Location: TN. I had a car accident where I was at fault and very foolishly wasn’t insured at the time. The other driver did not have collision coverage on her policy and it resulted in her taking me to court and suing me for $25k for damage and costs. In court, she was given a judgement for virtually the full $25k, all I could pay up front was $5K so I agreed on a payment plan of $300 a month to pay her the rest of the money.
I began paying for a few months but there were some months where I missed payments due to my finances being very tight. Because of the missed payments, I have now been informed that she has applied to have my wages garnished at the maximum 25% allowed. This would double the amount I’ve been paying to around $600 a month and put me in really big financial trouble.
A friend says that as I did not keep to the payment plan I agreed, her application will 100% be approved and applied. He says that in this situation, the court can and will approve the 25% maximum. Of course this will substantially increase my monthly payments, and whatever financial trouble I’m going to be in because of this, will be down to me to deal with.
I can accept that a wages garnishment will be approved, but is friend correct that her application for the maximum 25% garnishment will be applied?
Comments
Possibly? We can’t guess what will be ordered. They offered you payment plan, you agreed to that plan, and didn’t keep your end of the bargain. It’s possible the court will order the maximum allowable.
It’s a formula, BTW, 25% of your weekly disposable income(so after deductions for taxes, withholding, etc.,) or weekly disposable income that remains after an amount 30x the federal minimum wage($217.50).
If you have children this changes a little bit.