Features

• Wage garnishment is a debt collection mechanism often used by unsecured creditors, like credit card companies. Secured creditors typically resort to repossession and foreclosure to enforce unpaid debts because whatever line of credit they extended is backed by an asset (like a car or home) that the secured creditors retain an interest in until the debtor pays the loan in full. Unsecured creditors lend money solely on a borrower's promise to pay. If the borrower breaks that promise and stops paying, they will go after other assets, like wages.
  
  

Default

• When a borrower stops making payments, then the borrower is considered in default. It's considered default when no payment is made for a contractually stated period. Once a borrower goes into default, the creditor will begin collection efforts. This process starts with letters and telephone calls and could ultimately lead to the creditor suing the borrower so it can garnish the borrower's wages.
  
  

Judicial Process

• To garnish a debtor's wages in Florida, the creditor must first sue the debtor in a Florida court. Oftentimes, a debtor will not defend the lawsuit because she knows the money is due and cannot afford an attorney. When this happens, the creditor obtains a default judgment, which is the same as if the debtor had defended herself and lost. Once the creditor has a money judgment, it can request that the court order a garnishment writ.
  
  

Limitations

• If the debtor files tax returns as the "head of household," then 100 percent of the debtor's wages are exempt from garnishment. That means, in Florida, creditors cannot garnish the wages of heads of household. The only exception to this rule is when the head of household earns more than $500 a week and consents in writing to allow the creditor to garnish his wages. This is called voluntary wage garnishment. For people who file individually (and are not heads of household), Florida only exempts 75 percent of an individual debtor's income. That means, in Florida, a creditor can garnish up to 25 percent of an individual's wages (or the difference between his wages and 30 times the minimum wage if they make minimum wage).
  
  

Warning

• Contact an attorney licensed to practice in Florida to find out what rights and obligations, if any, you may have with regard to wage garnishment.