wage garnishment


P

Peter Parker

My friend got defaulted on student loan and the collection agency threatened
him of wage garnishment. Is it true that if one works under contractor
status (on 1099 or corp-to-corp, for example), he/she is not subject to wage
garnishment? Thank you.
 
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C

carlorgroucho

My friend got defaulted on student loan and the collection agency threatened
him of wage garnishment. Is it true that if one works under contractor
status (on 1099 or corp-to-corp, for example), he/she is not subject to wage
garnishment? Thank you.
No.
 
B

Bill Gallagher WA3RA

Well, technically (with a caveat) yes...but the alternative is to go after
your checking and savings accounts...where the percentage is not limited. It
isn't a pretty thing.

In short, if your friend is dunned, tell him to pay.
 
D

darrenli516

A creditor can, in fact, garnish 1099 earnings. If they sue you in
court, the judge can order all bank accounts frozen, and any earnings
garnished. Of course, it may be difficult for them to find out where
one earns any money from.

Darren
 
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A

A Michigan Attorney

Peter said:
My friend got defaulted on student loan and the collection agency threatened
him of wage garnishment. Is it true that if one works under contractor
status (on 1099 or corp-to-corp, for example), he/she is not subject to wage
garnishment? Thank you.
The answer is nearly self-evident if you understand what garnishment
is. A writ of garnishment is an order from the court (or other
authorized official) to a person who owes the debtor money (or other
property) to pay it to another person (the creditor) instead of the
debtor.

It is technically true that your wages cannot be garnished if you are
an independent contractor...because you are not earning any wages. But
that doesn't mean the money you are owed by contractees cannot be
garnished. It can.
 

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