Posted By Larry 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:

• Florida Deficiency Judgment Overturned by Florida Court: Bank Loses Deficiency Because it Fails to Provide Valid Evidence of Fair Market Value
• Future of Florida Deficiency Judgments on Florida Home Mortgages – Will New Laws Limit or End Bank’s Ability to Sue for Unpaid Mortgage Balance?
• Florida Mortgage Holders: Has Anyone Explained to You About the Collection Efforts That You’ll Face When You Stop Making Your Home Mortgage Payments? Unfair Collection Activities in Florida Mortgage Defaults and Deficiencies
• Congress Fixing Foreclosure Mess: New Bill Proposes to Limit or Nix Deficiency Judgments on Homes in Proposed Fairness in Foreclosures Act
• Florida Deficiency Lawsuits Against Florida Homeowners Who Walked Away From Their Mortgages: Are You About to be Sued for the Deficiency Balance Left on Your Florida Mortgage? (Answer Likely is Yes)
• Florida Home Owners Need to Fight a Deficiency Judgment When Their is Fraud in Their Foreclosure: Deficiency Judgments Are Often Based on Foreclosure Fraud
• Can the Bank Garnish My Wages During a Florida Foreclosure?
• What is HAFA? – Can HAFA Help? – Deficiency Judgment Relief
• Prime Borrowers in Florida are most at risk for a Deficiency Judgment
• Florida Deficiency Judgments – What is Fair Market Value?
• Walking away from your Home Mortgage – Not without Consequences
• Deficiency Judgments in Florida
• Florida Deficiency Judgments – The Rest of the Story
• Estate is Liable for Mortgage Deficiency, Not Heirs
• Can the Bank Garnish my Wages after Foreclosure if they are seeking a Deficiency Judgment against me?
• Estate is Liable for Mortgage Deficiency, Not Heirs

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.

Tags: Broward Real Estate, Deficiency Judgments, Florida Real Estate, Florida Real Estate Foreclosures, Garnishment, Wage Garnishment