New Georgia law extends time creditors can garnish your wages

A new Georgia law which took effect Jan. 1, 2021, gives creditors six times longer to garnish your wages and other funds. It also expands the list of those who can be the target for collections to include “gig” employers such as Uber and food delivery services.

What does this mean to you?

Garnishment is the most common way for creditors to collect money owed to them in Georgia. By court order a creditor may:

• take a percentage of your wages from your paycheck until your debt is paid, or

• take money from your bank or credit union account.

• Or BOTH!

Under the new law, a wage garnishment lasts for a much longer period of time — 3 years instead of 6 months, the limit under the old law.

At most, a creditor can only take the lesser of these amounts:

• 25% of your weekly take home pay

  What’s left when you subtract $217.50 from your weekly take home pay.

Your wages may be garnished even without a court order for these debts:

• unpaid income taxes

• some court-ordered child support or alimony

• past due guaranteed student loans

A garnishment be be stopped at any time by filing for Chapter 7 or Chapter 13 bankruptcy protection, and the sooner you act the more likely you are to have your money returned to you!

For more information, give us a call at 770-427-5853 or email me right away!