Can a private company have your wages garnished?

[Wizard29]

One of the guys that works for me got into a wreck and his car was totaled. The insurance paid him for it, but not enough to cover the entire balance of his loan.
He is fighting with his finance company over paying the rest. Yes, I know it is still his responsibility, but it doesn't sound like he plans to pay them.
He asked me if it would be possible for the finance company to have his wages garnished/attached if they were to get a judgment against him. I told him it could very well be possible, but I'd have to check. So naturally, I am seeking the ultra accurate information that can only be found on ***boat.
What's the answer?

[deltaAce]

I don't think so, I believe they pull out the big guns on child support cases.

[YeLLowBoaT]

unless they work for the post office, they can have thier wages garnished... postal employees are the only ones that can't.. the IRS can't even touch them.

[C-2]

Yup, next to levying his bank accounts, it's the easiest route to getting paid. As an employer, you won't have any choice but to comply. If you do any shifty stuff, or ignore the EWO (Earnings Witholding Order), they will come after you (which is actually preferred since you have money).
He needs to work out a deal with either them, or obtain a personal loan to pay that amount. Otherwise, they'll tack on legal fees and if they get a judgment - it accrues at 10% per year, which as a judgment holder, is a pretty good investment againt a young guy. Eventually he will have to pay and bankruptcy is no longer an easy or available avenue.
Tell him to offer half the amount, see what they say. The key to success is cooperation, not confrontation. Truth is, for about $600 they canget one of their collection lawfirms to sue him and get a judgment, so tell him not to be cocky. Tell him to play harball for a lesser amount, but do it nicely.

[Boatcop]

A private company can't garnish wages without a court order. They would have to sue and win. The judge would then issue the garnishment order.

[BoatPI]

Once the employer is served with the court order they must comply in CA. So why worry, just pay the debt owed or better yet workout an agreed upon payment program with the company.

[SmokinLowriderSS]

Court ordered judgement.
Judement followed by more attorneys and garnishent order.
Garnishment order sent to employer.
I DO believe that all they can take is 25% max.
That's how it works.
Let's make my long story short.
Voluntarilly let repo a car I couldn't afford in 2nd divorce 1998.
They sold for $4k less than my loan. I owed the $4,000
Keep that 4-grand figure in mind.
It's been a garnishment since about 1999
have paid in estimate, $16,000 overall, $5000+ in the last 12 months
Current debt, $9,000+
Just settled yesterday, $6,000 cash.
23.95% interest.
Any questions?
2nd ex wrecked credit enough (and income was $114 a week take-home post divorce) so loan was out of the question at the time.
Just paid it with a loan from my 401K.

[Wicked Performance Boats]

unless they work for the post office, they can have thier wages garnished... postal employees are the only ones that can't.. the IRS can't even touch them.
I work for the Post Office and I've seen fellow employees wages garnished and we're not safe from the IRS! IRS will get anybody who's in their sights! Budlight

[SHOTKALLIN]

just ask Wesley Snipes. I hear he will get at least 2 years.

[RitcheyRch]

If they find him. They think he in Africa and Africa will not extradite to the US.
just ask Wesley Snipes. I hear he will get at least 2 years.

[SmokinLowriderSS]

If they find him. They think he in Africa and Africa will not extradite to the US.
Bet that puts an end to an acting career then. Not many studios in Africa, and I'd hate to be the studio that pays him any more from here.

[BoatFloating]

Very rare do you see a company garnish wages and it's tough and not worth it in these cases. Child support all day long but Repo, collection accounts etc not likely.. I see credit reports all day long and they're one their credit....

[deltaAce]

Voluntarilly let repo a car I couldn't afford in 2nd divorce 1998.
They sold for $4k less than my loan. I owed the $4,000
Keep that 4-grand figure in mind.
It's been a garnishment since about 1999
have paid in estimate, $16,000 overall, $5000+ in the last 12 months
Current debt, $9,000+
Just settled yesterday, $6,000 cash.
23.95% interest.
Any questions?
2nd ex wrecked credit enough (and income was $114 a week take-home post divorce) so loan was out of the question at the time.
Just paid it with a loan from my 401K.
OOOWWWWWWW, that had to have left a scar.
I would need counciling after that, 3 times a week, with meds! :cry:

[C-2]

