Does Something Have to Be Filed With the Court for a Wage Garnishment in Another State?

The procedure for obtaining a garnishment order against someone in another state is more complicated than obtaining a garnishment order against someone in-state. Oftentimes, debtors owe companies or entities based in another state. When a debtor defaults on debt, but lives in a state different to that of the state where the creditor is domiciled, the creditor typically must abide by special court procedures.

Garnishment Procedure Overview

Typically, creditors have a somewhat uncomplicated procedure to follow when attempting to obtain a garnishment order against an in-state debtor. Usually, creditors must simply file for an order of garnishment. If the court approves, the creditor can then collect debt via an employee's paychecks. The creditor's order for garnishment is sent to the employee's employer -- usually the payroll department -- and deductions are made from the employee's "disposable earnings."

Civil Procedure

Civil procedure is a set of rules that all courts require claimants to follow. This set of rules dictates the procedure a plaintiff must follow when filing a claim against a defendant. Included in rules of civil procedure are guidelines that establish which court has "personal jurisdiction" over specific people. Personal jurisdiction is established, meaning a court can hear a claim, if the court has a right to assert jurisdiction. Asserting personal jurisdiction is only appropriate when a defendant is in close enough geographic proximity to challenge a claim against him without it causing hardship. Additionally, personal jurisdiction is appropriate in a state court if the defendant visits the state frequently. As such, if a defendant conducts business in a particular state on a regular basis or owns property in a particular state, that state is not overstepping its authority by hearing a case against that defendant.

Domestication

Oftentimes, out-of-state creditors must "domesticate" a claim for garnishment if they are based in a different state than the debtor. Domesticating a claim is a complex procedure -- usually requiring additional time and money -- requiring a creditor to move a lawsuit from one state court to another. Out-of-state creditors must receive permission from a court in another state in order to move the lawsuit there. Typically, the creditor must obtain a judgment in its home state, then file a claim to enforce the judgment in another.

Specific Creditors

Some creditors don't have to seek garnishment orders from a court. The Internal Revenue Service, child support creditors and federal student aid collectors have special privileges. These creditors collect debt via "administrative wage garnishment." This means these creditors have special permission to bypass courts; they can simply seize a debtor's financial accounts, such as savings and/or checking accounts.

References

• LexisNexis: Personal Jurisdiction
• Vann & Sheridan Attorneys at Law: Enforcement of Foreign Judgments - Information for Creditors Regarding Collecting Out-of-State Judgments
• Federal Student Aid: Administrative Wage Garnishment
• TaxDebtHelp.com: Wage Garnishment / Tax Levy Frequently Asked Questions (FAQs)