In Ohio, most creditors must sue you in court and win before they are able to gain a judgment against you and garnish your wages. Some exceptions to this include, child support arrears, unpaid income taxes, and student loans.
There is a limit to how much money can be garnished from your paycheck. The limit is meant to ensure you have enough money left to pay your living expenses, although anyone who has had their wages garnished might argue this is not the case. In some instances wage garnishments may take more than half of your paycheck.
In Ohio the legal limit for garnishment is the less of:
- 25% of your disposable earnings, or
- your disposable earnings less 30 times the current federal minimum wage ($7.25).
How Bankruptcy Stops Wage Garnishment
Wage garnishment will usually only stop if:
- Your debts are settled
- Bankruptcy’s automatic stay stops the action
In Ohio, in most instances with a Chapter 7 filing, you will have immediate protection against creditor’s collection efforts and wage garnishment on the date of filing and wages you earn after that date are once again yours. The automatic stay stops all forms of collection including:
- wage garnishment,
- collection phone calls and letters,
- foreclosure and repossession.
Both Ohio Chapter 13 and Chapter 7 bankruptcy can stop wage garnishment either permanently or, in the case of Chapter 13, until your payment plan period is over.
If your wages are being garnished and you find yourself financially strapped, contact Chris Wesner Law, a Troy, Ohio Bankruptcy Attorney today for a free consultation to find out if filing bankruptcy may be the right choice for you. Learn more at chriswesnerlaw.com.