Can a Creditor Continue Garnishing Wages After Debt is Paid?

Question from Mosi, Can a Creditor Continue Garnishing Wages After Debt is Paid?

Answer from AI:

If you believe that your debt has been paid in full but your wages are still being garnished, it’s important to understand your rights and the legal processes involved. Here’s a general explanation of what you can do to address this situation.

Understanding Wage Garnishment

Wage garnishment is a legal procedure where a portion of your earnings is withheld by your employer to pay off a debt, typically as a result of a court order. In Arizona, as in other states, creditors can garnish wages to collect on a judgment.

Steps to Take if You Believe the Debt is Paid

If you think your debt has been fully paid but garnishment continues, you should:

1. Review Your Payment Records: Gather all documentation of payments made towards the debt, including wage garnishments, direct payments, and any other forms of payment.
2. Contact the Creditor or Attorney: Reach out to the creditor or their attorney to request a detailed accounting of the debt. This will help you understand how much has been paid and if there are any discrepancies.
3. File a Motion to Stop Garnishment: If you believe the garnishment is improper, you can file a motion with the court that issued the original judgment. This motion should include evidence that the debt has been paid in full.
4. Consult with a Legal Professional: Given the complexity of garnishment laws and the potential for significant financial impact, it’s advisable to consult with an attorney who specializes in debt collection or consumer rights.

Legal Framework and Resources

In Arizona, wage garnishment laws are governed by both state and federal regulations. Key points include:

• Arizona Revised Statutes (ARS) § 12-1598: This statute outlines the procedures for wage garnishment in Arizona.
• Federal Consumer Credit Protection Act (CCPA): Limits the amount that can be garnished from your wages to 25% of your disposable earnings or the amount by which your weekly earnings exceed 30 times the federal minimum wage, whichever is less.

For more detailed information, you can refer to the [Arizona Revised Statutes](https://www.azleg.gov/arsDetail/?title=12) and the [Consumer Credit Protection Act](https://www.dol.gov/agencies/whd/fact-sheets/30-cppa).

Recovering Overpaid Amounts

If you have overpaid the debt, you may be able to recover the excess amount. Steps to consider include:

1. Request a Refund: Contact the creditor or their attorney to request a refund of any overpaid amounts.
2. File a Claim in Court: If the creditor refuses to refund the overpaid amount, you may need to file a claim in small claims court or another appropriate court.

Additional Considerations

Given your age and health issues, it’s crucial to address this matter promptly. You may also want to explore options for protecting your retirement income from garnishment. Social Security benefits, for example, are generally protected from garnishment for most types of debt.

Consult a Legal Professional

While this information provides a general overview, it’s important to seek personalized legal advice. An attorney can help you navigate the specific details of your case and ensure your rights are protected. You can find legal assistance through resources like the [Arizona Bar Association](https://azbar.org/for-the-public/find-a-lawyer/).

Remember, each case is unique, and a legal professional can provide guidance tailored to your specific situation.