Legal Question in Credit and Debt Law in California

Re: wage garishment

If you have your paycheck automatically deposited in a credit union account and you signed a linkage agreement, they can remove money from your account. But as far as attaching your check directly from your employer, the answer is "no" unless they get a judgment against you. What are the alternatives? Pay what you owe or negotiate a discount or payment plan.

Re: wage garishment

A credit union, like any other creditor, must first file a lawsuit against you and obtain a judgment before being able to garnish wages. If you are unable to negotiate a settlement or a payment plan, the lawsuit would eventually go to trial or resolve in some other manner.

Once the credit union obtains a judgment, it would be able to initiate a wage garnishment. They could not garnish more than 25% of your net pay. You can file for bankruptcy, try again to negotiate a payment plan for file a Claim of Exemption. If you file a Claim of Exemption, the garnishment will either be release for the creditor will object and the Court would schedule a hearing to determine if the garnishment should be reduced or stopped.