After a judgment is entered against you in a court of law, creditors gain legal rights to collect the debt you owe, including the possibility of wage garnishment. Here’s what typically happens after a judgment is granted and how wage garnishment works:

1. Notification of Judgment

Once a judgment is issued in favor of the creditor, you will be formally notified, usually through court documents or legal notice. This confirms that you owe the debt and the creditor can take further legal steps to collect it.

2. Wage Garnishment Process

If the creditor wants to garnish your wages, they will need to take additional legal steps, depending on local or state laws. Here’s the general process:

• Court Order for Wage Garnishment: The creditor typically must file for a court order authorizing the garnishment. This process may involve another hearing where you can object or provide evidence (for example, if garnishing your wages would cause financial hardship).
• Garnishment Notification to Employer: Once the court approves the garnishment, a copy of the garnishment order will be sent to your employer. The employer is then legally required to withhold a portion of your wages and send it to the creditor.

3. Limits on Garnishment

There are legal limits to how much of your wages can be garnished. Under federal law, creditors can garnish up to 25% of your disposable earnings (after taxes) or the amount by which your earnings exceed 30 times the federal minimum wage, whichever is less. However, this can vary based on state law. Certain types of income (like Social Security or disability benefits) are also generally exempt from garnishment.

4. Other Collection Methods

Besides wage garnishment, the creditor can use other methods to collect the debt:

• Bank Account Levy: They may obtain a court order to take money directly from your bank account.
• Property Liens: The creditor can place a lien on your property, which means you can’t sell or refinance it until the debt is paid.
• Seizure of Assets: In rare cases, a creditor may seek to seize and sell your personal assets, though this depends on the state and the value of the items.

5. Impact on Credit

A judgment will also appear on your credit report, negatively affecting your credit score. It can stay on your report for up to seven years, impacting your ability to get loans, credit cards, or even housing.

6. How to Stop Wage Garnishment

If your wages are being garnished or you fear they might be, you can take certain steps:

• Negotiate with the Creditor: Sometimes, creditors may agree to a payment plan instead of garnishing wages.
• File a Claim of Exemption: You may be able to reduce or stop garnishment by proving that it causes undue hardship.
• Bankruptcy: Filing for bankruptcy can stop wage garnishment in some cases.

Summary

After a judgment, creditors gain the legal right to start collecting the debt, which often includes wage garnishment. This process involves obtaining a court order, notifying your employer, and legally withholding part of your wages. However, there are limits and certain types of income that may be protected.