Defense Finance and Accounting Service > Garnishment > civgarnishment (2024)

FAQs

How do you negotiate a garnishment settlement? ›

Call the creditor, or the creditor's lawyer, and offer to make a settlement. You could tell them that you agree to pay the balance owing, and you will provide them with post dated cheques to repay the debt.

Usually, DFAS debt occurs due to specific situations. According to the out-of-service debt DFAS webpage, overpayments are a potential reason for the debts. For instance, if your military or retirement pay from the DoD exceeds the amount you were or are eligible to receive, that creates a debt.

Under federal law the maximum amount a creditor can receive is 25 percent of disposable earnings, unless state or local law provides a lower maximum amount. The applicable federal statute is the Consumer Credit Protection Act and is found at 15 U.S.C.

Start by lowballing, and try to work toward a middle ground. If you know you can only pay 50% of your original debt, try offering around 30%. Avoid agreeing to pay an amount you can't afford.

Wages may not be garnished by more than one creditor at a time unless the primary garnishment does not take the full 25% allowed by law. (These garnishment restrictions do not apply to certain bankruptcy court orders or debts due for federal or state taxes.)

It takes approximately 60 days from the date DFAS receives your claim to process your information. If you submitted a claim more than 60 days ago, and want to check the status, visit AskDFAS.

It's not just your basic pay that can be withheld, garnishments can also include almost all of your "pay" such as special pay, incentive pay, etc. Your allowances such as Basic Allowance for Housing and Basic Allowance for Subsistence cannot be garnished.

What states prohibit garnishment? ›

Some states, such as Pennsylvania, North Carolina, South Carolina and Texas, do not allow wage garnishment except for tax, child support, student loan, or court-ordered fines. Other states normally limit the percentage of wage that can be garnished.

To pursue a debt settlement for stopping wage garnishment, you'll need to contact your creditor before the court makes its judgment. A debt settlement is an agreement made with your creditor that you will make a lump sum payment to satisfy the debt.

Some of these factors include the time since your last payment, the total amount owed, whether your account is with the original creditor or a collections agency, and how much you can afford to pay. Typically, you should offer 60% or less of your debt amount to kick off negotiations.