STOP WAGE GARNISHMENT 

HOW TO STOP WAGE GARNISHMENT IN MARYLAND (MD)

The option to stop wage garnishment is a lifeline many people need. At http://marylandwagegarnishment.com/, we are a team of experienced lawyers practicing to provide the necessary advice and consultation on everything related to wage garnishment, including how to navigate a bank garnishment. We're a company committed to supporting businesses, ensuring they're not left defenseless in the face of a possible wage garnishment situation, which could lead to severe financial implications such as liquidation.

Everything you need to know to stop a MD wage garnishment effectively, inexpensively and quickly, including your rights and the reason behind the garnishment, can be found here. Our content is designed to guide you through the process and rules surrounding wage garnishment. This readily accessible information is worth far more than any payment. Additionally, we also provide guidance on how to file an objection against a garnishment, if you believe it is unjust, as part of our practice.

Maryland law limits how much of your earnings that a creditor can attach (garnish) from your wages for repayment of debts, from alimony down to personal loans. The Maryland wage attachment laws, also called wage garnishment laws, serve as a form of protection for workers, businesses, and company income. In some Maryland counties, these rules mirror the federal wage garnishment laws. However, the specifics can be more restrictive in other counties. Note that for several types of debts, creditors can demand more than the general limit.

Continue reading this guide to gain more insight into the ins and outs of wage execution law in Maryland. You'll find yourself better equipped to handle any relevant legal summons you may encounter in the future. This content offers a layered defense against the potential of wage garnishment.

Here, we provide an updated look into wage garnishment as of 5 / 11 /2021. It's a rule of our company to regularly update our content to reflect the most recent legal practices and changes.

WHAT IS A MARYLAND WAGE GARNISHMENT? 

A wage garnishment or wage attachment is an order from a court or a government agency, delivered to your employer. This mandate instructs your employer to withhold a certain amount from your paycheck and transfer this money directly to your creditor, a practice that could lead to severe implications if not addressed promptly.

The rules surrounding garnishment vary depending on the type of debt in question, and these inevitably affect the maximum amount that can be taken from your pay. It's fundamental that you understand these limits as part of your rights, protecting your interests and ensuring the continued health of your personal and company finances.

To further grasp how wage garnishments work, how to lodge an objection against a wage garnishment, and more, you're welcome to book a consultation with us. Let us provide the defense and payment solutions your financial health requires.

The circumstances under which a creditor can garnish your wages in Maryland are not left to chance, nor are they subject to arbitrary rules. Rather, they are governed by carefully considered legal guidelines.

Typically, most creditors need a court judgment confirming that you owe them money before they can proceed with wage garnishment. This necessitates a legal process where warrants for your credit card default or unpaid doctor's bill have to be raised. But, in some instances, such as company liquidation or business restructuring, your wages could be garnished without any court judgment for several reasons:

Certain tax liabilities,

Court-ordered alimony,

• Outstanding child support payments, and
  Defaulted federal student loans.
  There are restrictions on the extent of wage garnishment in Maryland - and it's not just businesses that need to understand these rules.

• These limits are imposed to ensure enough of your income is left untouched for your living costs. Federal law places caps on wage garnishment amounts, with some Maryland counties following similar guidelines. But the implementation can be stricter in other Maryland counties, something that could affect both individuals and businesses.
  The rules are explicitly stated as follows:

• Queen Anne’s, Kent, Worcester, and Caroline Counties maintain laws similar to federal ones.In the complex realm of commercial law and debt collection, it's critical to understand how legislation can affect your disposable income. Equally important is knowing the way these regulations impact different aspects of your financial health, such as income from companies you've worked for, or your retirement funds. As a trustee, your knowledge of these regulations could shield you from any unnecessary financial difficulties.

LIMITATIONS ON MARYLAND WAGE GARNISHMENTS

Here, your creditors, armed with a court petition, can garnish the lesser of:

• A quarter of your disposable earnings for a week, or

The sum exceeding 30 times the federal minimum hourly wage from your disposable earnings for that week, after obtaining the necessary approval from the bankruptcy court.

