Can the Bank Garnish my Wages after Foreclosure if they are seeking a Deficiency Judgment against me?

Posted By on March 23, 2010

A question that often comes up in my practice is whether, and to what extent, creditors can garnish a client’s wages if a deficiency judgment is sought by a creditor after foreclosure.  Under §77.01, Florida Statutes, every judgment creditor has a right to a writ of garnishment.  While the power of a creditor to garnish a debtor’s wages reaches pretty broadly, there are several exemptions and limitations to protect debtors.

One of the most notable exemptions applies to the earnings of the “head of a family”.  The “head of a family” is a person who provides more than one-half of the support for a dependent.  He or she can exempt from garnishment “disposable earnings,” which include wages, salary, commission and/or bonuses, up to $750 per week.  Florida Statute §222.11.  Earnings in excess of $750 per week are exempt as well, unless the debtor has agreed to make those funds available for garnishment in writing.

Clearly, homeowners would not knowingly agree to voluntarily have their wages garnished.  There is one important exception to be aware of, and that is, money that lies dormant in a bank account for more than six months will no longer be considered “disposable income” and will then be subject to garnishment.  Therefore, it’s important to be vigilant when facing a garnishment action.

When asked by clients about how they can protect their income/assets from garnishment I always discuss with them the information above along with the benefits of using annuities, life insurance, disability income, pension funds and other techniques to protect their income/assets.

If you would like more information about this topic, please see Deficiency Judgment Counseling.  Alternatively, you may contact me, a Florida Real Estate Attorney, by email, or call me at (954) 458-8655 and I will be happy to answer your questions. I offer a free initial consultation.

You may also be interested in:

Do you have questions? Then please feel free to email at info@hallandalelaw.com or call (954) 458-8655. If you have a specific situation, please call Larry because he can’t answer specific fact questions in general comments. He’s happy to take your call.

Comments

2 Responses to “Can the Bank Garnish my Wages after Foreclosure if they are seeking a Deficiency Judgment against me?”

  1. Joseph Gerard says:

    As a victim of mortgage fraud and foreclosure [personal information edited out] …. So how can I get help

  2. Hi Joseph,
    We can’t respond to personal situations in the general blog comments, but happy to discuss your situation if you would like to contact us (see the sidebar for details).
    Thanks,
    Larry

Leave a Reply

Please note: Comment moderation is currently enabled so there will be a delay between when you post your comment and when it shows up. Patience is a virtue; there is no need to re-submit your comment.

css.php