How to Stop A Garnishment In Oklahoma

Having problems with IRS wage garnishment in Oklahoma? Let Hutton Tax Solutions help you on how to stop this from being executed. Learn more.

Understanding Wage Garnishment in Oklahoma

In the event that you don’t voluntarily pay your debt, a creditor can garnish your wages or your checking account to do so. By court order, employers must withhold wages for the payment of a debt, such as a child support, from a person’s earnings.

Garnishments can only be obtained if a judgment has been obtained against you. However, certain types of income, including Social Security benefits, workers’ compensation, unemployment benefits, and supplemental security income, among others, are exempt from being garnished, either by state or federal law.

With the assistance of a tax attorney, you can navigate these complexities successfully. For a free consultation on your case, contact Hutton Tax Solutions.

How Does the Wage Garnishment Process in Oklahoma Go?

Although the wage garnishment process in Oklahoma depends on the type of debt being collected, the process includes several steps. Garnishment proceedings typically begin when a creditor sues you and obtains a judgment against you. The creditor must have a judgment against you before getting a garnishment.

It’s important to know you have five days to object to the wage garnishment. If you do, the court will hold a hearing to determine whether your wages are exempt or if the garnishment is valid. If you don’t show up for the hearing or don’t raise any objections, the court will issue a garnishment summons. The employer has to respond to the garnishment by withholding a portion of the debtor’s wages and send them to the creditor’s attorney.

How To Stop A Wage Garnishment

In addition to paying the debt in full, wage garnishment can be stopped using the following methods:

Bankruptcy to Stop Garnishment

Bankruptcy will typically stop a wage garnishment order and protect you from creditors seeking new garnishments, excluding garnishments relating to child support.

A bankruptcy lawyer from a respectable law firm can help you determine whether Chapter 7 or Chapter 13 best suits your circumstances. Reach out to Hutton Tax Solutions today to learn more.

Undue Hardship Exemption

If you have a family that you support, you can apply for an undue hardship exemption. An undue hardship exemption is a court decision stating that you cannot afford to pay your creditors since all your money must be spent on supporting your family. Undue hardship exemptions are only available if you have dependents who rely on your income to survive.

Bear in mind that timing is crucial when applying for undue hardship. You have to ask for the exemption within five days from the day the garnishment notice is received.

Additionally, you cannot be made to pay more than one garnishment at a time, unless one of them is for child support.

Negotiation With Creditors

With the right representation and guidance, you may be able to reduce the garnishment amount by negotiating better terms with the creditor or the creditor’s attorney. You can come to an agreement that will not impose undue burdens on you and your family, such as paying over a more extended period.

Even if you owe the Internal Revenue Service (IRS), you can negotiate back taxes or apply for debt forgiveness through an Offer in Compromise (OIC). The OIC is a settlement agreement between the IRS and the taxpayer that settles their tax liabilities for less than what they owe.

Contact a tax professional offering IRS tax services to learn more about wage garnishments in Oklahoma.

Total Wage Garnishment Amount

Your wages must be garnished from your disposable earnings, which are your earnings after mandatory deductions, such as taxes and unemployment insurance.

However, a creditor can not seize all of your weekly earnings. Some legal limits and rules determine how much of your pay can be garnished.

How Much Can Be Garnished from Your Paycheck in Oklahoma?

In terms of federal and Oklahoma state laws, a creditor can garnish lesser of the following:

  • 25% of your monthly take-home pay or
  • the amount by which your weekly disposable earnings exceed 30 times the federal minimum hourly wage

In other words, the creditor can garnish either 25% of your disposable weekly wage or the amount of your disposable earnings greater than $217.50 per week, which is 30 times the federal minimum hourly wage.

Additionally, Also, a creditor must leave you with at least $217.50 a week or $870 a month in net pay. A creditor can’t garnish a complete 25% if you work part-time or for low wages.

Stop Wage Garnishment With a Bankruptcy Professional

If you are going through wage garnishment, we understand the financial stress you may be experiencing. That’s why we’re here to help. Contact us today to learn how we can help you get the tax debt relief you need.

For a free evaluation of your case, schedule a consultation today!