Is it legal for someone to be garnished twice for the same thing? (2024)

FAQs

Is it legal for someone to be garnished twice for the same thing? ›

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.)

A Judgment Creditor (the IRS for unpaid taxes, or any other creditor) can garnish your wages from different sources at the same time, and/or execute on their Judgment in any other ways, like from your bank accounts. What creditors can't do is get paid twice for the same debt.

For most types of debts, including credit card bills and medical expenses, creditors can garnish up to 25% of your disposable income (what's left after taxes and other mandatory deductions), or the amount by which your weekly income exceeds 30 times the federal minimum wage, whichever is less.

In Indiana, the laws are designed to mainly track federal wage garnishment limits. If more than one creditor is garnishing your wages at the same time, then the maximum amount that can be garnished by all of your creditors combined is 25 percent.

One person generally cannot be garnished more than once at a time (or alternatively, the total amount garnished cannot exceed the statutory maximum). If your debts have gotten to the point of garnishment, you should set up a free consultation with a bankruptcy attorney right away.

Large companies often assign a single debt to more than one debt collector. Since debt collectors also report accounts to the credit bureaus, their competing reports can make it look like you have multiple outstanding debts, even though they all relate to the same credit.

It's not uncommon for two companies to be trying to collect it at one time, but you need to be very careful to only pay the company who are currently tasked with collecting the debt.

You can stop a garnishment by: Paying off the debt in full. Filing an objection to the garnishment with the court if you have legal basis, such debt was a result of fraud or identity theft. Filing for court protection and debt resolution through Chapter 13 or Chapter 7 bankruptcy.

Can a debt collector access my bank account? Yes, a debt collector can take money that you owe them directly from your bank account, but they have to win a lawsuit first. This is known as garnishing. The debt collector would warn you before they begin a lawsuit.

What you can do. There are several options for stopping a wage garnishment. One, you can quit your job. Your creditor won't get your money, but neither will you.

Which states prohibit bank garnishment? ›

What States Prohibit Bank Garnishment? Bank garnishment is legal in all 50 states. However, four states prohibit wage garnishment for consumer debts. According to Debt.org, those states are Texas, South Carolina, Pennsylvania, and North Carolina.

MULTIPLE EARNINGS GARNISHMENTS

If the debtor's earnings are already being garnished when you receive this earnings garnishment, place this earnings garnishment into effect the pay period after the last of any prior earnings garnishments terminates.

The creditor should notify your employer when the debt is repaid and you should start receiving your regular paycheck again. If this does not happen and money is still being withheld from your paycheck, then you should make sure the creditor notifies the employer.

You may have to file a motion with the Court that issued the judgment. You can be garnished for the same debt multiple times until it is paid in full. If it was paid in full, seek counsel.

Title III also limits the amount of earnings that may be garnished pursuant to court orders for child support or alimony. The garnishment law allows up to 50% of a worker's disposable earnings to be garnished for these purposes if the worker is supporting another spouse or child, or up to 60% if the worker is not.

Keep in mind that multiple garnishments could be served at the same time, but the total amount garnished can't exceed the limit set by federal law (in most cases, 25% of your disposable income).

It's generally not permissible for a creditor to obtain two judgments against a debtor for the same debt.

If everything relates to the same product then he can't sue twice.

A bank levy is a one-time action, but the creditor or collector can return to court to request it again.