How To Stop Wage Garnishment In Pennsylvania

Having your wages garnished in Pennsylvania can leave you scrambling to make ends meet and unsure of your legal options. You might be asking yourself, how can I stop wage garnishment in Pennsylvania before it goes any further?

To stop a wage garnishment in Pennsylvania, you can pay off the debt, negotiate a repayment plan with the creditor, file a claim of exemption with the court, or file for bankruptcy to trigger an automatic stay that halts garnishment.

Consulting a bankruptcy attorney can provide strategic advice on stopping wage garnishment, especially in complex cases involving recoverable funds from past garnishments.

With decades of experience guiding Pennsylvanians through debt relief and legal protection, I’ve helped many clients regain control of their finances and stop wage garnishments before they spiral out of control.

In this article, I’ll walk you through each available option, what to expect from the process, and how to choose the best path forward for your financial recovery.

Understanding Pennsylvania Wage Garnishment Laws

Pennsylvania wage garnishment laws are governed by both state and federal laws. The Pennsylvania Consolidated Statutes under section 42 PA Cons Stat § 8127 outline the wage garnishment laws, while additional provisions are found within the federal laws 15 U.S.C. § 1673. These laws protect employees from excessive wage deductions and provide guidelines for creditors to follow when attempting to garnish wages.

In Pennsylvania, creditors must obtain a court order before they can garnish your wages, except in cases involving child or spousal support, federal student loans, and certain taxes. The state laws work in conjunction with federal laws to ensure that the amount garnished from your wages does not exceed legal limits, thereby protecting your financial stability.

Types of Debt and Garnishment Limits

In Pennsylvania, wage garnishment is permitted for certain types of debt, including child or spousal support, back rent on a residential lease, and student loans. Under federal law, wage garnishment is capped at 25% of your disposable income or the amount by which your disposable income exceeds 30 times the federal minimum wage, whichever is lower.Pennsylvania law follows these federal guidelines but has specific provisions for different types of debt.

For instance, up to 50% of your disposable earnings can be garnished for child or spousal support if you are supporting another spouse or child, and up to 60% if you are not. For federal student loans, up to 15% of your disposable earnings can be garnished. These limits ensure that you retain enough income to cover your basic living expenses while repaying your debts.

Stopping a Wage Garnishment Immediately

Taking immediate action is crucial when dealing with a wage garnishment order under Pennsylvania’s wage garnishment laws. Ignoring it could lead to further financial complications.

Here are four effective ways to stop wage garnishment right away:

• Negotiate a repayment plan with the creditor or debt collector

• Contest the wage garnishment in court, often by filing a claim of exemption

• File for bankruptcy

• Seek assistance from a nonprofit credit counseling service

Let’s delve into each option in detail.

1. Contact the Debt Collector or Creditor To Negotiate a Payment Plan

If your debt has been sold to a collection agency, you might have a better chance of negotiating a payment plan or reaching a debt settlement. This is because debt collectors purchase debts for a fraction of their original value. Successfully arranging a payment plan can prevent a garnishment before it even begins! Typically, settling your debt requires a lump-sum payment.

Failing to keep up with credit card payments can lead to wage garnishment, as creditors may obtain a court judgment to garnish wages.

If your debt remains with the original lender or creditor and they have already secured a wage garnishment court order, negotiating a payment plan might be challenging, but it’s still worth pursuing. Reach out to the creditor, explain your financial situation, and ask if there’s a possibility of establishing an affordable payment plan.

If your monthly income and essential living expenses prevent you from proposing a payment plan that matches or exceeds the garnishment order, the creditor may decline the offer. However, this doesn’t mean you’re out of options! You can still explore the other three methods to swiftly stop a wage garnishment.

2. Challenge the Wage Garnishment in Court

Upon receiving a wage garnishment order notice, you’ll also get details on how to contest the garnishment in court. To challenge a wage garnishment, you must file the necessary documents with the court clerk that issued the garnishment order.

Court-ordered restitution is one of the types of debts that can lead to wage garnishment.

If you decide to proceed, act swiftly. Depending on your state, you might have as little as five business days to file a claim of exemption or similar paperwork. Once this period expires, your employer (or their payroll service) will have no option but to garnish your wages.

