Legal Question in Credit and Debt Law in Maryland

Re: Garnishment

Disposable wages are the wages after taxes and other legally-mandated deductions. One thing you should do is make sure that enough is withheld for taxes - if you owe taxes each year rather than getting a refund, you should increase your withholding.

The court does not have discretion to lower the percent withheld. Bankruptcy may be the best option.

Re: Garnishment

In regard to a creditor's action to lien and garnish, disposable wages are those wages after all legal obligations are withdrawn from gross pay (i.e, taxes, alimony, child support, other priority liens, etc.). These wages apply to the percentage allowable for garnishment with certain offsets for cognizable claims (i.e., other creditor claims that apply against the percentage). You should ensure that all legal obligations are met from your pay.

You did not specify what the attorney is seeking collection for and I assume it is for an unsecured debt since a lien was not mentioned. Such debts can be negotiated, however, it may take the skill of an attorney to assert your position.

Depending on your financial situation, a bankruptcy may be a viable option, however, this should not be a decision that you enter into lightly. Consider that a bankruptcy, under Fair Credit law, can be reflected on you credit report for up to 10 years. If there are wages being earned against the debts for which bankruptcy is sought, a Chapter 13 is most likely to apply. With a Chapter 13, the bankruptcy trustee may be a part of your lives for many years to come. Other options exist, however, you will need to be able to come up with some way to attend to satisfaction with the judgment (whether in whole or in part). If this does occur, there are things that you need to do to protect your interests, not only with the satisfaction of the judgment itself but with attending to matters at court, to ensure that the a claim does not come back against you.