WAGE GARNISHMENT IN NEBRASKA
How much of your wages may a creditor garnish in Nebraska? How many garnishments may be placed on a paycheck at any one time? These are two common questions I receive on a weekly basis.
There are limits to how much any one creditor may garnish under Nebraska and Federal law. Nebraska Statute 25-1558 provides that the maximum wage garnishment shall not exceed the lesser of the following amounts:
- Twenty-five percent of his or her disposable earnings for that week;
- The amount by which his or her disposable earnings for that week exceed thirty times the federal minimum hourly wage prescribed by 29 U.S.C. 206(a)(1) in effect at the time earnings are payable; or
- Fifteen percent of his or her disposable earnings for that week, if the individual is a head of a family.
The above limits do not apply to child support garnishments or federal or state tax garnishments. In other words, you may be garnished for a creditor judgment plus child support plus a tax garnishment at the same time. However, you may only be garnished for one civil court judgment at a time.
A private creditor may not garnish wages until they obtain a judgment. To obtain a judgment the creditor must file a lawsuit, serve you with a copy of the lawsuit, and give you an opportunity to file a written answer to the lawsuit. Typically, a person has 30 days after receiving the lawsuit to respond in writing to the Court. Verbal responses are not sufficient--it must be in writing and it must be filed in the Court. Failure to file a written response to a lawsuit will entitle the creditor to a Default Judgment. Once a judgment is entered the creditor may begin garnishment actions.
These limits apply to wage garnishments only and not to garnishments of bank accounts or self-employment earnings. Creditors may garnish 100% of a bank account or self-employment earnings unless another exemption statute applies.
The filing of a bankruptcy petition immediately protects a person's wages, bank accounts, and other assets. Under certain circumstances, wages and other garnishments occurring in the prior 90 days may be returned if the proper action is taken by the bankruptcy attorney, although most bankruptcy attorneys fail to do this.
Comments (26)
Read through and enter the discussion by using the form at the endmegan h - September 6, 2011 1:01 PM
Can a person be garnished on wages and a bank account at the same time and if the bank account is shared with some body you are not married to?
Sam Turco - September 6, 2011 1:19 PM
Megan,
You ask a great question, and your situation is very common. The answer is that a creditor may garnish both the paycheck and the bank account unless you file a written request for a "garnishment hearing" with the Clerk of the Court. You should have received a court form to fill out to request a hearing, but if you did not receive the form then you can go to the Clerk of the Court's office and fill out a request.
I'm guessing that the money in your bank account is the net amount from your paycheck after your employer deducted taxes, insurance, etc. So, if you don't object to the garnishment the creditor will have garnished 100% of the paycheck. You will need to bring your bank statements and paycheck stubs to the court hearing to prove that your bank account held only the net paycheck proceeds and that the creditor is getting more than 25% of the paycheck. This process is complicated if the bank account balance includes other deposits from the other person on the account or other sources. The judge will have to figure out what amount of the account is subject to the garnishment, and sometimes that is very difficult to determine. It goes without saying that you should immediately cease using this account until the judgment is satisfied or discharged in bankruptcy.
Sam Turco
Mary C - February 29, 2012 3:01 PM
I am bringing a small claims action against a Nebraska resident. I live in another state and will be traveling to Nebraska for the court appearance.
If I win a judgement, can I request a garnishment order immediately following the judgement? What do I need to do to try and get the money owed me ??
Sam Turco - February 29, 2012 3:57 PM
Mary,
Yes, if you win a judgment in the Nebraska Small Claims Court you may start the garnishment proceeding. There are garnishment forms available in the Clerk of the Court that you need to fill out and send to the place you will garnish. I believe there is a $5 court fee to pay and you must send a copy of the Garnishment Summons to the judgment debtor (the other party to the lawsuit). The clerk of the court usually will explain how to complete these forms.
Heidi C - March 23, 2012 3:29 PM
My ex spouse is court ordered to pay 50% of all medical, dental and insurance costs. After 11 years of him not paying, I am thinking of taking him to small claims in $3,000 portions of the bills. If I do this can he file bankruptcy against the unpaid child support medical bills that I have already paid? If he still doesn't pay, can I go back for contempt of court?
Tom C. - April 6, 2012 9:15 PM
I won a small claims judgment against a retired firefighter from Omaha, Nebraska. I was told by a lawyer representing the city of Omaha that according to the city charter I could not garnish his pension check from the city. I filed a Garnishment Affidavit and Praecipe for Summons in Garnishment [in aid of execution]: State of Nebraska Form No CC3:6 Rev. 1/94 25-1056 Required, choosing it to be serviced by the sheriff with the garnishee: Omaha Firefighters Credit Union. They responded that I could garnish none of his checking or savings because it was from his city of Omaha retirement.
I wonder how they would know this all came from his retirement and that none of it came from his wages when he was an active firefighter, how they would know that none of it came from rental income he received from a large house, how they would know that none of it came from his selling the rental property, how they would know that none of it came from his selling his lake property, and so on.