If your residence is in a county aside from Queen Anne's, Kent, Worcester, or Caroline, Maryland Code Ann., [Com. Law] § 15-601.1 dictates that creditors can garnish the lesser of:

In light of the extensive experience we've gained in the field of commercial law, we understand that your disposable income is a crucial ingredient in determining your financial stability. Thus, creditors can garnish 25% of your disposable earnings for that week or

The amount by which your disposable earnings for the week exceed $145 is a key point of reference for income garnishment. This measure is put in place to control the cash flow between debtors and creditors, ensuring a fair system of repayment that meets the requirements of both parties involved.

• “Disposable earnings” are those wages left after your employer has made deductions required by law such as unemployment insurance. Understanding these practices is part of your rights that with our assistance, we ensure you know about.
  Along with this, knowing about the limitations of these regulations is important, most especially in the context of a retirement, where money judgment might be impacted. If, for instance, you are faced with the possibility of filing a bankruptcy petition, the knowledge of these practices could be invaluable.
  A Maryland Appellate Court decision became significantly important in such scenarios. The page detailing this law was however ruled to be invalid if the $145 prong results in a garnishment amount that is greater than that which is allowed by federal law.

• The court in Marshall v. Safeway noted that while the Maryland code got the law wrong, the District Court Form for wage garnishment got it right. That form tracked the federal wage garnishment limit for all counties; it didn't mention the $145 prong.

After the Marshall v. Safeway decision and subsequent complaint, the District Court Form was amended to include the $145 prong. An injunction was also applied, as noted on the same page.

• Despite the wording of the form, if a judgment creditor tries to garnish your wages under the formula and the amount exceeds what is allowed under federal law - directly affecting your retirement money, you may challenge the amount in a bankruptcy court.
  Example:
  You take home $500 per week after taxes and live in Queen Anne’s County. 25% of your disposable earnings equals $125 and your disposable earnings less 30 times the federal minimum wage equals $282.50. Your creditor can take the lesser amount, that being $125 per week, considered to be satisfactory in regulation with judgment.In fact, Special Limits for Child Support, Student Loans, and Unpaid Taxes can greatly impact your financial stability.

• If you owe child support, student loans, or taxes, the government or your creditor can garnish your wages without having to fight through the intricacies of the bankruptcy code or getting a court judgment. Not only is this situation often a prime cause of complaint, but it inevitably poses a considerable risk to your financial health, with the impact being felt significantly during retirement. The amount that can be garnished differs greatly depending on the nature of the debt and your personal circumstances.

Since 1988, in a move to improve the ability of parents to collect child support, all court orders for child support include an automatic income withholding order. The other parent can also get a wage garnishment order from the court if you get behind in child support payments. This could lead to further complications, forcing you to seek services from banks, law firms or even the office of child support enforcement. (To learn about income withholding orders and other ways child support can be collected, see Child Support Enforcement Obligations.)

In Maryland, income withholding for support follows the federal Consumer Credit Protection Act standards. Federal law limits what can be taken from your paycheck for this type of wage garnishment. Additionally, certain products such as state taxes are another kind of deduction that can affect your income. Moreover, financial institutions such as banks need to adhere to these guidelines when processing such transactions. An extra 5% may be garnished for support payments over 12 weeks in arrears. This article will provide more answers on how to navigate these complex issues. (Learn more about wage garnishment for child support arrears.)

Upon defaulting on a federal student loan, the U.S. Department of Education or any entity collecting for this agency can garnish your wages without first getting a court judgment – this is called an administrative garnishment and might pose a significant impact on your retirement savings, prompting many to challenge such collection efforts. The most that the Department of Education can garnish is 15% of your disposable income, but not more than 30 times the minimum wage. (Learn more about this in S Debt articles.)

The federal government owns the ability to levy and garnish your wages if you owe back taxes, even without a court judgment. This power is exercised on an individual basis and the amount it can garnish depends on how many dependents you have and your deduction rate.

State and local governments, in their relentless collection efforts, may also be able to garnish your wages to collect unpaid state and local taxes. This is something many people, especially those who are knee-deep in debt, might not be aware of, hence increasing the risk to their financial health. In Maryland, this can be done in accordance with the Salary Lien provision of Maryland law. To find the answers to your questions regarding this process, check out the article on the Maryland Comptroller’s office website.

Moving on to the total amount of garnishment, the established rule is this: if you have more than one garnishment, the total amount that can be garnished is limited to 25%. For instance, if the federal government is garnishing 15% of your income to repay defaulted student loans and your employer receives a second wage garnishment order, the employer can only take another 10% of your income to send to the second creditor. Understanding these limits is crucial, as they could greatly affect your financial situation especially if you are deferring debts or considering bankruptcy.These kinds of provisions are made to prevent individuals, who are seen as customers of the financial ecosystem, from being excessively burdened by debt repayments. This helps safeguard your resources and ensure that repayment plans are fitting to the debtor's financial situation.

