16 May 23

How Do I Stop an Administrative Wage Garnishment?

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Protect Your Livelihood and Future: Stop Administrative Wage Garnishment

In these unprecedented times, the COVID-19 pandemic has dramatically impacted not only our health but also our financial stability. With the average individual debt of Americans soaring to $92,727 (according to a recent CNBC news report), countless individuals are finding themselves in the mire of a financial crisis. As a result, creditors are turning to administrative wage garnishments to recover long-overdue payments. In this article, we will delve into the intricacies of administrative wage garnishment and how you can challenge it if you are a debtor, small business owner, or employer.

Understanding Administrative Wage Garnishment

Administrative wage garnishment is a legal procedure utilized by the federal government to withhold and apply a portion of your earnings to settle outstanding debts. In contrast to private creditors, who must file a lawsuit or obtain a judgment before initiating the process of wage garnishment, the government bypasses these steps. If you have defaulted on your payments and are currently employed, you could be targeted with an administrative wage garnishment.

When Can You Challenge The Order?

You can halt or contest an administrative wage garnishment if:

  • The debt is unenforceable against you
  • The specified debt amount is incorrect
  • Implementing the order would cause financial hardship

If you have been employed for less than twelve months after losing your previous job through no fault of your own, exemptions may apply. Additionally, you must be given notice regarding any proposed action concerning withholding wages, allowing you the opportunity for a hearing before the issuance of any order mandating the withholding.

To avert having your wages withheld through this process, request a hearing within the specified notice period when receiving notification about potential actions being taken against you under AWG regulations (31 CFR Part 285). However, if this timeframe lapses without a response from either party (employee/employer), employers will continue withholding amounts until further decision-making transpires between the involved parties.

What To Do If Debt Amount Specified Is Incorrect

Depending on your situation, you may be facing the following predicaments:

  • You do not owe the debt at all
  • The specified debt amount is incorrect

In the first scenario, you must present compelling evidence demonstrating why you do not owe any money. Depending on your circumstances, you may have cleared the debt, been released from it, or an administrative error could be at fault.

In the second case, you may have to substantiate that part of the amount was already paid, or collateral was sold to decrease the outstanding balance. Regardless, it is imperative to provide all necessary records, receipts, and other evidence illustrating how government errors led to the point where wage garnishment became necessary.

When Does Financial Hardship Come Into Play?

If implementing wage garnishment would result in financial hardship for a debtor, they can contest the order by submitting a personal financial statement in support of their appeal. Essentially, they must demonstrate an inability to cover basic needs if AWG were implemented – including daily essentials such as food, utilities, housing, transportation, and medical care.

It is important to note that private school expenses and housing expenses exceeding average rent cannot be used as a standard daily expense when making such claims against AWG regulations (31 CFR Part 285).

Why Hire Us?

An administrative wage garnishment can inflict significant financial hardship on individuals and businesses alike. If you are grappling with the burden of an SBA loan exceeding $30k or navigating the complexities of an administrative wage garnishment as a personal guarantor or federal debtor, our dedicated team of proficient attorneys can offer the steadfast legal assistance and representation required in these trying times! Reach out to us today and allow us to help safeguard your finances, livelihood, and future!

What We Can Do For You?

Our expertise spans across the resolution of SBA & Treasury debt issues nationwide through a variety of methods, including but not limited to:

  • Millions of dollars resolved via offer-in-compromise and negotiated repayment agreements without clients filing bankruptcy or facing home foreclosure
  • Millions defended against through AWG hearings, treasury offset program resolution, cross-servicing disputes, private collection agency representations, compromise offers, and negotiated repayment agreements
  • Our attorneys are authorized by the agency practice act to represent federal debtors nationwide before the SBA Office of Hearings and Appeals and the Treasury Department Bureau Fiscal Service

In conclusion, if you have found yourself in the grip of an administrative wage garnishment or are desperately seeking a lifeline to stop it, do not hesitate to contact us today for a professional evaluation of your unique situation. Let us join forces and protect your finances, livelihood, and future!

How Do I Stop an Administrative Wage Garnishment?

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