Can My Ohio Wages Be Garnished by North Carolina for Past Due Property Taxes?
If you owed property taxes in North Carolina, but moved to Ohio, your wages can be garnished until your tax debt is paid in full. In fact, creditors often successfully garnish the wages of out-of-state debtors. Although some creditors must go through an extra step to reach a debtor in another state, other creditors don't even need a court judgment to garnish a debtor's wages.
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Overview
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If your debt originated in North Carolina, the creditor in North Carolina must follow Ohio state law because you live there now. According to Ohio law, creditors cannot take more than 25 percent of your disposable earnings per paycheck. However, if your debt happens to be unpaid child support or unpaid state or federal taxes, as much as 50 percent of your disposable earnings can be taken per paycheck. The definition of "disposable earnings" is that which is left of your paycheck after you've paid mandatory deductions such as unemployment, union dues, workers compensation and taxes.
Procedure
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Most out-of-state creditors must initially obtain a court judgment against a debtor in the creditor's home state. Once a judgment is obtained, the creditor typically must ask a court in the debtor's home state to enforce the judgment. If the court agrees to honor the judgment, then notification of the judgment is sent to the debtor's employer. The employer is then responsible for making appropriate deductions and sending them to a levying officer or a trustee.
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Administrative Wage Garnishment
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Some creditors, such as federal student aid and the IRS, don't need to seek a court judgment. In fact, these creditors can automatically seize assets in bank accounts or send an administrative wage garnishment order directly to a debtor's employer. As such, if a debtor became indebted in one state, but moved to another state, wages or a bank account can be garnished without the need to go to court.
Additional Considerations
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If the state of North Carolina is garnishing your wages in Ohio, you should speak to your employer to ask for a copy of the garnishment order. The order should have contact information for the court, levying officer or North Carolina municipality involved in the garnishment. It's worth it to contact your tax creditor directly to ask if you can work out a payment plan if, that is, you want the garnishment to stop. If you don't believe you owe any money to North Carolina, you should speak to an Ohio attorney experienced in labor law.
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