What if I Have No Wages to Garnish Except Unemployment?
One of the most effective debt collection tactics available is wage garnishment. Instead of requiring the debtor to make the payments on his own, the creditor relies on the employer to divert the necessary money. If you have no wages because you're unemployed, it's possible for creditors to garnish your unemployment benefits if your state allows it.
Other People Are Reading
-
Wage Garnishment
-
Wage garnishment is the process of taking a portion of debtor's paycheck to pay the money owed to a creditor. It requires the creditor to get a judgment from the courts and serve the debtor's employer through the local sheriff's department. Then, the employer is required to deliver a certain amount of each of the debtor's paycheck to the creditor until the debt is paid.
Unemployment Garnishment
-
Some workers believe that wage garnishment only occurs if you're receiving a paycheck. If you're collecting unemployment benefits instead a salary, it's possible for a creditor to garnish your unemployment benefits. Many states limit the garnishment to certain debts, such as child support obligations. It just depends on the state in question and its laws.
-
Notification
-
If your unemployment benefits are being garnished, your state sends you a notice by mail of it, including the name of the creditor garnishing your wages. If your state gives you payment stubs for your unemployment, it also lists the amount garnished from each one. Finally, at the end of each year, your state prepares a 1099G tax form detailing all of the unemployment compensation you collected throughout the year. The amount diverted for the garnishment appears on that form, too.
More Information
-
Both unemployment laws and garnishment laws are state specific, making it difficult to give specific information without knowing the state you live in. The best place to find information specific to your situation is your state's unemployment division of its labor office. You can call the claims line or access the claims website to find information about unemployment wage garnishment in your state.
-
