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.

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• Bankers Warned to Think Twice Before Going After Deficiency Judgments After Last Week’s News of Overestimated Number of Strategic Defaults
• 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

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