Falling behind on credit card payments in Maryland can lead to serious financial consequences, including wage garnishment. Creditors have the legal ability to recover unpaid balances through court-ordered deductions from your paycheck.
What wage garnishment means in Maryland
Wage garnishment refers to a legal process where a creditor collects a portion of your wages to satisfy a debt. However, creditors cannot initiate this action without first obtaining a court judgment against you. After a successful lawsuit, the creditor may request a garnishment order.
State law in Maryland limits how much of your wages can be garnished. Creditors can only collect the lesser of two amounts: your earnings exceeding 30 times the federal minimum wage or 25% of your disposable income. These limits ensure you retain a significant portion of your earnings.
How the garnishment process starts
Once a court authorizes the garnishment, your employer receives a formal order to withhold a specified amount from your wages. This amount is deducted automatically from your paycheck. Prior to the garnishment taking effect, you must receive notice. If the proposed deduction seems incorrect or causes undue hardship, you may request a hearing to dispute it.
This procedure applies to unsecured debts like credit card balances. It does not occur immediately. The legal process includes several opportunities for you to respond, and ignoring court documents can expedite the garnishment timeline.
When wage garnishment ends
Garnishment remains in effect until the debt is fully repaid or the court terminates the order. The deducted amount remains consistent unless the court issues a modification. If you switch employers, the garnishment order transfers to your new workplace. Once your obligation is satisfied, the creditor must notify both the court and your employer.
To avoid wage garnishment, it is good to address credit card debt before it reaches the legal stage. Options such as structured repayment, negotiated settlements, or bankruptcy may help prevent wage loss. Taking initiative and staying informed improves your financial security.