While contesting the garnishment might buy you some time, it could also potentially reduce or halt the garnishment altogether. You have grounds to challenge a garnishment if certain portions of your income are exempt from garnishment. Exempt income may include Social Security, unemployment, and retirement benefits. Additionally, you can dispute a garnishment if another creditor is already garnishing your income.

3. Stop the Wage Garnishment by Filing for Bankruptcy

Filing for bankruptcy is a swift way to stop wage garnishment. How does it work? As soon as you file your bankruptcy petition, you benefit from the protection of an automatic stay. This legal provision prevents creditors, including those with wage garnishment orders, from pursuing your debts while your bankruptcy case is active. Understanding the bankruptcy process is crucial, as it can provide immediate protection against creditors and garnishment orders.

While filing for bankruptcy may not be suitable for everyone, it is an option worth considering if you are overwhelmed by credit card debt, medical bills, or find yourself unable to manage financially. Chapter 7 bankruptcy, in particular, can offer you some financial relief and a fresh start by discharging your debts.

It’s crucial to understand that although the automatic stay halts most collection efforts, it does not apply to the collection of child support and alimony. Garnishment orders for these obligations remain in effect despite the bankruptcy filing.

4. Get Help From a Nonprofit 

If you’re struggling to keep up with your payments, you might want to consider scheduling a free credit counseling session with a nonprofit organization in your area. A credit counselor will assess your financial situation and provide guidance on dealing with debt collectors. Credit counseling services can also help manage debt collection efforts. They may even assist you in creating a repayment plan to propose to the bank pursuing legal action against you.

Protecting Your Wages from Garnishment

If you receive a notice of a wage garnishment order, there are ways to protect or “exempt” some or all of your wages by filing an exemption claim with the court or raising an objection. The procedures for contesting a wage garnishment vary based on the type of debt and the state laws involved.

To file an exemption claim, you will need to provide evidence that the garnishment is causing undue hardship or that your income is exempt under state or federal law. Additionally, you can negotiate a debt settlement with your creditor to stop the garnishment. Seeking the help of a local debt relief attorney can also be beneficial, as they can guide you through the legal process and help you explore all available options to stop the wage garnishment.

Job Protection from Wage Garnishment

Federal law provides some protection for employees who have a wage garnishment order. An employer cannot discharge an employee if they have one wage garnishment order. However, federal law will not protect an employee if they have more than one wage garnishment order. Pennsylvania law follows federal law for restrictions on job termination due to wage garnishments.

This means that if you have a single wage garnishment order, your job is protected, and your employer cannot legally fire you because of it. However, if you have multiple garnishment orders, this protection no longer applies, and your employer may have the right to terminate your employment. Understanding these protections can help you navigate your financial and employment situation more effectively.

How Does Wage Garnishment Work? 

Wage garnishment is a method used for debt collection. When you have unpaid debts with a creditor or debt collector, they can take legal action by suing you to recover the debt. If they win, they obtain a court order, known as a judgment, enabling them to deduct money directly from your paycheck to reduce your outstanding balance. The amount that can be garnished is often calculated based on your gross wages, with certain states limiting the percentage that can be deducted.

Although having your wages garnished can be overwhelming, you do have rights and options. Wage garnishment laws impose limits on the amount that can be deducted from each paycheck. These limits are typically based on your net wages, which account for deductions like taxes and health insurance. Additionally, you are protected by specific consumer rights regarding debt collection and the actions of debt collectors.

Federal law permits the garnishment of your wages and Social Security benefits for unpaid federal taxes and student loan debt without the need for a lawsuit or judgment. This means both the U.S. Department of Education and the IRS can garnish your wages directly. Income exemptions can also affect wage garnishment, especially for self-employed individuals, as state laws may not fully protect their income under the same exemptions as wages earned by employees.

How Much of My Wages Can Be Garnished?

Creditors are restricted in the garnishment amount they can take from your wages. According to federal limits established by the Consumer Credit Protection Act (CCPA), the garnishment amount cannot exceed 25% of your disposable income or the difference between your take-home pay and 30 times the federal minimum wage (currently $7.25/hour), whichever is less.

It’s crucial to understand that wage garnishment orders do not permit creditors or collection agencies to withdraw funds directly from your bank account; they are only entitled to a portion of your paychecks. State laws and exemptions dictate the procedures creditors must follow for other collection actions and set limits on the amounts they can seize.