Complying with wage garnishment orders can be a costly process for your employer, sometimes to such an extent that some might be inclined to terminate your employment rather than comply with the order. Not only does it consume resources, but it also involves taking additional steps to adjust payroll accounts and payment rates. However, State and federal laws provide protection in this situation and can halt any such plans.

According to federal law, your employer cannot discharge you if you have one wage garnishment order. However, federal law won’t protect you if you have more than one wage garnishment order. In case of such an eventuality, an individual may feel like he is in the midst of a personal lawsuit.Navigating the hardship of financial debt can be challenging, especially when managing multiple accounts. Fortunately, some states offer more protections for debtors. For instance, in Maryland, your employer cannot fire you for a single garnishment in one calendar year. This law serves as a form of legal shield for individuals struggling with debt, providing a valuable settlement pathway that defends those in financial trouble.

For More Information on Maryland Wage Garnishment Laws and Settlement Options, As Well as Cost-Efficient Measures

To find more information about wage attachments in Maryland, including the procedures that employers must follow in carrying out wage attachment orders, understanding potential settlement options, and learning about the cost implications for both employees and employers, check out the website of the District Court of Maryland at www.courts.state.md.us. If you do not seek to enforce or dismiss the writ within 120 days after the garnishee's answer is filed, after proper notice to both the judgment debtor and judgment creditor, the garnishee may request to terminate the writ. If the judge decides in your favor, the garnishee will be ordered to pay the funds from the debtor’s account. At this point, certain finances tied into exemption relief can come into effect, which would be specifically relevant if the debtor files for chapter 7 bankruptcy.

What is a garnishment? And what options are there for preventing or dealing with it?

To “garnish” is to take property (most often a portion of someone's wages or pay) by court order. Garnishment is a proceeding by a creditor to collect a debt by taking the property or assets of a debtor. Any person or business can be subject to garnishment. In certain cities like Baltimore, the garnishment law and procedures may significantly vary from those of other areas, offering different options for handling the situation.

The person who starts the garnishment process is termed the judgment creditor or plaintiff; the individual owing the creditor is referred to as the judgment debtor or defendant.

If you have more than one garnishment, the total amount that can be garnished is limited to 25%. For instance, if the federal government is garnishing 15% of your income to repay defaulted student loans and your employer receives a second wage garnishment order, the employer can only take another 10% of your income to send to the second creditor. This course of action is taken to prevent individuals from being excessively burdened by debt repayments.

Complying with wage garnishment orders can be a hassle for your employer, sometimes to such an extent that some might be inclined to terminate your employment rather than comply with the order. However, State and federal law provide protection in this situation and can halt any such plans.

According to federal law, your employer cannot discharge you if you have one wage garnishment. However, federal law won’t protect you if you have more than one wage garnishment order. In case of such an eventuality, an individual may feel like he is in the midst of a lawsuit.

Some states offer more protection for debtors. In Maryland, your employer cannot fire you for a single garnishment in one calendar year. This law offers a form of legal shield for individuals struggling with debt.

For More Information on Maryland Wage Garnishment Laws

To find more information about wage attachments in Maryland, including the procedures that employers must follow in carrying out wage attachment orders, check out the website of the District Court of Maryland at www.courts.state.md.us.

Can an Employer Discharge an Employee Because of a Garnishment? No, an employee may not be discharged because wages are subject to garnishment for any one indebtedness within a calendar year. In terms of legal action, an employer who wilfully violates this provision is comparable to a lawsuit - the employer is guilty of a misdemeanor and subject to a fine not exceeding $1,000, imprisonment not exceeding one year, or both. Can Wages Be Garnished for Child or Spousal Support? Yes, but the District Court does not handle these cases. You must file in circuit court. Can a Debtor or Garnishee Defend Against a Garnishment? Yes. A debtor or garnishee has the right to object to a garnishment at any time. To object, file an appropriate motion with the court. Can a Debtor’s Bank Account be Garnished? Yes. To garnish a bank account, file a Request for Garnishment of Property Other than Wages (DC-CV-060). You must provide the name and address of the debtor’s financial institution.The garnishee is served and must reply within 30 days with a Confession of Assets, a list of assets belonging to the creditor held by the bank. You will receive a copy. After 30 days have passed since the original request, you file a Request for Judgment-Garnishment (DC-CV-062) with the court and send copies to both the debtor and garnishee. If you do not seek to enforce or dismiss the writ within 120 days after the garnishee's answer is filed, after proper notice to both the judgment debtor and judgment creditor, the garnishee may request to terminate the writ. If the judge decides in your favor, the garnishee will be ordered to pay the funds from the debtor’s account. At this point, certain finances tied into exemption relief can come into effect, which would be specifically relevant if the debtor files for chapter 7 bankruptcy.

