Garnishment

[eli4625]

What is the name of your state (only U.S. law)? IN
In Indiana it says that garnishments can not exced 25%, so does that mean the judge can make it a lower percentage, or is it 25% no matter what?

 

[ecmst12]

A garnishment order is going to be for the maximum amount allowed by law. The only reason it might be less is if there are 2 garnishments in place at the same time.

 

[eli4625]

Total can not exceed 25%

So if you had say 2, they together can not excede 25%? Does the court decides who gets what or is it a 12.5/12.5 split? Is it true some states do not permit garnishments?

 

[ecmst12]

I believe if there are multiple garnishments, they split the 25% equally.

Yes, some states (including mine) do not allow wage garnishments for ordinary judgements. In PA at least, garnishments are allowed only for taxes and child support. I think the other no-garnishment states have similar rules.

 

[JETX]

So if you had say 2, they together can not excede 25%? Does the court decides who gets what or is it a 12.5/12.5 split? Is it true some states do not permit garnishments?

And the CORRECT answer is.....

Per Indiana Code:
IC 34-25-1 Payment of costs and expenses; proportional payment of multiple creditors; surplus
Sec. 4. The money realized from the attachment and the garnishees, under the direction of the court, and after paying all costs and expenses, shall be paid to the several creditors in proportion to the amount of their several claims as adjusted. The surplus, if any, shall be paid to the defendant.

Example: Two garnishments, one for $1000 and one for $500
Any funds, after costs, would be split with 2/3 to the larger judgment and 1/3 to the smaller... until one is paid off, then the full 25% to the remaining judgment until paid in full.

 

[eli4625]

Question

Thank you for the info, but it is kinda of confusing. Say you bring home $650 after taxes twice a month. You have garnishment one in place taking the 25%, then a second gets filed, how would the second be done? They can't garnish all of it can they? Also, if you are being garnished, and you file bankruptcy, how quickly does the garnishments stop and whom notifies them to stop?