As a legal expert with a focus on employment and wage garnishment, I can provide you with a detailed explanation regarding the process and timeline for a company to garnish wages.

Wage garnishment is a legal procedure where a portion of an employee's earnings is withheld and paid directly to a creditor to satisfy a debt. This can occur due to various reasons, such as unpaid child support, student loans, or court-ordered judgments. The process of wage garnishment can be complex and varies depending on the jurisdiction and the nature of the debt.

First Step: Legal Action

The process typically begins when an unsecured creditor decides to take legal action against the debtor. As you mentioned, this usually happens when the debt becomes significantly delinquent, often around six months or more. The creditor must file a lawsuit in court and serve the debtor with a notice of the lawsuit. The debtor then has the opportunity to respond to the lawsuit.

Second Step: Judgment

If the debtor does not respond or loses the case, the court will issue a judgment in favor of the creditor. This judgment is a legal decision that the debtor owes the creditor a certain amount of money. The judgment is the basis for wage garnishment.

Third Step: Wage Garnishment Order

After obtaining a judgment, the creditor must then request a wage garnishment order from the court. This order is a legal document that instructs the debtor's employer to withhold a certain percentage of the debtor's wages and send it directly to the creditor.

**Fourth Step: Service of the Garnishment Order**

The creditor is responsible for serving the garnishment order on the debtor's employer. This must be done in accordance with the court's rules and procedures. Once the employer receives the order, they are legally obligated to comply with it.

Fifth Step: Employer's Compliance

The employer must start withholding the specified amount from the debtor's wages as soon as possible after receiving the garnishment order. The amount that can be garnished varies by state and type of debt. For example, federal law limits the amount that can be garnished for private debts to 25% of the debtor's disposable earnings, while child support garnishments can be higher.

Sixth Step: Payment to Creditor

The withheld wages are then paid directly to the creditor, usually on a regular basis, such as weekly or monthly, depending on the debtor's pay schedule.

Timeline

The timeline for wage garnishment can vary widely. It can take several months from the time the creditor decides to take legal action until the point where the employer starts withholding wages. This includes the time to file the lawsuit, serve the debtor, go through the court process, obtain the judgment, request the garnishment order, and serve the order on the employer.

Several factors can affect the timeline, including the complexity of the case, the debtor's response, the court's schedule, and the efficiency of the creditor and their legal counsel. It's also important to note that there are protections in place for debtors, such as the Consumer Credit Protection Act, which limits the amount that can be garnished and requires that the debtor be given notice and an opportunity to contest the garnishment.

In conclusion, the process of wage garnishment is a multi-step legal procedure that can take several months to initiate and execute. It involves a lawsuit, a court judgment, a garnishment order, and compliance by the employer. The timeline is influenced by various factors and can differ significantly from one case to another.

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In order to garnish, an unsecured creditor (one for which there is no collateral securing the debt, i.e. credit cards, personal loans, medical bills) must first sue the debtor. Typically this does not occur until the debt is around six months delinquent.read more >>