• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

On Garnishments and Child Support

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

sudofdisk

Member
What is the name of your state?
Colorado

Long story short, I have a lot of creditors. I am working on paying them back but my paycheck only goes so far. I have set up payment plans with several of them and intend to pay them all back but several others are threatening garnishment.

First of all I am assuming the following, please correct me if I am wrong:

The maximum amount that can be garnished from my check is 25% of my take-home pay.

If the above is correct I have a question. I pay child support and on the documentation we got to choose whether I paid her directly or I had the state garnish my pay and pay her. We choose to have me pay her directly. My question is this:

If I have child support garnished, and if my assumption is true does this mean that the child support counts tword the 25% maximum?

Please let me know, I am not trying to avoid my debt, and it isnt enough to file bankruptcy, it is just that to lose 25% of my take home would cause me to be unable to make the voluntary payment plans I have in place.


Thanks in advance.
 


TinkerBelleLuvr

Senior Member
Have they started the garnishment yet? If not, it would behoove you to get the child support garnished from your check. THAT will normally come out first. When I have had to do garnishments and they find that there is a child support order out, the garnisher is generally SOL.
 

Ladynred

Senior Member
The maximum amount that can be garnished from my check is 25% of my take-home pay.
Yes.. and no. They can take up to 25% of your DISPOSABLE INCOME, which in this case means your net pay after mandatory taxes are taken out. Voluntary deductions like health insurance and other benefits are NOT considered at all.

If I have child support garnished, and if my assumption is true does this mean that the child support counts tword the 25% maximum?
Not exactly. Look up your state laws. In most states, you can have TOTAL garnishments of much more than 25% and the child support garnishment doesn't count towards the 25% Federal max.

I have set up payment plans with several of them and intend to pay them all back but several others are threatening garnishment.
Do these others already have JUDGMENTS against you ??? If not, then their threats of garnishment are ILLEGAL. They can NOT garnish your pay w/o first suing you and winning a judgment. The only exceptions to that are state and federal gov'ts and student loans.
 

Chien

Senior Member
I don’t normally post to add “I think so too”, but this is an instance where it may be helpful. LNR is right but, more importantly in this situation, I agree with Ginny J across the board. Turning your voluntary payment (which was commendable) into an involuntary payment may be a hard bullet to bite, but it is excellent strategy. (It’s also a “high five” to you. You address your familial obligations and can address those to third parties, if and as you’re able – they have little choice but to live with the reality, negotiate with you or step to the back of the line.)

I’m not endorsing dodging any legitimate obligation, but nobody else is either, apparently including you. I had this same conversation today with somebody similarly situated, but his obligation to an ex and 3 kids was reduced to a family court Order. He is immunized, because the pie can’t be split that many ways. He won’t avoid anything, and the third-party judgment will continue to earn interest. He understands that, has accepted the consequences and prioritized. (If your child is far from majority, it can be a significant factor is negotiating a creditor pay-off, because they must live with that timeframe.)

As far as Ginny’s comment about whether the garnishment has already started, in my experience, “changed circumstances” such as a mandatory, court-ordered deduction will always warrant re-visiting an exemption claim, but I’m not CO, and you might want to confirm that with local counsel.
 
Last edited:

sudofdisk

Member
Thank you all for your advice. After reading the above responses I will think I will have child support set up as a garnishment even if it does not protect me it is a payment that will be made every paycheck for 15 more years so it can't hurt to and it automates one of the interactions between myself and my wife.

I am still in doubt about how this will affect my ability to negotiate with other creditors. This all got started because my payroll department informed me that the state of Colorado was garnishing my wages because of an old tax bill. I have since resolved the issue and will not be garnished but I have other creditors threatening this (and yes to the above poster, they have judgements).

I found the following information online and would like to get some clarification:

http://fair-debt-collection.com/state-wage-garnishments.html#6

First of all I live and work in Colorado, but it is a California based company. Are the rules for California or Colorado the ones I need to pay attention to?

If it is Colorado they are as follows:

. Colorado Wage Garnishment

Gross earnings for the First Pay Period less deductions required by Law

Amounts based on Federal minimum hourly wage $5.15.

Weekly: $154.50 or 75% of Disposable Earnings

Bi-weekly: $309.00; or 75% of Disposable Earnings

Semi-monthly $334.75 or 75% of Disposable Earnings

Monthly: $669.50 or 75% of Disposable earnings


Are these maximums? Meaning does this mean (since I am paid semi-monthly) the most they can take out is 334.75 from each check? My child support is in excess of that so if I have that garnished am I in effect immune from garnishment?

Thank you all again for your time.
 

TinkerBelleLuvr

Senior Member
You are reading that correctly. I do payroll and deal with garnishments. When I dealt with the folks trying to do a garnishment, I let them know what the percentage of income is already coming out. In the one fellow's case, he had 21% coming out as child support. I could send 4% to the garnisher. I let them know what the dollar amount was and they said, forget it. It wasn't worth the $12.00 they were going to get.

You are REALLY better off getting that child support garnishment in place ASAP. The only ones who get a cut of the pie BEFORE child support is the government
 

Chien

Senior Member
I am still in doubt about how this will affect my ability to negotiate with other creditors.

Again, Ginny has explained it. It’s the “bird in the hand . . . .” theory.

A CO judgment is good for 20 years and is renewable. Some creditors may watch and renew, but chances are that most, and maybe all, won’t track for the 15 that you’re immunized. Some may watch for significant increases in earnings that would allow them a piece of the pie as well but, again, most won’t for that period of time.

However, if you should come into a windfall in 5-6 years and want to try settle a judgment, I would expect a creditor to be receptive. It’s gravy – “found money”. No more worries about tracking, watching and renewing.

As Ginny points out, there is a cost-benefit factor to consider. While mine is a commercial practice, I do the occasional wage garnishment in a business context. I did one once that still results in a $15.00 monthly payment. I just endorse it and send it to the creditor. It would cost more than its worth to process, deposit, and cut a new check. It’s a nuisance to all concerned. That’s why it affects your ability to negotiate, if you can find a way to make an offer.
 

sudofdisk

Member
I am still in doubt about how this will affect my ability to negotiate with other creditors.

Again, Ginny has explained it. It’s the “bird in the hand . . . .” theory.

A CO judgment is good for 20 years and is renewable. Some creditors may watch and renew, but chances are that most, and maybe all, won’t track for the 15 that you’re immunized. Some may watch for significant increases in earnings that would allow them a piece of the pie as well but, again, most won’t for that period of time.

However, if you should come into a windfall in 5-6 years and want to try settle a judgment, I would expect a creditor to be receptive. It’s gravy – “found money”. No more worries about tracking, watching and renewing.

As Ginny points out, there is a cost-benefit factor to consider. While mine is a commercial practice, I do the occasional wage garnishment in a business context. I did one once that still results in a $15.00 monthly payment. I just endorse it and send it to the creditor. It would cost more than its worth to process, deposit, and cut a new check. It’s a nuisance to all concerned. That’s why it affects your ability to negotiate, if you can find a way to make an offer.

Yep I get it now, it has been a long week. In reality I should (and will) pay off my debts. I want to clean up my credit and buy a house (among other things) but this will allow me to pay off the $9,000 debt that is at 21% (don't ask) first, then deal with the jerk who wants to garnish me over a $1000 debt at 3.5% when I am ready.

Thank you for for your help and thanks to Ginny and the others, you are all aces!
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
Top