The novel coronavirus (COVID-19) continues to wreak havoc across the globe. The government has restricted goods, services and travel. Moreover, people across the globe have reduced their business activity. This has greatly affected business and may negatively affect your pay. Some good news: you may reduce or eliminate your administrative wage garnishment due to Coronavirus.
The Administrative Wage Garnishment
The Claims Collection Act allows federal agencies to issue administrative orders requiring debtors’ wages to be withheld “notwithstanding any provision of state law.” The amount deducted is limited to 15% of disposable wages. However, the creditor agency may reduce the amount garnished upon request by the debtor and a showing of financial hardship. Therefore, a financial hardship due to Coronavirus may help you.
You Can Request a New Hearing If Your Pay Had Decreased
The federal agency must provide you with the opportunity for an agency review (or hearing) on the basis that the garnishment would cause financial hardship. If you demonstrate through a preponderance of the evidence that garnishment would cause financial hardship, the agency must make a downward adjustment to the garnishment amount or deny the garnishment altogether. However, if an agency has previously denied your claim of financial hardship, you may request another hearing if you can demonstrate changed circumstances, such as disability, divorce, or catastrophic illness, or, in our present climate, a change in your pay due to Coronavirus.
You must show by a preponderance of the evidence that the administrative wage garnishment causes a financial hardship. Therefore, you prove your case by producing proper documentation and legal argument that the federal agency should reduce or eliminate the garnishment.
Protect Law Group Can Help You Reduce or Eliminate Your Administrative Wage Garnishment
Protect Law Group has experience fighting administrative wage garnishments. If the Coronavirus pandemic has negatively affected your pay, our firm can help you reduce or eliminate the wage garnishment. Don’t go it alone, retain assertive legal counsel so you can keep your pay. Contact our firm today for a free initial consultation.