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TJ, Esq.
TJ, Esq., Attorney
Category: Bankruptcy Law
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Experience:  JD, MBA
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bankruptcy law: i want to settle my debt with creditors however

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bankruptcy law: i want to settle my debt with creditors however i might be going back to work by then. if im working can the creditor garnish my wages with the employer and if so can i declare hardship some how?
Hello and thank you for allowing me the opportunity to assist you.

Yes, unfortunately California allows creditors to garnish wages. However, the creditor must first have a judgment against the person, which means the creditor must first sue. After suing and winning, the creditor can garnish up to 25% of the person's wages.

I'm sorry to say that the law does not provide for relief from wage garnishment by claiming that the garnishment creates a hardship. If you cannot afford the wage garnishment, then the answer is usually bankruptcy since the debt would be discharged and there would be no garnishments.

Does that answer your question? Let me know if you need clarification, and please remember to rate me positively so that I receive credit for my efforts.

Thank you and good luck!
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Customer: replied 3 years ago.

i was a resident of ny at the time. is there relief from wage garnishment due to hardship there? and i have creditors so do they each get 25%. and i have to pay student loans also so there is hardship.

Hi again.

NY does have more favorable wage garnishment laws since creditors may only garnish up to 10% of wages rather than 25%. However, the state where you live now controls the wage garnishment. So, even though the judgment may have been granted to the creditor in NY, if you live in CA, then CA law determines the extent to which your wages can be garnished.

As for the fact that you have multiple creditors, only 25% may be garnished at any given time. Generally, it's a first come first served situation. For example, if you have 3 creditors, and creditor 1 files for the garnishment first, then 25% will be deducted for creditor 1, and creditors 2 and 3 will get nothing until creditor 1's garnishment has ended.
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