A wage garnishment is assessed through writ, or court order, if a person refuses to pay off creditors, collectors, or the government. While this is usually a last resort, the reality is that it does happen and once it does, a person’s entire life is impacted. A wage garnishment does not normally end until it is completely paid off. A tax attorney can help with tax relief however, such as through an Offer of Compromise with the Internal Revenue Service (IRS) or a settlement with the plaintiff in the case.
All states have their own way of following up with wage garnishment. In California, the maximum garnishment is the same as the federal government: Up to 25 percent of the debtor’s net disposable earnings. And once a California garnishment is in place, it remains until it is paid off. Also, because California is a community-property state, then the spouse of the debtor is subject to the levy as well.
As for statutes of limitations. While the IRS places no limit on when back taxes can be levied, the state of California does have a few limits in place that could impact garnishments. For instance, the state places a four-year limit on open credit card accounts and written contracts, and a 10-year limit on domestic and foreign judgments. While a person’s outstanding credit card debt would likely be addressed within those four years, there is a timeline that creditors and collectors need to work within.
If a garnishment is applied to a person’s wage, a Claim of Exemption could be filed on behalf of the debtor, stating that certain property or monies are exempt from levying. Statutory reasons must be listed in support of such claims and must be filed with the Levying Officer. In response, a Notice of Opposition to Claim of Exemption may be filed by the plaintiff.
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