Legal Question in Credit and Debt Law in Wisconsin

Maximum Wage Garnishment in WI--Exemptions from Garnishments

If you are on the receiving end of a garnishment, you owe it to yourself to discuss your financial issues with an experienced bankruptcy attorney, since I cannot intelligently answer any question with such incomplete information. Certain portions of wages can be claimed as exempt from a garnishment during a bankruptcy type proceeding, depending upon household size, income level, and the type of creditor who is collecting. These exemptions can also be asserted in the garnishment lawsuit itself, but are waived if not properly raised in a timely fashion. The garnishment case is generally a separate lawsuit from the original collection case where the judgment was first granted, with its own case number and with separate defenses available. An insolvency proceeding, however, usually halts most types of garnishment by imposing a restraining order also known as a "stay" against the creditor pending completion of the bankruptcy. If the debt is discharged in the bankruptcy, the stay becomes permanent. Creditors such as child support payees, student loan collectors, and taxing authorities have vastly expanded collection powers over creditors who own routine consumer debts. These preferred creditors can often garnishee wages without even starting a lawsuit. For many consumer debtors, the creditor is likely to get 25% of net wages, but this percentage varies. Good luck!