Considering today’s low interest rate, having late payments and a judgment is just stupid. It can and will knock his score, which could literally costs thousands, possibly tens of thousands over the years since he won’t be able to take advantage of low rates. Fawk, now they even pull credit reports to open bank accounts.
If he obtained a loan while he was employed by you – trust me, they will pursue it. Creditors will always make one good attempt and it sounds like they already told him about wage garnishment, so they know he’s employed. They also know where he banks and they’ll seize his bank accounts too. With a judgment in hand, they can take pretty much anything except certain benefits…they can even take his pet dog. If he lives in a community property state, wifey's wages are fair game too if they get a judgment (yeah, think about explaining that one to her).
Tell him to remember - he's paying for all the legal fees and they will make them add up to several thousand dollars on top of the principal amount.
Tell him to buy a vehicle, finance it thru them and tack the deficiency onto the loan. Kind of like a lot of people do anyway when they take it in the arse over a bad lease. My neighbor ate $6K…ouch.
Print SmokinLowriderSS’s post – he speaks words of wisdom. There’s no doubt he would have paid that original amount had he known what he does now.
-- Trust me, I offered an informed opinion; I work in judgment enforcement and collections. ;)

[Wizard29]

I guess I'll tell him he's fu*ked. :)
C-2, I'm not sure if he got the loan while working for me. He's only been around since March or so, and I remember him having the truck on or about his first day, so I'd assume not.
I gave him his paycheck the other day and he asked me if it is possible for that finance company to take some of it. I guess he wanted to know if it was going to be smaller before he opened it. Not yet, but I guess it could.
Thanks for the info guys. I'll pass it on.

[YeLLowBoaT]

I work for the Post Office and I've seen fellow employees wages garnished and we're not safe from the IRS! IRS will get anybody who's in their sights! Budlight
really since that would be against federal law, now if you comit fraud, then no they are not safe.

[jimslade]

YES, YES, YES, and its not hard. I would worry more about his credit report.

[ratso]

One of the guys that works for me got into a wreck and his car was totaled. The insurance paid him for it, but not enough to cover the entire balance of his loan.
He is fighting with his finance company over paying the rest. Yes, I know it is still his responsibility, but it doesn't sound like he plans to pay them.
He asked me if it would be possible for the finance company to have his wages garnished/attached if they were to get a judgment against him. I told him it could very well be possible, but I'd have to check. So naturally, I am seeking the ultra accurate information that can only be found on ***boat.
What's the answer?
What bothers me about this whole ordeal is insurance companies ripping people off. I hear it about State Farm more than any other company, and have enough dealings with thise tards the way it is. I won't go into the entire story, but State Farm tried ripping me off on a claim when my son's car was totalled... he wasn't driving and the driver of the other car was at fault. It took two months of fighting with them, but in the end I got the $4000 extra that they were trying to screw me out of. Sounds to me like your employee should have fought this one out. State Farm is also trying to screw a friend of mine over on a boat repair job... I have been fighting with them for four months now over it, and these idiots are crazy if they think I'm going away... Gotta fight with these fukkers sometime... and don't even get me started on how State Farm is screwing the Katrina victims...

[No Name]

Can a private company have your wages garnished? What's the answer?
Not sure, but I know that an ex-wife can. :cry: :cry: :cry:

[dragboat]

One of the guys that works for me got into a wreck and his car was totaled. The insurance paid him for it, but not enough to cover the entire balance of his loan.
He is fighting with his finance company over paying the rest. Yes, I know it is still his responsibility, but it doesn't sound like he plans to pay them.
He asked me if it would be possible for the finance company to have his wages garnished/attached if they were to get a judgment against him. I told him it could very well be possible, but I'd have to check. So naturally, I am seeking the ultra accurate information that can only be found on ***boat.
What's the answer?
As you stated, it is his responsibility to pay his debt. If he doesn't want to be a honest stand up guy I would not want him around my business ect. I'm on the board of a credit unuion and also have a business with 10 people. I know you didn't ask, just my .02.

[dragboat]

I think RATSO is on the money. The ins company is where the fight should be.

[SmokinLowriderSS]

Not sure, but I know that an ex-wife can. :cry: :cry: :cry:
Well, an "Income Withholding", while looking amazingly like a garnishment, and working almost like one, isn't one.
You can only have 1 garnishment apply to you at a time, and only for 25% max of your gross check I believe.
I have 2 IWO's (the simple way to make sure my support gets paid, I don't really mind it, and between them they NORMALLY get about 1/3 (same as my taxes), but they could get whatever the order called for, even if it was well over 1/2.
Top that with the garnishment described above. which usually got about 20% to 25%.
Fun stuff. :rolleyes:

[Nord]

We are a small company and a girl had her wages garnished for child support...I'll find out.

[Wicked Performance Boats]

really since that would be against federal law, now if you comit fraud, then no they are not safe.
Pease post the law. I say BS BL