Bankruptcy Q&A / Credit Crisis

Wage Garnishment: Can My Wages be Garnished if I Receive Disability?

Credit card companies may file a lawsuit to enforce legal ways to collect from debtors when accounts go unpaid.  If the credit card company itself doesn’t pursue collection, then a collection agency may decide to pursue if they purchased the debt from the original creditor.  Unless you provide evidence that the debt has been paid or is not yours, creditors are likely to win a judgment against you.  Yet, under certain circumstances their collection options could be limited.

Many types of income may be eligible for wage garnishment but federal law prohibits disability income to be garnished by creditors.  As long as you continue to be eligible to receive your benefits, you should receive payment with no problems.  You should seek legal assistance if a creditor attempts to garnish disability benefits.

States vary as far as limitations and what can be garnished and for what purpose.  States such as Texas may not allow for garnishment for unsecured debt.  Wage garnishment may be an issue if you work part-time or receive other income along with disability.

While there are statue of limitations regarding when outstanding debt can be collected, there are also limitations for wage garnishment judgments.  Some states allow creditors to enforce a judgment and have it valid for a certain period of time.  Other states may allow for renewal of the court judgment once it expires.

If you have questions or concerns about a lawsuit received, validation of debt or wage garnishment, contact an experienced civil trial attorney.