Hardship Due to a Wage Garnishment

Wage garnishments can only be ordered by the court.

Garnishing a debtor's wages is one option for collecting a judgment. When a garnishment becomes a significant financial hardship, it is sometimes possible to have the garnishment reduced until the debtor's circumstances change.

Wage Garnishment

Wage garnishment is a way of collecting a debt. A debtor's employer is ordered by a court or government agency to deduct a percentage of the debtor's wages from her paycheck. This money is then distributed to the creditor.

Who to Contact

If your wage garnishment is a result of tax debt, contact the pertinent tax authority, such as the IRS or your state's department of revenue, and ask for help. If the garnishment is to repay a student loan debt, file a hardship claim with the Department of Education or the guaranty agency that holds your loan. Otherwise, go to the court that ordered the garnishment to request relief.

Determining Hardship

The courts, private businesses, tax authorities and student loan agencies all have different standards for determining "hardship." You will need to provide documentation of all your financial assets, and expenses in order to establish your need for hardship relief.

Bankruptcy

If your debts are overwhelming and garnishment is making the situation worse, consider filing for bankruptcy. Keep in mind that student loan debt, some tax debts, and neither child support nor alimony can be discharged in bankruptcy.

References

• Federal Student Aid: Administrative Wage Garnishment
• Student Loan Borrower Assistance: Administrative Wage Garnishments
• Tax Debt Help: Stopping or Protect Against IRS Wage Garnishment - Release a Wage Levy
• Internal Revenue Service: Levy
• Nolo.com: What Bankruptcy Can and Cannot Do