Wage garnishment can be a stressful and financially challenging experience for Maryland residents. If you’re facing wage garnishment, there are several effective methods to stop it: negotiating with creditors, filing for exemption relief, or declaring bankruptcy, each offering unique benefits depending on your situation. This comprehensive guide will help you understand your rights and explore options to stop wage garnishment, allowing you to regain control of your finances.
Understanding Wage Garnishment in Maryland
Wage garnishment is a legal procedure where a portion of your earnings is withheld by your employer and sent directly to a creditor to satisfy a debt. In Maryland, specific laws govern this process, protecting both creditors and debtors.
Key Maryland Wage Garnishment Facts
- Maryland follows federal guidelines but has some state-specific protections.
- Creditors must obtain a court judgment before garnishing wages (except for certain debts like taxes or student loans).
- The maximum amount that can be garnished is limited by state and federal laws.
Who Can Garnish Wages in Maryland?
Creditors
Creditors must follow a specific legal process to garnish wages in Maryland:
- File a lawsuit against the debtor
- Obtain a court judgment
- File a Request for Writ of Garnishment with the court
- Serve the writ to the debtor’s employer
Government Agencies
Certain government agencies can garnish wages without a court judgment:
- Internal Revenue Service (IRS) for unpaid taxes
- U.S. Department of Education for federal student loans
- Maryland Comptroller for state taxes
The Legal Process of Wage Garnishment
Filing for Judgments
Before garnishment can begin, creditors must:
- File a lawsuit in the appropriate Maryland court
- Prove the debt is valid and owed by the defendant
- Obtain a judgment from the court
Writs of Garnishment
Once a judgment is obtained, the creditor can request a Writ of Garnishment from the court. This document instructs your employer to withhold a portion of your wages.
Your Rights During Wage Garnishment
Limits on Garnishment Amount
Maryland law protects a significant portion of your wages from garnishment:
| Type of Income | Maximum Garnishment |
|---|---|
| Disposable earnings | Lesser of 25% or amount exceeding 30 times federal minimum wage |
| Child support | Up to 65% of disposable earnings |
| Federal student loans | 15% of disposable earnings |
Notice Requirements
You must receive proper notice before garnishment begins:
- Creditors must notify you of the judgment and intent to garnish
- Your employer must provide you with a copy of the Writ of Garnishment
- You have the right to contest the garnishment or claim exemptions
Time Limits on Debt Collection in Maryland
In Maryland, creditors have a limited time to enforce debts:
- Generally, creditors have 3 years from the date the debt becomes due to file a lawsuit.
- For credit card debts, the 3-year period begins on the date the debt is “incurred”.
- After this period, the debt may become uncollectible through legal means.
Options to Stop Wage Garnishment
Negotiate with Creditors
Proactively negotiating with creditors can sometimes prevent or stop garnishment:
- Offer a lump-sum settlement
- Propose a reasonable payment plan
- Consider working with a credit counseling agency
File for Exemptions
To claim an exemption:
- File a “Motion to Release Garnishment” with the court
- Attend a hearing to present your case
- If approved, the court will issue an order to stop or reduce the garnishment
Declare Bankruptcy
Filing for bankruptcy can provide immediate relief from wage garnishment:
Chapter 7 Bankruptcy
- Liquidates non-exempt assets to pay creditors
- Triggers an automatic stay, stopping all collection activities
- Can discharge many types of unsecured debts
Chapter 13 Bankruptcy
- Allows you to reorganize debts into a 3-5 year repayment plan
- Stops wage garnishment and may allow you to catch up on missed payments
How to Write a Letter to Stop Wage Garnishment
When objecting to a garnishment in writing, include the following information:
- Case number and caption (e.g., “XYZ Bank vs. John Doe”)
- Date of your objection
- Your name and current contact information
- Reasons (or “grounds”) for your objection
- Your signature
Responding to a Garnishment Letter
If you’re an employer who has received a garnishment notice:
- Complete and return the form (usually a verification of employment) by the requested date.
- Provide accurate information about your business and the employee.
- Begin withholding wages as instructed, unless you receive a court order to stop.
Bank Garnishment Procedures in Maryland
In addition to wage garnishment, creditors may attempt to garnish your bank account:
- Banks must freeze funds for 30 days before releasing them to creditors
- Certain funds are protected (e.g., Social Security benefits, veterans’ benefits)
- You can file a “Motion to Release Property from Levy” to claim exemptions
Seeking Legal Assistance
Consulting with an experienced debt relief attorney can help you understand your rights and explore the best options for your situation. DebtBusters offers free personalized debt relief consultations and can match you with top-performing local legal professionals to help stop wage garnishment.
Monitoring Your Situation
Keep Track of Notices
- Maintain a file of all debt-related communications
- Respond promptly to any legal notices or summons
- Keep copies of all court documents and correspondence
Monitor Your Paychecks
Regularly review your paychecks to ensure:
- Garnishments are accurate and within legal limits
- You’re receiving proper credit for payments made
- Any changes in garnishment amount are justified
Taking Action to Protect Your Income
Don’t wait until garnishment begins to take action. If you’re struggling with debt, consider these proactive steps:
- Create a budget to manage your finances
- Explore debt consolidation options
- Seek credit counseling from a reputable agency
- Contact DebtBusters for a free consultation on debt relief options
Frequently Asked Questions
Can my wages be garnished without notice in Maryland?
No, you must receive proper notice before garnishment begins, except in rare cases involving federal agencies.
Is there a way around wage garnishment?
Yes, you can file a Claim of Exemption any time after wage garnishment has started. Acting quickly can stop it before it begins. Remember, your employer cannot fire you for a single wage garnishment.
How can I stop garnishment after a judgment?
You can stop garnishment after a judgment by:
- Challenging the wage garnishment order in court
- Filing a Claim of Exemption
- Negotiating a payment plan with the creditor
What types of income are exempt from garnishment in Maryland?
Certain types of income are protected, including Social Security benefits, veterans’ benefits, and unemployment compensation.
What is Rule 3-645 in Maryland?
Rule 3-645 governs the garnishment of any property of the judgment debtor, other than wages (which are subject to Rule 3-646) and partnership interests. It outlines the legal process for garnishing property held by third parties to satisfy a money judgment.
How long can wage garnishment last in Maryland?
Garnishment can continue until the debt is paid in full or you take action to stop it through legal means.
Can I be fired for having my wages garnished in Maryland?
No, federal law prohibits employers from firing an employee due to a single wage garnishment.
Remember, wage garnishment doesn’t have to be the end of your financial story. With the right information and assistance, you can take steps to stop wage garnishment in Maryland and work towards a more stable financial future. Contact DebtBusters today for a free consultation and start your journey to financial freedom.
