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If you owe money and your creditor gets a judgment against you, that creditor can garnish your wages to receive either 25% of your disposable earnings or your disposable earnings less 30 times the current federal minimum wage.
And some states also allow judgment liens on the debtor's personal property -- things like jewelry, art, antiques, and other valuables. In Ohio, a judgment lien can be attached to real estate only (such as a house, land, or similar property interest).
Wages and other property, including bank accounts, may be garnished. However, the 25% limit on garnishment of personal earnings continues even when the money is deposited into a personal checking account. The amount that can be garnished must be determined at the garnishment hearing.
In Ohio, a debt collector may only garnish up to 25% of your non-exempt wages and must leave at least $425 in your bank account. They also may not seize a vehicle worth less than $3,225. Better yet, the law protects $125,000 in home equity from creditors and $10,775 in aggregate value of household goods.
With your demand letter or notice, you will get a form titled ?Payment to Avoid Garnishment.? Complete the form and return it to the creditor within 15 days and you can make periodic payments without having to go through the formal garnishment process.
The total amount garnished cannot be more than 25% of the employee's monthly disposable earnings. Exemptions from garnishment, including, but not limited to, worker's compensation, unemployment compensation, disability payments, OWF payments, or child support or spousal support, and most pensions.
Wage Garnishment Results from a Court Judgment or a Governmental Action. Most creditors can't begin garnishing your wages just because you fell behind on a bill. The creditor must first file a collection lawsuit and receive a judgment permitting them to take a portion of your paychecks.
Section 2716.041 Order of garnishment of personal earnings to be continuous.