Garnishment is a powerful tool for creditors looking to collect on unpaid debts. In Ohio, creditors can seize a portion of a debtor’s wages, bank accounts, or other assets to satisfy a judgment. Understanding the rules surrounding garnishment is essential for creditors who want to use this method effectively.
Types of garnishment in Ohio
In Ohio, creditors can use different types of garnishment, primarily focused on wages and bank accounts. Wage garnishment involves deducting a portion of a debtor’s wages directly from their paycheck. Bank account garnishment allows creditors to seize funds directly from the debtor’s bank account. To initiate garnishment, creditors must first obtain a court judgment stating the amount owed.
The garnishment process in Ohio
Creditors must file a motion with the court to begin the garnishment process. This step usually happens after a judgment is issued. Once the court approves the garnishment, creditors can send a notice to the debtor’s employer or bank. The employer or bank must then withhold the specified amount until the debt is paid off. Ohio law limits how much a creditor can garnish, ensuring that debtors can still meet basic living needs.
Limitations on garnishment in Ohio
Ohio law places restrictions on how much a creditor can garnish from a debtor’s wages. Typically, creditors can garnish up to 25% of the debtor’s disposable income or the amount by which their weekly income exceeds 30 times the federal minimum wage, whichever is less. For bank accounts, Ohio law allows creditors to garnish a debtor’s funds up to the amount owed, with certain exemptions for funds needed to cover basic living expenses.
What creditors should know
Garnishment can be an effective way for creditors to collect on a judgment in Ohio, but it’s not always straightforward. Creditors must follow strict legal procedures, and limits exist on how much they can seize. To ensure success, creditors must understand these rules and follow them closely while respecting the debtor’s rights.