The defendant refuses to speak with me about if or when he will pay me. I filed the small claims action on behalf of my mother, who is currently in a dementia ward, acting as her Durable POA. I also have one more court date against him on April 13, 2012.
Is it true that I have no garnishment recourse?
I understand that if I do not, I will be able to put a lien on his house, charging him interest. I know how I can put on the lien if needed. But, I do not know how to start charging him interest. How would I do this? If I win judgement also on this second case, could I combine the judgments in one lien?
I have a plethora of information that documents this defendants underhanded dealings with my mother, even including his forging her signature on the Nebraska Motor Vehicle Sales Form 6.
Debbie Forsberg - April 17, 2012 3:28 PM
We received two garnishment orders on one of our employees. We began deducting wages for the garnishment we received first. Then, we received an Order of Continuing Lien for the second garnishment and have not received one for the first garnishment. Should we stop deducting for the first garnishment and start deducting for the second one because they filed for an Order of Continuing Lien first?
Sam Turco - April 19, 2012 8:04 PM
There can only be one wage garnishment in place (in addition to a Child Support garnishment) on an employee's paycheck. The best option is to call the Clerk of the County Court and ask them which garnishment order to honor. Generally, the first creditor to garnish is the one to pay, but if they let the continuing wage garnishment order expire another creditor may fall into first place. Call the Clerk of the Court to make sure you pay the correct order.
KPB - April 20, 2012 2:49 AM
My employer received a wage garnishment letter from the court filed by a collection agency. I have requested a "garnishment hearing" with the court which is after I get paid. I am paid monthly. Is there a way to get the garnishment cancelled before I get paid, and what other recourse is available after a default ruling has been issued and garnishment proceedings begun?
Sam Turco - April 20, 2012 10:01 AM
There are two parts to the garnishment proceeding in Nebraska. First, the creditor must send a "Garnishment Summons" to your employer. Your employer must fill out a one-page questionnaire to verify your employment and to tell the creditor how much you earn. Once that report is returned to the creditor and court, the collection agency attorney will then file a proposed Order of Garnishment with the Court. The Court normally rubber stamps these orders and then sends the official garnishment order to your employer. That is when the garnishment becomes effective. Wage garnishements are "continuing liens," meaning they continue from paycheck to paycheck until the jugment is paid in full.
By filing the "Request for Hearing" you have delayed this process. (Congratulations.) Now this matter will be scheduled for a court hearing to determine if they can garnish your wages and how much they can garnish. You should receive notice of the garnishment hearing date from the court very soon. In all reality, they can garnish your paycheck once a judgment is obtained, so the only real question is whether they can garnish 15% of your gross pay (if you are the head of a family) or 25% (if you are not the head of a family).
How do you stop a wage garnishment? I know of only two ways: 1) file bankruptcy, or 2) pay or settle the debt.
James Chinn - June 21, 2012 2:37 PM
Is there a limit to the amount my pay can be garnished for a debt if I am already paying a little more than 25% in child support. If there is a limit who do I contact as my child support does not come out of my paycheck but is deducted from my bank account each month.
Thanks for the reply.
Sam Turco - June 29, 2012 12:13 PM
Yes, there is a limit to the garnishment. The maximum creditors may garnish is the lesser of 25% of your "disposable earnings" OR the amount by which your disposable earnings exceeds $217.50 per week (30 times the federal minimum wage,which is currently $7.25 per hour). Disposable earninings is the amount left after deducting all legally required deductions for federal, state and local taxes.
Example: If you had gross earnings of $500 per week and if $100 were deducted for state and federal taxes, your disposable earnings are $400. So, a creditor could garnish 25% of the disposable earnings which is $100 ($400 x 25%) OR the amount of disposable earnings over $217.50 ($182.50), whichever is lesser. So, in this example the creditor may garnish $100.
Example 2: Let's say you have gross weekly earnings of $300 and take home $270 after taxes are withheld. The maximum garnishment in this case is $52.50. (the lesser of 25% of disposable wages or the amount of disposable wages in execess of $217.50).
Bob G. - August 1, 2012 1:29 PM
Our company received a garnishment order for one of our employees. We paid the garnishment and sent it to the court at the end of April. We have never received a release of garnishment order for that case. Today we received a letter from the attorneys representing the company that filed the garnishment. stating that the employee still owed a small amount of money. I am assuming this is interest of some sort. Are we under any legal duty to withhold that amount from the employee since the letter did not come from the courts? Thanks in advance.
Sam Turco - August 1, 2012 3:49 PM
Bob,
The real question here is whether the Court considers there to be an unpaid balance. A wage garnishment is a "continuing lien." That means that the paycheck should continue to be garnished until the garnishment order ends. I would recommend that you call the Clerk of the Court to determine how much is unpaid and to verify if your company is still under an obligation to garnish the paycheck. Most garnishment orders are good for 90 days and they may be extended for another 60 days.