What is a garnishment?

To “garnish” is to take property (most often a portion of someone's wages or pay) by court order. Garnishment is a proceeding by a creditor to collect a debt by taking the property or assets of a debtor. Any person or business can be subject to garnishment. In certain cities like Baltimore, the garnishment law and procedures may significantly vary from those of other areas.

• The person who starts the process is called the judgment creditor or plaintiff; the person who owes the creditor is the judgment debtor or defendant. The person holding the property of the defendant, or who is indebted to the defendant, is the garnishee. A garnishee can be a bank, an employer or other person who holds property that belongs to the judgment debtor.
  To collect money owed, the plaintiff must first obtain a final judgment or order against the defendant in court. For more information on filing a claim see Collecting a Judgement. A garnishment proceeding determines whether the debtor has any assets that can be used to pay a judgment.

Once a judgment has been entered, the creditor can collect what is owed. Judgments are enforceable in Maryland, including Baltimore, for 12 years and they can be renewed. Interest accrues on judgments at the legal rate of 10% or 6%. Here, dictated finances can be further complicated if chapter 7 bankruptcy is declared by the debtor.

Two common types of garnishment proceedings are garnishment of wages and garnishment of property and assets, like a bank account. In some cases, exemption relief is sought to protect certain assets or finances.

Garnishment Procedure in District Court

Note: the following processes are based on District Court Rules of Procedure. They apply if you have a judgment in the District Court of Maryland, extending to the city of Baltimore. See Md. Rules Title 3, Chapter 600. The rules for garnishing property in Circuit Court are very similar, however, there may be some differences. See. Notably, the Circuit Court does not have forms for judgment creditors to use. Some Circuit Courts may allow you to use District Court forms. Others may require you to draft your own motions and requests. If you have questions about court procedure, talk to a lawyer.

The creditor begins the garnishment process by filing a Request with the court. There is a fee to file the Request. After the Request is filed, the court clerk or a judge signs the Request and it becomes a Writ of Garnishment, a crucial step that can have profound implications on a debtor's finances and any potential claims for exemption relief.

Garnishment Procedure in District Court

Note : the following processes are based on District Court Rules of Procedure. They apply if you have a judgment in the District Court of Maryland. See Md. Rules Title 3, Chapter  600 . The rules for garnishing property in Circuit Court are very similar, however, there may be some differences. See. Notably, the Circuit Court does not have forms for judgment creditors to use. Some Circuit Courts may allow you to use District Court forms. Others may require you to draft your own motions and requests. If you have questions about court procedure, talk to a lawyer.

The creditor begins the garnishment process by filing a Request with the court. There is a fee to file the Request. After the Request is filed, the court clerk or a judge signs the Request and it becomes a Writ of Garnishment. A “writ” is a formal command ordering a person or entity to take some action. A Writ of Garnishment is a court order to the garnishee. It orders the garnishee to hold any property of the judgment debtor that the garnishee possesses at the time the Writ is filed.

The Writ of Garnishment must be served on the garnishee via certified mail, restricted delivery, private process or sheriff/constable. For more information on service of process see

The garnishee must file an answer to the Writ with 30 days of being served. The answer should say if the garnishee has property that belongs to the judgment debtor, and if so, how much. If the garnishee does not respond to the Writ of Garnishment, the garnishee may be held in contempt of court, and, in some cases, may have a judgment entered against them.

If the Writ of Garnishment is issued for a bank account, after the Writ is served on the bank, the bank “freezes” the judgment debtor’s bank account. This means the judgment debtor will be unable to access money in the account unless the amount in the account exceeds the amount of the garnishment. If additional money is deposited into the bank account (like a direct deposit from work), it is often frozen too. The bank often assesses fees and costs associated with the garnishment proceeding.

