How Long Does It Take to Get Garnished Wages Back? [insights September 2024]

Wage garnishment is a stressful financial burden that many individuals face when creditors collect debt through court orders. The process of recovering garnished wages can seem overwhelming, especially when you are unsure about the timeline. So, how long does it take to get garnished wages back? This blog aims to explore this question in-depth, covering the factors that influence the recovery timeline, steps involved in reclaiming garnished wages, and strategies you can use to expedite the process. We’ll also look at real-life case studies to illustrate how long it takes to get garnished wages back in various scenarios.

Understanding Wage Garnishment

Wage garnishment occurs when a creditor receives a court order to deduct a portion of an employee’s wages directly from their paycheck to settle a debt. This legal action usually follows a lawsuit where the creditor obtains a judgment against the debtor. Here’s a breakdown of how wage garnishment typically works:

1. Filing of a Lawsuit: The creditor sues the debtor to recover the unpaid debt.
2. Court Judgment: If the creditor wins, the court issues a garnishment order.
3. Employer Notification: The employer is legally obligated to withhold a specific portion of the debtor’s paycheck.

The amount that can be garnished varies by state, but federal law limits garnishment to a maximum of 25% of disposable earnings. Knowing how the process works helps set the stage for understanding how long it takes to recover garnished wages.

How Long Does It Take to Get Garnished Wages Back?

The time it takes to recover garnished wages depends on several factors, including the type of garnishment, whether bankruptcy is involved, and specific state laws. In this section, we’ll dive into the timelines based on different scenarios:

1. Recovery After Filing Bankruptcy

When you file for bankruptcy, an automatic stay goes into effect immediately, stopping wage garnishment. If you file under Chapter 7 or Chapter 13, you may also be eligible to recover wages garnished within 90 days prior to filing, provided the total exceeds $600. Once bankruptcy is filed, the court will notify your creditors, and the garnishment should cease. The recovery of previously garnished wages can take anywhere from a few weeks to several months, depending on how quickly creditors respond to your request.

2. Requesting Refunds

Once you file for bankruptcy, you’ll need to notify your creditors and formally request the return of any garnished wages. The timeline for this process varies. If the creditor cooperates, you could get your wages back within weeks. If the creditor disputes your claim, the process could extend into months, as a court hearing may be required.

3. Court Proceedings

In cases where creditors refuse to return the garnished wages, you may need to initiate an adversary proceeding in bankruptcy court. This can significantly extend the recovery timeline, as court dates, legal motions, and creditor negotiations can take several months.

Case Study: Recovering Garnished Wages After Filing for Chapter 7 Bankruptcy

Scenario: Sarah had $1,200 garnished from her wages over two months to pay off medical debt. After consulting a lawyer, she decided to file for Chapter 7 bankruptcy to halt the garnishment.

Filing for Bankruptcy: As soon as Sarah filed for bankruptcy, the automatic stay stopped the garnishment.

Requesting Refund: She notified the creditor and requested a refund of the $1,200 garnished within 90 days prior to her filing.

Outcome: The creditor responded quickly, and Sarah received her refund within eight weeks.

This case shows that while results may vary, filing for bankruptcy can expedite the recovery of garnished wages.

Factors That Affect the Time to Recover Garnished Wages

Several factors impact how long it takes to get garnished wages back:

• Type of Debt: Some debts, like child support and back taxes, may follow different recovery rules, and you may not be able to get garnished wages back for those debts.
• State Laws: Different states have different garnishment laws, which can influence the timeline for wage recovery.
• Creditor’s Willingness: The speed at which the creditor complies with the request can either shorten or extend the recovery time.
• Legal Assistance: Hiring a lawyer can expedite the process, as they can handle the legal aspects more efficiently.

Steps to Recover Garnished Wages

1. File for Bankruptcy: If applicable, file for Chapter 7 or Chapter 13 bankruptcy to trigger an automatic stay.
2. Notify Creditors: Formally request the return of garnished wages through written communication.
3. File a Legal Motion: If creditors don’t voluntarily return the wages, you may need to file an adversary proceeding in court.
4. Hire a Lawyer: Legal counsel can guide you through the process and increase your chances of recovering the funds faster.

Alternatives to Bankruptcy for Stopping Garnishment

Filing for bankruptcy isn’t the only way to stop wage garnishment. Here are a few other methods that may help:

• Debt Settlement: You can negotiate with your creditors to reduce the debt or set up a payment plan, thereby avoiding further garnishment.
• Legal Motion to Quash: If the garnishment order was improperly obtained or issued, you could file a motion to quash the order.
• State-Specific Programs: Some states offer hardship exemptions that allow you to stop garnishment if it leaves you unable to meet basic living expenses.

Wrapping It All Up

To conclude, how long it takes to get garnished wages back varies significantly depending on factors like bankruptcy, state laws, and creditor cooperation. While some individuals can recover their funds within weeks, others may face a drawn-out process lasting several months.

Key Takeaways:

• Filing for bankruptcy can trigger an automatic stay and allow you to recover garnished wages.
• Recovery timelines can vary from a few weeks to several months, depending on individual circumstances.
• Legal representation and proactive communication with creditors can help speed up the process.

See Also-Should I File For Bankruptcy or Try Debt Relief?

FAQs

What is a garnishment refund? A garnishment refund is when a creditor returns wages taken after filing for bankruptcy or if garnishment is challenged successfully.

How to recover garnished money? You can recover garnished money by filing for bankruptcy, notifying creditors, and requesting a refund of garnished wages.

Can a garnishment be stopped once started? Yes, filing for bankruptcy or filing a legal motion can stop garnishment.

How long does it take to reverse a bank levy? Reversing a bank levy usually takes several weeks, but it can take longer if court proceedings are necessary.