Indiana Bankruptcy Blog

A wage garnishment on your paycheck can come after receiving a judgment during a lawsuit.   This wage garnishment can damage your budget severely.  In Indiana, the creditor will frequently take up to 25% of your gross income.  Will your employer know about the wage assignment?  On some level, it is very likely that your employer will learn that you have a wage garnishment.

Wage Garnishment Orders Are Sent to Your Employer

Wage garnishment orders are sent to the payroll department of your employer.  Small employers sometimes manually deduct this amount from your paycheck.  Smaller employers may be required to set this money aside and manually send these payments to the court for your creditor.  If your employer does not use a payroll service, then the staff must manually send these payments.
Most employers, however, use a payroll service.  If you work at a larger company, your company will either use a payroll service or operate an internal payroll department.  In such cases, only an initial entering of the wage garnishment information is required.  From that point, the payroll system will automatically deduct the amount and send it to the court.

Your Manager and Fellow Employees May Have No Knowledge of the Wage Garnishment

Because many companies use a payroll service, it is very likely that your fellow employees or manager may never learn about your garnishment.   Although the payroll person or department may have knowledge of the garnishment, this information may not be passed to others within the company.   If you work for a larger employer, it is much less likely that this information will be passed to other employees.

Wage Garnishments Can be Stopped by Bankruptcy

If you have excessive debts, you need to consider filing for bankruptcy.  Bankruptcy has the power to instantly stop wage garnishments.   If you are suffering from a garnishment on your check, consider contacting our office for a free consultation.