Wage Garnishments in Charlotte
Working to Protect Your Finances
In most states, when a creditor obtains a judgment against you for money owed, a wage garnishment can be filed against you. This collection tool allows a judgment-creditor to receive an order from a court or a government agency that is sent to your employer. It requires your employer to withhold a certain amount of money from your paycheck and then send this money directly to your creditor.
North Carolina laws are very strict regarding wage garnishments. Our attorney at Schwilm Law Firm, PLLC can explain your rights in a garnishment action and help you seek bankruptcy protection to stop the creditor immediately from deducting money from your paycheck.
Understanding North Carolina Garnishment Laws & Limits
Under North Carolina law, an employer may be ordered to withhold wages from an employee and pay those wages to a creditor for taxes, student loans, child support, alimony or payment of ambulance services in certain North Carolina counties. Note that a creditor may obtain an order of garnishment from another state for other types of debts and enforce that order against a North Carolina employer.
A creditor can garnish 25 percent of your disposable income or the amount by which your disposable income exceeds 30 times the federal minimum wage, whichever is less. Your disposable earnings are those wages that are left after your employer has made the various deductions required by law. Examples of legally required deductions are:
- Federal, state and local taxes
- Social Security
- The employee portion of state unemployment compensation insurance
In North Carolina, if your disposable income is less than 30 times the federal minimum wage, your wages cannot be garnished at all.
Determining Exemptions for Wage Garnishment
Federal law limits the amount that a creditor can seize, or garnish, from your wages for repayment of debts. Generally speaking, ordinary creditors are prohibited from garnishing the following types of income:
- Social Security
Of course, certain exceptions do apply to this general rule. Our Charlotte bankruptcy attorney can explain the laws surrounding wage garnishments and how the exemptions apply to your situation.
How to Stop Wage Garnishments
Filing a Chapter 7 or Chapter 13 bankruptcy immediately stops wage garnishments and creditor harassment. To learn more about your legal options, contact Schwilm Law Firm, PLLC to discuss your individual circumstances with our debt relief attorney.
Contact a Charlotte Bankruptcy Lawyer
If you are interested in filing for bankruptcy protection to stop a wage garnishment in the Charlotte metropolitan area, contact Schwilm Law Firm, PLLC for your free initial consultation. Our telephone number is 704.567.5252. In addition, you can contact us online. We offer convenient parking at our Charlotte office.