Running a business comes with its share of downsides. One of these is having to deal with clients who do not pay their debts. There is no doubt that this can be frustrating, to say the least. So, what do you do if all attempts to collect the debt have failed?
In this case, you may want to familiarize yourself with something known as a writ of garnishment. Basically, this is a court order that allows you (the creditor) to legally seize your debtor’s wages to offset unpaid debt.
Obtaining a writ of garnishment
You must sue before you can garnish your debtor’s wages. Upon filing your suit, the court will review the merits of your case to determine whether the alleged debtor owes you. Once this is established, and there are no payment arrangements in place, the court will grant a writ of garnishment judgment.
So, what happens after obtaining a writ of garnishment judgment?
You will need to serve the debtor’s employer the writ of garnishment judgment. The employer has a duty to withhold the amount the judgment is asking for. A debtor cannot talk with their employer to avoid the garnishment. However, they can directly negotiate a payment plan with you before turning to wage garnishment.
Some exceptions apply
In Florida, the head of the household is exempt from wage garnishment if they provide for more than 50% of the child support or when their weekly disposable income is $750 or less. Even if the debtor is not the household’s breadwinner, a creditor cannot garnish more than 25% of their wages. Also, wage garnishment can stop if the debtor successfully files Chapter 7 or Chapter 13 bankruptcy.
Protecting your interests
A writ of garnishment can be beneficial if you and your debtor cannot resolve a debt that is owed. Understanding how Florida’s writ of garnishment works can help you protect your rights and interests while recovering the debt owed.