When a creditor obtains a court order to take part of your income and pay it to them instead of you, that's called a garnishment.There are some things you can do if you've been told that your income is going to be taken.Even if the debt is valid, you may be able to stop or reduce the amount of the garnishment.
Step 1: The statute of limitations may be missed.
When a claim is too old to be enforced is when the statute of limitations kicks in.The statute of limitations in Florida is 20 years.You should make a claim of exemption if the judgment is more than 20 years old.
Step 2: Make sure the amount is correct.
Make sure the total amount is correct.Until the entire debt is paid, a garnishment will be applied in Florida.You should make a claim of exemption if the amount is incorrect.The amount of the judgment is compared to the amount that is taken.Add the attorney fees the creditor paid.This should be listed on the garnishment.Add the interest that has been accrued.You should know how much this is by the garnishment.
Step 3: Make sure that there was a judgement.
In most cases, a consumer creditor must go to court to get a judgment.If you weren't notified of the case against you in which the original judgment was ordered, you may be able to get the entire judgment set aside.If you think the judgment should be set aside, consult an attorney.It will vary from case to case.There are some debts that can be executed without a judgment.Defaulted student loans, child support arrears, and income taxes are included.
Step 4: Look at the status of any bankruptcies.
Any attempts at collection outside of the bankruptcy process are protected by the Federal Bankruptcy Code.With the help of the bankruptcy court, you may be able to stop the garnishment.You should make a claim for exemption in the court that issued the garnishment.
Step 5: If the income is being garnished, make sure it's not protected.
Certain wages can't be garnished by most creditor.Child support, student loans, and taxes are exceptions.Public Aid and General Assistance Social Security and Supplemental Security Income are some of the types of income that are protected.
Step 6: Take your disposable income and divide it by it.
Most exemptions are based on disposable income.Before applying the exemption, you should determine your disposable income.Subtract any mandatory deductions, like child support, FICA or federal withholding taxes, from your gross wages to calculate your disposable income.
Step 7: The Florida income exemption is calculated.
Under Florida law, a creditor cannot take more than 25 percent of your disposable income or 30 times the federal minimum wage, whichever is less.If your disposable income is less than 30 times the federal minimum wage, your wages can't be garnished.50 percent of your wages can be used to pay child support.60 percent of your wages can be taken out to cover child support arrears for up to 12 weeks.There are special rules for the collection of taxes.Depending on your location, filing status, number of dependents, and potentially other items, the amount can be garnished.Your disposable income cannot be more than 15 percent.The total amount of your income must not be greater than 25 percent.If your employer pays 10 percent of your wages to satisfy a creditor's order, you won't have to pay any more than 15 percent.
Step 8: Determine if you qualify as a head of household.
If you give more than half of the support for a child or other dependent, you can keep your wages.If your wages are $750 per week or less, you can be eligible for the head of household exemption.If you provide more than half of a dependent's support, you still need to file an affidavit.The amount of your wages that exceeds $750 per week is what the creditor will be able to take from you.If you make $800 per week, the creditor will only be able to take $50 of your wages each week.The exemption is not automatic.You have to file an affidavit with the court after receiving notification of the creditor's request to take your wages.If the head of household exemption applies, a creditor can only take your wages if you agree to it in writing.The definition of a dependent in Florida is broad and includes almost anyone who you are giving half of their support to.This applies to both children and adult family members who are paying alimony to a former spouse.
Step 9: You should review your notice.
You must file your claim of exemption by the deadline in the paper you received.The creditor is required to give you a notice within five business days of when the writ of garnishment was issued.You have to file your claim of exemption within 20 days of receiving the notice.
Step 10: Look for forms.
Paper copies of exemption forms can be obtained from the clerk of court's office or your local legal aid office.You must fill out and submit an affidavit with the required form packet.Instructions for filling out the forms may be included in your form packet.Before you start filling out your forms, make sure you read the instructions carefully.
Step 11: You have to fill out your forms.
Information about the garnishment and the reasons your wages are exempt are required on the exemption forms.Your claim form and affidavit must be signed by a public official.Contact the clerk of court if you don't know how to find a notary.Some banks provide free notary services to their customers.Make two copies of your forms after you've signed them.One will be for your records and the other for the creditor.You have to file the originals with the court.
Step 12: The clerk's office has forms.
You have to file the exemption forms with the clerk of the court that issued the writ.You may be able to mail the forms to the clerk instead of taking the time to visit the courthouse.If you want to know when the forms are received, use certified mail with returned receipt.If you're close to the deadline to file your claim of exemption, you may want to take it yourself and make sure it's received in time.
Step 13: Have the debtor served.
You have to give the creditor legal notice that you've filed a claim of exemption.Your claim forms must be sent to the attorney's office if the creditor will be represented by an attorney.Your notice should include the attorney's name and address.Although you can get the sheriff's department or a private process serving company to serve your claim forms on the creditor, the easiest way to do this is to mail the copies to the attorney.
Step 14: Wait for a reply.
The creditor has a certain amount of time to respond to your claim.The creditor has 14 days to respond to your claim.The creditor has 8 days to respond to your claim.The court will cancel the garnishment if the creditor doesn't respond to your claim of exemption.The facts contained in your claim can be denied by the creditor.The court will hold a hearing if this happens.
Step 15: You should attend your hearing.
You have to appear before a judge to explain why your wages are exempt.The only issue at the hearing will be whether you are the head of your household, as you claimed in your forms.You won't be able to dispute the validity of the debt.The documents you bring with you to court will prove the statements you made in your affidavit.The judge will need to see these.If the judge finds that you qualify for a head of household exemption, the creditor can't take your wages.This doesn't mean that the debt goes away, but the creditor must pursue other methods of having the judgment enforced.