Can Wages Be Garnished if I Live in a Different State From the Judgment?
In many states, a creditor who has obtained a judgment against you for an unpaid debt can garnish your wages to recover the funds. In most cases, the creditor obtains his judgment in your state of residence. However, you may wonder what happens if the creditor attempts to garnish your wages with an out-of-state judgment.
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About Wage Garnishment
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Wage garnishment occurs when a judgment creditor seizes a portion of your income each period to repay a debt. Under federal law, a creditor can't typically seize more than 25 percent of your income after taxes to repay a debt. However, if the creditor is garnishing your wages for unpaid child support or government debts, he may be able to garnish up to 60 percent of your income after taxes. Some states, such as Texas and South Carolina, don't allow wage garnishment for most debts.
Out-Of-State Orders
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Out-of-state garnishment orders most often occur because you incurred debt in one state and moved to another. When a creditor obtains an out-of-state garnishment order and sends it to your employer, the employer must decide whether the law requires him to honor it. If the employer honors it, the garnishment order will typically be subject to the procedures and rules of the state that issued it, rather than your state of residence.
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State Laws
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State laws regarding out-of-state garnishment orders differ, but many states won't recognize a garnishment order unless the state issuing the order had jurisdiction over the debtor when the creditor obtained the judgment. The court that issued the judgment behind the garnishment order must also have done so within the statute of limitations for the debt. If your employer receives an out-of-state garnishment and you don't believe it complies with your state's laws, you can dispute the order in court.
Considerations
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If you live in a state that doesn't allow wage garnishment, a creditor may domesticate a judgment in a state that allows garnishment and use it to take a portion of your income. To domesticate a judgment in a different state, the creditor must obtain a judgment in your state and ask the other state's court to validate it. Because the court that issues the initial judgment must have jurisdiction over the debtor at the time of the decision, creditors must first obtain a judgment in the debtor's home state before domesticating it in another state.
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References
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