Legal Question in Credit and Debt Law in Utah

Garnishment of Wages While On Short Term Disability...

Are my short term medical disability payments exempt under Utah Code 78-23-5, and if so can I get the garnished funds back? I was just approved for disability by Liberty Mutual, after waiting for two months, which gave me three pay period direct deposits. However each one has a 25% garnishment which I was not made aware of beforehand. This is a loss of over $750 that I desperately need for living and medical expenses.

A little background...

Before I went out on short term medical disability from my employer I was following monthly payment arrangements I had established with a creditor, (unsecured loan), on the 25th of each month. I advised the creditor when I went out on disability on 7/10/12 that I would not be able to make the payments until my first disability payment came through. It was agreed by myself and the company that I would make July and August's payments once I had the funds. On 8/14/12 I was served paperwork from the court that I was to appear on 10/2/12 as the company was suing for garnishment. I went to the company's office and was told that I did not have to appear in court and that I could not be garnished from disability payments as long as my payments resumed. I was approved for short term disability on 8/20/12 and made up the payments that had been missed, however after the payment was made I was told that the company had issued a garnishment for 25% of my income and there was nothing they would do to reverse it. I have tried to have my employer stop the garnishment as it I am only receiving 60% of my income on disability, but they can do nothing without a release from the company. The company, of course, will do nothing to stop the garnishment order.

Thanks,

Kim

1 Answer from Attorneys

Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in Utah

Looking for something else?