What Happens If You Receive a Wage Garnishment & are Unemployed?

A wage garnishment is a common tool used by a creditor to collect money from a debtor.

A wage garnishment is an order obtained by a creditor directing your employer to withhold a certain percentage of your wages, provided you maintain employment. The funds withheld are paid to the creditor to go toward satisfying a debt you owe.

Effect

Nothing occurs if a wage garnishment issues and you are not employed. A wage garnishment applies only to income earned from an employer.

Time Frame

What commonly occurs is that a creditor obtains a wage garnishment on a former employer, not knowing of your change in employment status. Such a garnishment usually issues shortly after you separated from employment.

Warning

Simply because a creditor cannot obtain an effective wage garnishment does not mean it cannot pursue other means of collection, even if you lack employment.

References

• Lawyers.com: Garnishment
• "An Attorney's Guide to the Collection of Bad Debts"; Robert L. Lewis; 2007
• "Collection Agency Harassment: What the Debt Collector Doesn't Want You to Know"; Richard L. DiMaggio; 2002

Resources

• U.S. Department of Labor: Wages and Hours Worked: Wage Garnishment
• Small Claims Court Forms: State Wage Garnishment Laws
• American Bar Association: Directory of State and Local Bar Associations