Some assets may be exempt from garnishment. Money in a bank account held jointly by husband and wife cannot be used to satisfy a judgment unless both are judgment debtors or, in some cases, if the account was established after the judgment was entered. This is the same for business partnerships.

Other assets that are protected from garnishment include most federal benefits including Social Security, federal pensions and disability funds, child support payments, and many state benefits, like unemployment. You can find a list of the federal benefits that are ordinarily exempt from garnishment on the.

Other money may be exempt up to the value allowed by law. The judgment debtor can file a if they have less than $6000 in a bank account that a creditor has requested to garnish.

. Code, Courts and Judicial Proceedings § 11-504

If the judgment debtor wants to object or raise exemptions to the garnishment, he or she should do this within 30 days of the bank being served with the Writ of Garnishment.

If no exemptions are raised, the judgment creditor must file a. This orders the garnishee to pay the money to the judgment creditor.

If the Writ is issued for wages, after the Writ is served on the employer, the employer must withhold wages as directed by the Writ until the judgment is satisfied, or until the court orders the employer to stop withholding. If there is more than one garnishment, each must be paid in full in the order it was served on the employer.

The creditor is required to send the judgment debtor and the garnishee a monthly judgment creditor’s report (statement) that discloses payments received and manner credited. View a sample Judgments Creditor’s Monthly Report . If the creditor fails to provide the report, the garnishee or the judgment debtor can file a motion to dismiss the garnishment and request the creditor cover reasonable attorney’s fees and costs to file the motion.

Garnishments filed BEFORE October 1, 2020

When wages are garnished, the employer pays part of the judgment debtor’s wages directly to the creditor. Wages cannot be garnished if the judgment debtor’s disposable wages are less than 30 times the federal minimum hourly wage per week ($217.50 per week). In any event, no more than 25% of your disposable wages for a week can be garnished.

The amount that can be garnished is a very confusing. The District Court publishes a very helpful brochure that contains an example of how the exemptions work:

Debtor earns $7.25 per hour, (federal minimum wage).

Weekly gross earnings = $290.00 (40 hrs. x $7.25).

Subtract deductions; disposable earnings = $232.00.

30 x $7.25 (minimum wage) = $217.50.

$232.00 - $217.50 = $14.50.

Amount that can be garnished: $14.50 each week.

The confusion arises because there is a Maryland law that could conflict with a Federal statute in some parts of the state. State law measures the amount of exemption, whereas the Federal statute measures the maximum amount that may be garnished. For a discussion of the conflicting laws, see

Garnishments filed AFTER October 1, 2020

When wages are garnished, the employer pays part of the judgment debtor’s wages directly to the creditor. Wages cannot be garnished if the judgment debtor’s disposable wages are less than 30 times the State minimum hourly wage multiplied by the number of weeks during which the wages due were earned. In any event, no more than 25% of your disposable wages for a week can be garnished.

The amount that can be garnished is a very confusing. The a very helpful brochure that contains an example of how the exemptions work:

Debtor earns $11 per hour, (State minimum wage).

Weekly gross earnings = $440 (40 hrs. x $11).

Subtract deductions; disposable earnings = $344.

30 x $11 (minimum wage) = $330.

$330 x 1 (number of weeks during which the wages due were earned) = $330

$344 - $330 = $14.

Amount that can be garnished: $14 each week.

A garnishee can oppose the garnishment by filing a motion with the court. Additionally, if the garnishee files an answer and no further filing is made regarding the writ of garnishment within 120 days, the garnishee can file a notice of intent to terminate the writ of garnishment.

The court may release some or all of the property if the judgment has been vacated, has expired, or has been satisfied, if property is exempt, or if the judgment creditor fails to comply with court rules.

The judgment debtor may also ask for some property to be exempt from garnishment by filing a motion within 30 days of the garnishee being served with the Writ of Garnishment.

A person other than the judgment debtor who has an interest in property subject to a garnishment may file a motion and ask the court to release the property. This often happens if people share a bank account and one person is a judgment debtor but the other is not.

When the judgment creditor has been paid the full amount of the judgment, they must file a written statement telling the court that the judgment has been satisfied and provide a copy to the judgment debtor. After filing the statement, the clerk of court shall enter the judgment as satisfied.