Having a wage garnishment order issued against an individual is one of the worst things to happen to someone. Most of the people panic upon receiving wage garnishment orders, primarily because of a limited understanding of the law. However, it is possible to claim exemptions against a wage garnishment order, and depending on the circumstances, one could even avert such orders. Let’s find out what you need to know about Nebraska wage garnishment law.
What is wage garnishment?
A wage garnishment order is issued from a court against the defendant, and it requires the defendant’s employer to withhold a specific portion of the defendant’s income and pay it to a creditor.
Understand Nebraska wage garnishment exemptions and restrictions
As a resident of Nebraska, you must understand the circumstance under which a creditor could receive a wage garnishment order from the court. First, a creditor must have a court judgment to proceed with a wage garnishment against you. However, there are some exemptions such as court-ordered child support money, overdue income taxes, delinquent student loans, and child support arrears under which a wage garnishment can be issued without a court order.
However, Nebraska law has set limitations on how much money can be garnished from your income. The law restricts net garnishments to 25% of your disposable earnings, 15% if you are the head of the household or your disposable earnings minus 30 times of the federal hourly wages for Nebraska, whichever is lower.
How you can object a wage garnishment order
It is possible to appeal against a wage garnishment order, and either reduce the total garnishment amount or even avert it altogether. The first step is to find expert legal advice, and do understand that these matters are time sensitive, so make a call immediately after receiving a court garnishment order. Start with a thorough review of the wage garnishment order and ensure that the claims set forth by the creditor are legitimate. In case of an error, you can challenge the order in the court. Secondly, you must act preemptively and discuss a debt repayment plan with your creditor upon the receipt of the first delinquency notice. It is quite likely that the creditor will welcome your initiative.
Bankruptcy is an option
If you are under acute financial stress and have little chances of surviving the order, consult a bankruptcy lawyer and seek legal advice. Do understand that there are specific financial conditions under which you can pursue the bankruptcy option, and it should always be your last resort. If you file for bankruptcy, any wage garnishment orders are automatically nulled.
When faced with a legal challenge like a wage garnishment order, make sure you get legal aid and get out of the situation unharmed or at least with minimal penalty/repayments.