Diane Heddinger - August 8, 2012 3:37 PM
I have an employee that has two garnishments on Credit Managements and a garnishment for National Student Loans. I have been paying on the Student Loan but I was wondering if it is over the say $435.00 biweekly amount they can take home, can I take out on the first garnishment I received after the student loan and make sure she takes home the $435.00 biweekly pay. I know I can't take out for both the garnishments at the same time, but I wasn't for sure about the Student loan.and a garnishment. Thanks for your help in this matter.
Troy - December 4, 2012 3:07 PM
Once a judgement is satisfied, how does the employer get notified to discontinue the garnishment. Does the debtor have to take any action beyond paying off the judgement to get the garnishment order cancelled?
Part two -- what happens with funds the employer withholds if the judgement has already been satisfied?
Sam Turco - December 10, 2012 9:22 AM
Once a judgment is satisfied the creditor should file a Release of Garnishment in the county court and then send a copy to the employer. In addition, the creditor should file a Satisfaction of Judgment in the county court so that the case can be closed. If you feel that a judgment has been fully paid, I would recommend calling the attorney handling the garnishment and request a release of the wage garnishment and that a Satisfaction of Judgment be filed. In addition, if the judgment was reported on a credit report, the debtor should contact the credit bureaus to request that the judgment be reported as paid.
Lee Lamson - December 18, 2012 11:37 AM
I co-signed for a loan for a person I guess I felt sorry for so she could get a car to
get to work and transport her daughter. Guess I am the fool. She defaulted on the
last loan payment (auto-pay) which of course I became liable for in the amount of
$172.00. How do I garnish her paycheck for this amount and into the future? We
are both Nebraska residents. I want payment for the amount she owes........
Thank you.
Sam Turco - December 18, 2012 11:51 AM
You need to file a lawsuit against your friend in Small Claims Court and obtain a judgment for the $172 owed. Then, after you obtain a judgment you will be able to start the garnishment proceeding.
Debra - January 10, 2013 11:36 AM
If you have a garnishment in place and move out of state can they come after you once you get employed in another state?
Sam Turco - January 10, 2013 1:19 PM
If you work for the same company in a new state, the garnishment might continue. However, if you are working for a new employer in a different state, the Nebraska garnishment will cease. The judgment creditor would have to register the judgment in the new state and locate your new employer before the garnishment can resume, so more likely than not the garnishment will stop. Judgments from one state can be transferred to other states, but this does not seem to occur very often. The Nebraska judgment, however, will remain on your credit report until paid.
Jenny C - April 26, 2013 6:14 PM
I have a current judgement against my ex spouse...He is to pay me a certain amount each and every month until our joint debt was retired. At the time, I was able to obtain the judgment and since he did not pay, I did garnish his wages.
Now that I am coming to the end of the amount which was $25,000, I have found that at the time, since we did not figure in the interest of those joint bills, I am going to be "short" about $3,500.
My question is: Once the 25,000 has been fulfilled, do I need to file a new garnishment request, or do I file a continuance of such?
Any advice you can give me would be appreciated.
Angie - May 10, 2013 2:41 AM
My boyfriend rec'd a "summons & order of garnishment in aid of execution". I have a few questions here. First it says he has to answer the attached Interrogatories & file them with them with in court in days of services of summons issued. Penalities maybe be imposed in the event of willful falsification. And that he is required by law to do so. So what exactly does that mean? And why if they are just going to garnish him anyways? And secondly even thou he is not head of household or receive federal funds or benefits can he still fight this just to have a fair amount payment to be paid to creditor? He already has alot of childsupport coming out of his pay check thru garnishment & brings home very little income when it's all said & done. Surely not enough to survive on. So any insight you can help with would be greatly appriciated.
Thank you
Angie
Randy D - May 13, 2013 7:16 AM
My brother had a wage garnishment placed against him. The bill in dispute was for healthcare. He has documentation showing the bill was paid from his Flexible Savings Account directly to the healthcare provider. I have no idea why he let this affair get this far along. How can the garnishment be stopped? Can the garnished monies be recovered?
Sam Turco - May 13, 2013 8:52 AM
My guess is that the collection company obtained a default judgment against your brother because he did not respond in writing to the court Summons. If a person fails to file a written reply to a lawsuit with the clerk of the court within 30 days, the collection company is given Default Judgment. Once a judgment is obtained they may begin the wage garnishment.
So, to stop the garnishment your brother must file a motion with the court to set aside the default judgment. if your brother cannot afford an attorney, he should Contact Legal Aid Society of Nebraska (402-348-1069) or he should go to the clerk of the court and request a hearing to set aside the judgment. Until the judgment is set aside they will continue to garnish.
I would also advise that he contact the attorney for the collection company and present them with proof that the debt was paid.
Sam Turco - May 13, 2013 9:25 AM
Angie,
Your boyfriend's payroll department will fill out the garnishment papwork and send it to the court. They must send him a copy, but he is not required to fill out the paperwork. The garnishment laws do take into account his child support payments.