Louisiana Wage Garnishment: Know Your Rights and How to Stop It

Wage garnishment in Louisiana happens when money gets taken from your paycheck to repay a debt. Creditors usually need to win a lawsuit against you first. Some government debts like taxes or child support skip that step. Louisiana law limits how much creditors can take. You have protections that keep you from losing everything. Filing bankruptcy often stops garnishment fast and can eliminate the debt entirely.

What Is Wage Garnishment?

Wage garnishment means money gets taken directly from your paycheck. Creditors use this tool to collect debts you’ve fallen behind on. Credit cards, personal loans, and other debts qualify.

Most creditors must sue you in court before garnishing wages. If they win, the court issues a judgment. You owe the debt legally at that point.

You’ll get notified about the lawsuit. If you don’t show up to court, creditors often get a default judgment. They win automatically when that happens. With judgment in hand, they can move forward with garnishing your wages.

Each state has different wage garnishment laws. Different limits exist on how much can be taken. These rules ensure you can still cover basic living expenses.

Who Can Garnish Your Wages in Louisiana?

Several types of creditors and agencies can garnish wages in Louisiana. The process depends on your debt type.

Most debt types require a court judgment first. These include:

• Creditors: Original lenders like banks, credit card companies, or personal loan providers.
• Debt collectors: Agencies hired by creditors to collect unpaid debts.
• Debt buyers: Companies that purchase old or unpaid debts from original creditors.

Some debts get treated differently under the law. These creditors don’t need court approval before garnishing wages:

• The IRS can garnish wages for unpaid federal taxes using a wage levy.
• Federal student loan servicers working with the U.S. Department of Education can garnish wages after default.
• Child support orders often include automatic wage withholding without separate court judgment.

The following sections explain how garnishment works for debts requiring court judgment.

How Does Wage Garnishment Work in Louisiana?

Louisiana wage garnishment usually follows these steps:

• The creditor sues you in court. They file a lawsuit for unpaid debt and notify you.
• The court issues a judgment. If the creditor wins or you don’t appear, the judge issues a money judgment.
• The creditor files a garnishment petition. In Louisiana, courts call this a writ of fieri facias.
• The court signs the garnishment order and interrogatories. These documents ask your employer about your wages and ability to pay.
• The creditor serves your employer. Your employer receives the signed order and interrogatories.
• Your employer has 15 days to respond. They must answer interrogatories under oath and return them to court.
• The court issues a Garnishment Judgment. Your employer must start taking money from your paycheck.
• Your wages are garnished. Your employer withholds a portion each paycheck until the debt, interest, and court costs are paid.

Can You Challenge a Wage Garnishment in Louisiana?

Understanding the difference between the judgment and garnishment itself helps. The court judgment comes first. This legal decision says you owe the debt.

If the creditor sues you and wins, the court issues this judgment. If you didn’t respond to the lawsuit, the judge may issue a default judgment. Default judgments are very hard to undo.

You can file an appeal or ask the court to reconsider. But appeals have strict deadlines in Louisiana. Act quickly. Many people talk to a lawyer right away to explore options.

Once the judgment is final, the creditor can request wage garnishment. You usually can’t challenge how much is being taken unless there’s been a mistake. Louisiana law allows you to ask the court to reopen the case. You must present new information that affects whether garnishment should continue.

Courts call this kind of request a motion. It’s usually only successful in specific situations. For example, if something has changed that makes the garnishment unfair or incorrect.

How Much of Your Paycheck Can Be Taken?

Louisiana has clear limits on wage garnishment amounts. These limits apply to each paycheck. They ensure you still have money for basic living expenses.

Louisiana generally follows federal law for garnishment amounts. A creditor can take whichever of the following is less from each paycheck:

• 25% of your disposable earnings, or
• The amount your disposable earnings exceed 30 times the federal minimum wage (currently $7.25 per hour, or $217.50 per week)

Disposable earnings are what’s left after legally required deductions. Income taxes and Social Security get taken out first. Voluntary deductions like retirement contributions or health insurance don’t count when calculating disposable income.

The other 75% of your disposable earnings is protected from garnishment. Louisiana also protects certain income types entirely:

• Social Security benefits
• Unemployment compensation
• Workers’ compensation
• Certain pensions and retirement benefits

If a creditor adds interest or court fees, they must calculate correctly. For judicial interest, they’re required to use Louisiana’s official Judicial Interest Calculator.

Remember, this formula applies to consumer debts. Special rules exist for federal back taxes, unpaid child support, or defaulted student loans.

How to Stop a Garnishment in Louisiana

If your wages are being garnished, it can feel hopeless. But you have options. Bankruptcy is often the most effective choice, especially if you’re struggling with other debts too.

You can also stop garnishment by paying the debt in full.

File for Bankruptcy

Filing bankruptcy is often the fastest way to stop wage garnishment. As soon as you file, the court issues an automatic stay. Most wage garnishments stop immediately, even if they’ve already started.

Bankruptcy doesn’t just pause the garnishment. It can erase the underlying debt completely. The garnishment won’t come back later.

Chapter 7 is the most common type of personal bankruptcy. It can wipe out many unsecured debts. Credit cards, medical bills, and personal loans often lead to wage garnishment. Most people who qualify for Chapter 7 can erase debt in a few months. You move forward without wage garnishment or collection calls.

Need help determining if bankruptcy is right for you? Speak with a bankruptcy attorney for free to explore your options.

Pay the Debt in Full

You can stop wage garnishment by paying off the full amount. This can happen in one lump sum or through ongoing payments. Money gets taken from your paycheck until it’s paid.

Some people try negotiating a payment plan with the creditor. If the creditor agrees, they may cancel the garnishment order.

For many people, coming up with that kind of money isn’t realistic. This is especially true if you’re already behind on bills.

Resources for People Facing Wage Garnishment in Louisiana

Several legal aid organizations in Louisiana provide legal services to qualifying individuals. Visit the Louisiana Bar Association’s website to view active legal aid organizations in Louisiana.

If you’d like self-help materials, you can contact the court that issued the wage garnishment.