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Dwayne B.
Dwayne B., Attorney
Category: Legal
Satisfied Customers: 26768
Experience:  Began practicing law in 1992
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My mother owns 100% of a company that I manage. A writ of

Customer Question

My mother owns 100% of a company that I manage. A writ of garnishment was served on the client that this company services in my name for a judgment as a result of my divorce. The client has held all monies due even though the company is not named in the writ. What can she do to compel the client to pay.
Submitted: 10 months ago.
Category: Legal
Expert:  Dwayne B. replied 10 months ago.

Dwayne B. :

Hello, and thank you for contacting Just Answer. I am an expert here and I look forward to assisting you today.

Dwayne B. :

Along with the writ of garnishment should have been a form for filing an Answer to the writ.

Dwayne B. :

In that answer she can deny that you work for the company or own any interest in the company.

Dwayne B. :

At that point the court should dismiss the writ.

Dwayne B. :

The MD courts have a document addressing garnishments at http://www.mdb.uscourts.gov/sites/default/files/Maryland%20Rules%20Garnishment%20of%20Wages.pdf

Dwayne B. :

She may want to take a look at that before filing the answer.

Customer :

I received the writ of garnishment from my ex wife's atty. There is a form to answer for me but the problem is that my mother's company, which I have no ownership in or receive any payments from, has a client that was served with this writ and has refused to pay. This can't be legal???

Dwayne B. :

She can still assert the same defense since it is her company that would be considered the "debtor" under this scenario.

Dwayne B. :

It is a breach of contract for the client to withhold monies due the company if the company is not named at all.

Customer :

so she should provide an answer to the court regarding the writ of garnishment. And I should do the same?

Dwayne B. :

SHe can certainly pursue a breach of action contract against the client.

Dwayne B. :

Yes, she would want to file an answer in the case alleging that the garnishment has affected her tven though she is not a party.

Dwayne B. :

Is it a corporation or a company.

Dwayne B. :

?

Customer :

Well her client is advising that since I am her son, that her company is liable even though it is not specifically named in the writ. She has an LLC

Dwayne B. :

If it is an LLC then she will have to have a lawyer file the answer for her.

Dwayne B. :

The client doesn't know what they are talking about.

Dwayne B. :

Her lawyer can also ask that the attorney's fees be taxed against the client or the other side for the wrongful withholding of the company funds.

Customer :

oh ok, so she should have an attorney to file the answer, but I can file my answer without an attorney? The client says that they have to garnish her wages and send those monies to the creditor as a result of advice from their legal department.

Dwayne B. :

Yes, you can file your answer without an attorney.

Customer :

it sounds as though we should both retain an attorney in this matter.

Dwayne B. :

The client either is lying or misrepresented what their legal department said. There is no rationale under the law where you withhold funds for an LLC if the LLC is not named in the writ.

Customer :

is there a law that I can refer to that states this, or is it contained in the link you sent earlier

Dwayne B. :

Neither. This is one of those situations where there is no law because it is a negative. There is no law stating that they can withhold the money from an LLC because someone who works there has a writ of garnishment.

Customer :

oh ok, I thought so but when I spoke with the client on her behalf to explain that the company was not mentioned in the writ, they advised that they would be in contempt of court if they didn't garnish the entire wages owed to her company. Didn't seem proper.

Dwayne B. :

It isn't proper. There is no law that says anything close to what they are saying. They would be in contempt of court if they didn't withhold monies due to you but not that are due to a separate legal entity.

Customer :

ok, well the information you have provided has been very helpful. I will tell her to consult a local attorney to protect her interests and I will file an answer stating that I have no ownership interest in her company or receive funds from her company. Hopefully this will encourage them to release her funds. Thank you for your help.

Dwayne B. :

You're very welcome. She shouldn't have any problem getting the funds released.

Dwayne B., Attorney
Category: Legal
Satisfied Customers: 26768
Experience: Began practicing law in 1992
Dwayne B. and 14 other Legal Specialists are ready to help you
Expert:  Dwayne B. replied 10 months ago.
Thank you very much for the Positive Rating. Please come back and visit us if you have any new questions and feel free to ask for me by placing “FOR DWAYNE B” in the subject line or as the first words of your question and I will pick up as soon as I see it.

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