My wages are being garnished, because I defaulted on a loan however I have been paying on this loan since May of 2012.

Asked over 2 years ago - Torrance, CA

When I called the finance company in May I provided my employment information and worked out a payment amount. I began to make payments of $200.00 immediately and I have not missed one since. I receive a letter from my place of employment today, 7 months later, informing me that 25% of my wages are to be garnished until the amount of $10780.97 has been paid. Much more than the $6009.00 of the judgement I also had no clue about. It seems that my payments have not been applied. I am a single parent in a one bedroom apt. I will not be able to afford my rent unless I am able to stop this. I have proof of my payments with the bank. Is it possible for the garnishment to be reversed since I have been making payments? Is it possible to freeze this garnishment if I have to go to court?

Attorney answers (5)

  1. 5

    Lawyers agree

    Answered . For them to be garnishing they would have had to have got a judgment. If you had an agreement in place then they should have not had sued you. Something is not adding up. You very well may have a good case. Call us for free evaluation and consult. We have an LA office

    Kazerouni Law Group, APC is a law firm concentrating its efforts in the area of consumer law, the Fair Debt... more
  2. 3

    Lawyers agree

    Answered . You need to file a claim of exemption and a financial declaration with the levying officer to reduce the garnishment amount. Those forms should have been given to your employer, to give to you, at the time of the garnishment. If not the forms are available from the CA Courts website, below.

    If you believe the creditor has violated the terms of any payment arrangement or not appropriately credited your payments, you should seek the services of a local consumer rights attorney.

    For help regarding the pending garnishment see this the CA Courts website:

    I am licensed in California only and my answers on Avvo assume California law. Answers provided by me are for... more
  3. 3

    Lawyers agree

    Answered . Filing the claim of exemption is a good idea, but it won't necessarily provide immediate relief. If the creditor opposes the claim of exemption, the 25% will be deducted from your paycheck until the judge rules on what amount should be taken from your check. You might eventually get back some or even all of the money that had been taken out, but that could take several weeks or more.

    Also, any claim that you may have for breach of a settlement or claims for unfair debt collection practices could take months or years.

    Ultimately, bankruptcy may be your best and quickest option. You should contact a local bankruptcy attorney right away.

    First, the firm is a debt relief agency according to the U.S. Bankruptcy Code. We help people file for bankruptcy.... more
  4. 3

    Lawyers agree

    Answered . You need to consult an attorney who sues debt collectors who engage in abusive debt collection practices. If you can show that you have been making payments pursuant to an agreement, the debt collector may be in violation of the Fair Debt Collection Practices Act and may owe you a statutory penalty, any actual damages, damages for mental distress, and attorney's fees.

    Richard Scott Lysle

  5. 4

    Lawyers agree

    Answered . A debtor court will freeze the payments and put you on a payment plan. A chapter 7 might end the nightmare for you. Go and talk to a bankruptcy attorney.

    There are many factors that can affect how best to handle this matter and the best advise is usually to hire an... more

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