Learn How to Stop Wage Garnishment in Utah
The Utah Court system allows for creditors to collect on unpaid debts through what is known as wage garnishment or a writ of garnishment. The amount of money that’s withdrawn from your check can be up to 25% of your wages and even up to 50% in some instances. If your wages are being garnished or if you’ve been threatened with garnishment actions, Start Fresh Utah can help. We are able to stop creditors from taking your hard earned wages. If you qualify, we’re also able to eliminate certain debts. Most people who become late on their debts do so because they can’t afford to pay their bills in the first place. To have the court system take an additional 25% of their earning can really be a huge financial setback, not to mention socially embarrassing.
How it Works
Creditors file a writ of garnishment with the Utah Courts, which allows them to have an employer hold a portion of wages to satisfy a debt. Once the creditor has obtained a court judgment, they can start the process of collecting on a debt. The employer is forced to hold a portion of earnings, then forward those earning on to the creditor. Some organizations don’t need to go through the courts system. Debts that involve student loans, taxes, and child support payments don’t need a court judgment to collect on a debt. With guaranteed federal student loans, the creditor will need to send a written 30 day notice to the defaulted borrower’s last known address. They can then start garnishing up to 15% of the borrower’s wages. This is known as an administrative garnishment. The power that Congress has granted the Department of Education and the damage that it can inflict on a person’s life seems reminiscent of the debtors’ prison era. Although Congress is currently being forced to act on student loan debts because of political pressure, they haven’t, as of this writing, provided any solutions. Some are speculating that Congress may pass legislation at the end of 2015 to deal with the student loan debt crisis. It may resemble something similar to the loan modification options available during the housing crisis.
What Creditors Must Prove in Utah to Get a Judgment
Creditors must provide the Utah courts with specific information in order to receive a court judgment. Following is the information that they will need to provide:
- They must prove that you are legally indebted to their company.
- They must provide a contract showing your agreement to pay.
- The payment of the claim cannot be secured by a lien upon a property in Utah.
- They must show that you have the creditor’s property.
What You Can Do to Stop Wage Garnishment
We all make financial mistakes, so once you’ve accepted that, you should put aside any feelings of guilt or remorse and fight these companies with tactics from their own game plan. One of the best ways to stop wage garnishment is to file for bankruptcy. Bankruptcy not only stop wage garnishment, it can also eliminate certain debts. Additionally, filing for bankruptcy stops creditors from harassing you or your employer. For individuals, there are two different options to file for bankruptcy, either a Chapter 7 Bankruptcy or a Chapter 13 bankruptcy. With a Chapter 7 bankruptcy the debtor, the person filing for the bankruptcy, can completely eliminate certain types of debts like credit card debts and hospital debts. Under a Chapter 7, the courts can reduce the overall monthly payments into one low manageable payment, while eliminating the unsecured debts. A Chapter 13 bankruptcy applies to people who make considerably more than someone filing for Chapter 7. They are still eligible to have their debt payments reduced and consolidated into one low manageable payment, but they aren’t eligible for debt elimination. Secured debts are debts with some type of asset pledged as a security for the debt like cars and homes. These can’t be eliminated.
Utah State Wage Garnishment Protections
Although Utah state has established what they consider protections against excessive wage garnishment. These protections are ineffective, and they reflect the power of corporate lobbyists rather than concerned governance. According to 15 U.S.C. §1673, Utah Code 70C-7-103, and Rule 64D of the Utah Rules of Civil Procedure, creditors can collect up to 25% of a person’s wages per week. Here’s where they feel that they’re contributing to debt relief. They won’t allow creditors to collect, on a weekly basis, over 30 times the minimum wage. The Federal minimum wage is currently $7.25, so that means that they prohibit weekly garnishments exceeding $217.50 or $870 a month. This is akin to being given the liberty to choose between which type of execution you would prefer. None of the options are preferable. Here’s another example of why you need to fight for your rights as a consumer. Utah state has made it possible for a creditor to garnish up to 25% of your income after all of the Utah taxes have been deducted first. They’re not allowing for the garnishment first, followed by state taxes. This option would have decreased their revenues, and we all know that it would really be unfair for the state government to try and live off of less revenues. If you are experiencing creditor harassment or wage garnishment, let Start Fresh Utah help. We can provide you with debt relief and help you to get a fresh start in life. Just give us five minutes of your time.