Legal Question in Credit and Debt Law in Virginia
garnishment
If wages are being garnished then the person loses the job ''laid off or contract runs out'' , does he/she legally have to inform the creditors/court of that job-loss ? if yes, how soon?
1 Answer from Attorneys
Re: garnishment
No.... They will just stop getting money from the employer.
The employer does have an obligation to file an answer with the Court, including if there is no money being withheld because the person does not work there.
But if a garnishment STARTS, and then the employment ends before the garnishment period is finished, the employer will simply report the total amount withheld at the end of the period (for the final court date).
There is no need to inform them DURING this period, only the total amount obtained while the person WAS employed.
The Employer just reports the total ammount collected, that is all.
HOWEVER... IT is ILLEGAL for an employer to fire you BECAUSE you have received a wage garnishment! They cannot let you go because you are being garnished!
And the debtor does not have to say anything.
However, if the creditor subpoenas you to answer "debtor's interrogatories" then you will have to answer those questions.