Wage garnishment is a serious legal matter that can significantly impact your financial stability if not handled correctly. In California, wage garnishment occurs when a court orders your employer to withhold a portion of your earnings to repay a debt. While the process is regulated by state and federal laws, many individuals make critical errors that can worsen their situation. Understanding these common mistakes and learning how to avoid them can help you navigate wage garnishment more effectively and protect your financial well-being.
Ignoring Legal Notices
One of the most frequent and damaging mistakes in wage garnishment cases is ignoring the initial legal notices. In California, before garnishment begins, you’ll typically receive a notice called an “Earnings Withholding Order.” This is your opportunity to respond, dispute the debt (if applicable), or request a hearing.
Failing to respond within the specified time frame can result in automatic garnishment without your input. Don’t wait until your paycheck is affected—take action as soon as you receive a court notice.
Tip: Open all mail from creditors or courts immediately and consult an attorney if you’re unsure how to proceed.
Not Understanding California Garnishment Laws
California law limits the amount that can be garnished from your wages. As of 2024, the maximum is the lesser of:
- 25% of your disposable earnings (after taxes), or
- The amount by which your disposable earnings exceed 50 times the state minimum wage (currently $16/hour for many workers).
Many people don’t realize these protections exist and accept unlawful garnishment amounts. Some creditors or debt collectors may even attempt to take more than what’s legally allowed.
Tip: Learn your rights under California law or work with a knowledgeable attorney who can ensure your wages aren’t being over-withheld.
Failing to File a Claim of Exemption
If garnishment would cause financial hardship—for example, preventing you from paying rent or supporting dependents—you may be eligible to reduce or stop the garnishment through a “Claim of Exemption.”
Too many people fail to file this claim either because they don’t know it exists or they assume it won’t help. In reality, courts can and do modify garnishment orders when justified.
Tip: Complete and file the Claim of Exemption form promptly if you’re struggling financially. Attach evidence of your expenses and income.
Not Verifying the Debt
You have the right to verify the debt before it leads to wage garnishment. In some cases, debts are sold multiple times, and the party trying to garnish your wages may not have proper documentation.
Failing to verify the debt might result in you paying off an old, invalid, or even already-settled debt. California law gives you the right to dispute debts and demand proof.
Tip: Request a debt verification letter and scrutinize the claim before garnishment begins. If anything looks questionable, seek legal help.
Delaying Legal Representation
Many people wait until their wages are already being garnished to speak with a lawyer. By that time, damage may have already been done. Early legal intervention can help you explore options such as negotiating a payment plan, disputing the debt, or filing bankruptcy if necessary.
Working with an attorney from the start can also ensure all paperwork is filed correctly and deadlines are met.
Tip: Don’t wait until the last minute. Contact a California debt defense or consumer law attorney as soon as you receive any collection notice.
Neglecting to Communicate with Your Employer
While it may feel embarrassing, clear communication with your employer is important. They are legally required to comply with the garnishment order, but mistakes can happen. An employer might withhold too much, start garnishment prematurely, or fail to stop garnishment after the debt is paid.
Tip: Provide your HR department with all relevant documents and follow up regularly. If you resolve the garnishment, make sure the court sends a formal release order to your employer.
Overlooking Alternative Debt Solutions
Wage garnishment is not the only way to address unpaid debt. Many individuals are unaware that alternatives like debt settlement, bankruptcy, or negotiating directly with creditors might be more effective and less disruptive.
Tip: Consult with a financial advisor or debt attorney to evaluate your full range of options. An informed decision can help you avoid wage garnishment altogether.
If you’re dealing with wage garnishment in California, it’s understandable to feel anxious about navigating the situation. Wage garnishment can be complex, especially when different state laws come into play. Understanding these laws and knowing how to avoid common mistakes can significantly improve your experience and outcome. At Fitzgerald & Campbell, we’re committed to helping you through this process by offering personalized advice and leveraging our vast experience in consumer protection.
If you're confronted with wage garnishment and feel overwhelmed by the challenges, our team is ready to assist. Reach out to Fitzgerald & Campbell today at (844) 431-3851 to discuss your options and create a plan that safeguards your financial well-being.