that Ohio limits the garnishment to once per month per employee.

"Disposable earnings" is the amount of earnings left after legally required deductions (e.g., federal, state and local taxes, Social Security, unemployment insurance and state employee retirement systems) have been made. Deductions not required by law (e.g., union dues, health and life insurance, and charitable contributions) are not subtracted from gross earnings when the amount of disposable earnings for garnishment purposes is calculated.

How much do you make in order to have $800 per month above your allowed exemptions?

 

[chinabloo]

The hearing will be in about 2 weeks. It's a garnishment hearing. Judgment and lien are already awarded.

Unfortunately, BK is pretty much out of the question. We already talked to one a little over a year ago.

Too many assets for Chapter 7 and Chapter 13 would have to be paid back at 100%.

The problem is that I have a loan out on my 401K which MUST be paid back at 100%. Apparently since my company takes the payments right out of my check, there is no way to stop the payments and just convert the loan to a distribution and take the tax hit.

I did mis-speak in my first post - the garnishment is NOT pre-tax, but it is figured on the wage before those other things are taken out.

If we can get a loan from a family member is it too late to try to settle at this point?

 

[JETX]

Its never too late to settle.

 

[chinabloo]

Should I write to Citibank or the attorney's office here in Ohio to try to settle? (again, assuming we can borrow the money from family).

JETX...

I must have been posting at the same time as you earlier. I realized while I was at lunch that I had mis-spoken about this being pre-tax.

The woman I spoke to at the municipal court office said it was 25% every time I get paid which is 2X per month. I make almost 70K per year. The figure actually comes to $562.44 per paycheck now that I look at it again in detail.

If it's only once/month, that's more managable, but would still be a terrible hardship.