Can I be garnished if I am self-employed?

Submitted by Anonymous (not verified) on Thu, 07/02/2009 - 06:02

I defaulted on some student loans few years back. I have received a notice from the CA that if I don't pay within 10 days they will file a law suit against me. I am self-employed and do not have a fixed salary. My question is that how can they garnish if I do not receive pay checks every month.

Thanks for any info

Hi lopez,

Garnishment laws vary from state to state. But if you are self-employed, the collection agency can get a court order to garnish your bank account. They may also place a lien on your home or property. When you want to sell your property, which has a lien attached to it, you will have to pay off the judgment in full.

Thu, 07/02/2009 - 06:34 Permalink
ryan897 (not verified)

Hi lopez,

In order to avoid garnishment, you can work out a deal with the collection agency. You can request the CA to settle the debts. I think the CA will agree, if you offer a settlement amount that you can pay at once.

Thu, 07/02/2009 - 06:39 Permalink
moresand (not verified)

I tried working a deal to pay the loan, but the bank did not agree. so they are garnishing my wages. Now i am self employed, dont have a house, property or money in the bank. so how are they going to garnish any money?

Thu, 05/20/2010 - 19:11 Permalink

Hi moresand,

As you are self employed the lender will not be able to garnish your wages. However, they can garnish your bank account. Whenever any money will get credited to your account, your bank will withdraw the money and deposit it with the lender.



Fri, 05/21/2010 - 09:39 Permalink
John Adkins (not verified)

In response to AArons answer above "As you are self employed the lender will not be able to garnish your wages. However...."
I have the same question as Moresand above except a follow up question. If I am self employed, have no property and have a business account, cant I simply try to cash any business checks that mighty come in or deposit it and immedately withdraw and keep a low balance to avoid any large levies?. Anyway, wont the creditor/collector have to renew a writ each time, allowing me to avoid much withdrawal and significantly extending the time period. Keep in mind I am 64 years old.

Fri, 03/11/2011 - 21:44 Permalink
social1 (not verified)

I am an independent contractor. A few years ago I defaulted on my student loan. Things did not work out for me in the field I went to college for. Now I would like to know if they can garnish my income. I am an independent contractor, and receive payments from the public via cash or credit card for purchased services I provide.

Thu, 10/06/2011 - 01:16 Permalink
MrDudeguy (not verified)

If you don't make any money, only your "corporation" does, the corporation is a separate "person". This kind "person" can own your home, pay your bills, anything you want, as benefits of your employment instead of payment in the form of salary. As long as you aren't using this legal entity solely to avoid paying your debtors (which should be evident by any business income this "person" makes and the fact that it's a legitimate business), there's not alot creditors can do. The established "person" is a legal entity and privy to all of the rights any US citizen would have.

Fri, 12/07/2012 - 03:22 Permalink
mr p (not verified)

a judgement was awarded to a creditor against me personally
i have a business and its a llc. the business was served with a writ of garnishment and summons. i dont take a pay check but we do however take draws to pay our personal expences, company is not doing well right now so we have not been taking any draws for awahile how should i answer on the writ for income?

Tue, 02/12/2013 - 15:36 Permalink
crorkz matz (not verified)

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Tue, 08/05/2014 - 08:53 Permalink
Nik Nak (not verified)

My ex husband works for a company as an owner operator truck driver. I filed an order to have his wages garnished from that employer, though he is an owner operator a year ago and it went fine. Then I got notice my ex canceled his contract with the company under his name but now works for them under his new business name , Inc. Can I re file the order putting his company's name and his name. Are they considered the same people.

Sun, 08/23/2015 - 00:54 Permalink
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Fri, 12/15/2017 - 21:23 Permalink