Stop Wage Garnishment in Louisiana: Your Defense Options

Creditors who garnish your Louisiana wages can seize up to 25% of your weekly income. You can stop wage garnishment by responding to debt lawsuits or settling your debt.

When you struggle to make monthly payments, creditors usually work with you at first. They may allow smaller payments or forgive late fees temporarily.

Problems arise when you can’t get back on track. Your creditor will increase collection efforts with calls and letters. Eventually, they may sue you or sell your debt to a collections agency.

Taking action is crucial if your creditor sues you for debt in Louisiana. Ignoring a debt lawsuit can leave you facing severe financial consequences.

Defend Yourself From Wage Garnishment

Creditors can’t simply order your employer to withhold wages. They must go through a legal process, which involves winning a debt lawsuit.

When a lender sues you, you’ll receive a Complaint. The Complaint lists the debt amount and details about the creditor and your account. Read the Complaint carefully and compare it with your own records.

You need to respond to the lawsuit with an Answer. An Answer is your defense to the debt lawsuit. In it, you’ll explain your reasons for not paying or argue against the case’s validity.

Our partner Solo can help you respond to a debt lawsuit and protect your wages.

When you go to court, an Answer stops the judge from granting a default judgment. The judge will listen to your side before deciding on your case’s outcome.

If the creditor wins the lawsuit, they can start the wage garnishment process. Wage garnishment allows the creditor to collect some of your earnings until you pay off your debt.

Louisiana Has Strict Wage Garnishment Laws

Every state sets its own wage garnishment limits. Louisiana has some of the highest limits in the nation.

Under Louisiana law, another party can garnish your wages for the lesser of:

• 25% of your disposable weekly earnings
• The amount your income exceeds 30 times the federal minimum wage ($7.25 per hour)

Under the law, disposable earnings equal your salary minus any withholdings like federal or state taxes.

Wage garnishment will take a serious bite out of your income. Depending on your earnings and the amount you owe, you may experience months of wage garnishment. You’ll find it substantially difficult to pay for other needs like shelter and transportation.

Example of Louisiana Wage Garnishment

Morty is behind on a $2,250 debt to his bank. He stopped making payments six months ago. The bank decides to sue him for unpaid debt.

Since Morty doesn’t defend himself, the court awards the bank a default judgment. The bank uses the decision to start the wage garnishment process.

Morty earns $900 weekly. Under Louisiana law, his employer must withhold $225 from each paycheck. The garnishment will continue for ten weeks until Morty repays the entire obligation.

Morty could have avoided wage garnishment if he had settled the debt or worked with his creditors.

Avoid Wage Garnishment Through Debt Settlement

Settling your debt before going to court prevents wage garnishment. In debt settlement, you offer the creditor a fraction of the debt’s value. In exchange, they release you from the remaining balance.

Debt settlement saves you money and allows you to move on from the obligation. You won’t fear further legal action or wage garnishment.

Our partner Solo makes the debt settlement process easier. Their software helps you send and receive settlement offers until you reach an agreement. They help you document the agreement and transfer your settlement payment, keeping your financial information safe.

Stop Wage Garnishment in Louisiana

Don’t ignore notice of a pending debt lawsuit against you. If your creditor has no legitimate case, prepare to fight it. For example, if you’re a victim of identity theft, present a copy of the police report you filed.

If you owe the debt, you have two other options to avoid wage garnishment: repaying the debt or declaring bankruptcy.

Repay the Debt

Repaying the debt before your court date is the best option. When you repay the debt, the creditor stops legal action against you. They report the obligation paid in full to the credit reporting bureaus.

You no longer need to worry about the legal process. However, if you don’t have much in savings, paying the entire amount is challenging.

You need to find the money to pay your debt. If you’re short on cash, consider selling items you don’t need. Or contact a close family member for help.

Consider Bankruptcy as a Last Resort

Sometimes bankruptcy can stop creditors from winning judgments against you or garnishing your wages. However, you shouldn’t consider bankruptcy unless your financial problems are unsolvable.

Bankruptcy may wipe away your unsecured debts. But you’ll find it tough to obtain future loans or qualify for a new place to live for years.

Act Quickly to Avoid Wage Garnishment

Your creditor can’t wake up one day and decide to garnish your wages. They need to follow a legal process to gain access to your earnings. That process includes winning a debt lawsuit.

You can protect yourself from wage garnishment by repaying or settling the debt. Don’t simply bend to your creditor’s will. Instead, take action and communicate.

That way, you’ll avoid the adverse impacts of wage garnishment on your employment and monthly earnings.