Maryland Wage & Bank Garnishment Services
Powerful Solutions for Judgment Enforcement
Quick Answer: What is a Garnishment?
A garnishment is a legal court order that directs a third party (employer or bank) to withhold money from a debtor and send it to a creditor to satisfy a judgment. Maryland allows both wage garnishments (from paychecks) and bank garnishments (from accounts), with federal and state limits protecting a portion of the debtor's income.
Wage Garnishments
A wage garnishment is the procedure in which the debtor's employer is ordered by the court to send a portion of the debtor's wages to the Plaintiff in order to pay the debt.
The 5-Step Wage Garnishment Process:
- 1
File Request: A Request for Garnishment on Wages is filed with the court in the county where the judgment was entered.
- 2
Court Issues Writ: The court receives the Request and issues a Writ of Garnishment on Wages.
- 3
Serve Employer: The Writ of Garnishment on Wages is served on the employer.
- 4
Employer Response: The employer has 30 days after receipt to complete the answer to the garnishment, detailing the employee's status, wages, and existing attachments.
- 5
Withholding Begins: Once processed, the employer begins withholding the calculated garnishment amount from each paycheck.
Maryland Wage Garnishment Limits
Federal and Maryland law protect a portion of the debtor's income. The lesser of these two calculations determines the maximum garnishment amount:
| Limit Type | Calculation | Protection for Debtor |
|---|---|---|
| Federal Limit | 25% of disposable income | 75% of paycheck protected |
| Maryland Limit | 30x Maryland minimum wage | Minimum income guaranteed |
| Final Amount | Whichever calculation results in LESS being withheld | |
Note: Disposable income is calculated after mandatory deductions for taxes, Social Security, Medicare, and required retirement contributions.
Garnishee's (Employer) Responsibilities
Upon receipt of a writ of garnishment of wages, the employer must:
- Reply to the writ within 30 days of receipt, indicating on the back of the form whether the debtor is employed, the rate of pay, and any existing garnishments.
- Determine the amount of "garnishable wages" for each pay period. If there are existing garnishments in place, they are paid in full first.
- Once any existing garnishments or liens are paid in full or if there are no other garnishments, immediately begin withholding for this garnishment.
- Report and distribute withheld wages no later than 15 days after the close of the employee's last pay period in the month.
- If the debtor is terminated or stops working, notify the court and all parties including the judgment creditor.
- If the debtor is re-employed within 90 days of termination, the garnishment remains in effect and withholdings must resume.
- Penalties: If the garnishee fails to comply, the garnishee may be cited for contempt of court and assessed attorney's fees and court costs.
Bank Garnishments
A bank garnishment is the procedure in which the debtor's bank (or other financial institution) is ordered by the court to send money from the debtor's accounts to the Plaintiff in order to pay the debt.
The 6-Step Bank Garnishment Process:
- 1
File Request: A Request for Garnishment for Property is filed with the court in the county where the judgment was entered.
- 2
Court Issues Writ: The court receives the Request and issues a Writ of Garnishment.
- 3
Serve Bank: The Writ of Garnishment is served on the bank.
- 4
Bank Response: The bank has 30 days after receipt to complete a Confession of Assets, detailing the accounts held and available funds.
- 5
Request Judgment: The Plaintiff files a Request for Judgment Garnishment with the court, requesting that a judge order those funds released.
- 6
Funds Released: Once the judge rules on the Request for Judgment Garnishment, the bank sends the funds to the Plaintiff.
FAQs
Questions About Garnishments?
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