Understanding Ohio Wage Garnishment: What Consumers Should Know Before Creditors Take Your Paycheck
There is nothing more stressful than seeing your paycheck dwindle away because of debt. Many Ohio consumers are surprised by wage garnishment, often after a long period of debt collection and phone calls. Learning about wage garnishment and what protections exist for you under Ohio and federal law can help you take charge of the situation.
What is wage garnishment?
Wage garnishment is a process by which a creditor takes a portion of your wages by deducting it from your paycheck. In most cases, a creditor must first file a lawsuit against you, win a judgment, and then ask the court to enter a garnishment order against you. After a garnishment order is entered, your employer must turn over a portion of your income to the creditor.
Debts like child support, spousal support, federal student loans, and some taxes may be garnished without filing a lawsuit against you. These types of garnishments have different rules and allow for a higher amount of money to be deducted from your paycheck.
How much can be garnished in Ohio?
The State of Ohio also limits federal wage garnishment, which protects Ohio workers from excessive garnishment. In most cases, a creditor can garnish the lower of two amounts:
- 25% of your disposable income, or
- The amount by which your disposable income exceeds 30 times the federal minimum wage.
Disposable income refers to your income after taxes and social security. In some cases, you may be totally exempt from garnishment if your income is too low.
Ohio exemptions and protections
There are also special rules for certain kinds of income under Ohio law. For instance, social security benefits, disability benefits, unemployment benefits, and certain pension benefits are usually safe from most creditors’ attempts to garnish them. However, there are times when you may have to file paperwork to claim your rights if a creditor tries to garnish your income.
Can you stop or reduce a wage garnishment?
Yes, in many cases. A consumer has the right to contest the garnishment if:
- The creditor failed to obtain the judgment correctly
- The garnishment exceeds the legal limit
- The income being garnished is exempt
- The debt has already been paid off
Some people have the opportunity to work out a payment plan with their creditors to avoid garnishment. Others have the opportunity to explore other legal options, depending on the circumstances.
What to do if you receive a garnishment notice
If you receive a notice of wage garnishment, you should not ignore it. Failure to comply with a notice could lead to an unnecessary garnishment of funds or a garnishment of a higher amount than is allowed. Carefully examining the notice and understanding your options can be a big help.
If you’re dealing with a wage garnishment, an experienced Columbus consumer protection attorney can help you understand your options. Wage garnishment is a difficult process, but it does not have to control your financial future.
Talk to a Columbus, OH, Consumer Protection Lawyer Today
Kohl & Cook Law Firm, LLC, represents the interests of Columbus consumers who are being targeted for debt collection. Call our Columbus consumer lawyer today to schedule an appointment, and we can begin discussing your next steps right away.
