What are my options if my wages are garnished or there is a lien on my property?

If your wages are being garnished or there is a lien on your bank account or property, you may be able to request an exemption for money or property that you need to live on (such as your car or house). An exemption means that the portion of your wages or property that you need in order to support yourself and your family CANNOT be taken.[2207]

    For more information about requesting an exemption from wage garnishment, talk to your employer. You should have received a notice regarding your wage garnishment (called an “Earnings Withholding Order,” form WG-002) and instructions on how to request an exemption (Judicial Council form WG-003).[2208] These forms are available in Appendix C , PG. 688, and Appendix D , PG. 691. They are also available online at http://www.courts.ca.gov/documents/wg002.pdf and http://www.courts.ca.gov/documents/wg003.pdf.
    To request an exemption from a property lien, you will need to file a Claim of Exemption (Judicial Council form EJ-160).[2209] This form is provided in Appendix E , PG. 694 and is also available online at http://www.courts.ca.gov/documents/ej160.pdf. For a list of the types of property that you can request an exemption for see Appendix F , PG. 696 (Judicial Council form EJ-155), or go to http://www.courts.ca.gov/documents/ej155.pdf.
    If your wages are being garnished by the CA Franchise Tax Board (FTB), you can claim a financial hardship and ask them to reduce the amount taken out of each paycheck.[2210] Call the FTB at (916) 845-4064 to ask for assistance. (Note: The Franchise Tax Board CANNOT change the total amount of debt you owe, only the amount being taken from each paycheck.)[2211]

Even if you don’t have enough money to pay off your debts, it’s important to show that you are making an effort and want to pay them off! The court and judge will often work with you if you can show that you are trying to take responsibility for your debt to the best of your ability. You can ask the judge to help you set up an installment plan, or request that he or she waive (forgive) some of fines and fees. Many courts will let you do community service to work off your debt—or you can even opt to spend time in jail to pay off or reduce what you owe.[2212]

If your debt has been sent to a private collection agency or the FTB, you can ask that agency to help you set up a payment plan. If the FTB is garnishing your wages, you can also ask them to change the amount that is being taken out of your paycheck (but they CANNOT change the total amount of debt you owe.) The FTB can be very helpful—so don’t be afraid to contact them for assistance!

The bottom line: Court-ordered debt can be a scary thing to deal with. But even if you can’t pay now, there are other things you can do to improve your situation. DON’T IGNORE YOUR DEBT or it will only get worse!

  1. 2207

    Cal. Code of Civ. Proc. §§ 704.010–.210, 706.050–.051. ↑

  2. 2208

    Cal. Code of Civ. Proc. § 706.122; see also The Judicial Council of California, Paying the Judgment, http://www.courts.ca.gov/1319.htm. ↑

  3. 2209

    Cal. Code of Civ. Proc. § 703.520; see also The Judicial Council of California, Paying the Judgment, http://www.courts.ca.gov/1319.htm. ↑

  4. 2210

    Cal. Franchise Tax Board, Court–Ordered Debt (COD)—Frequently Asked Questions (Debtor), https://www.ftb.ca.gov/online/Court_Ordered_Debt/faq_debtor.shtml#q3; see also Cal. Franchise Tax Board, Nontax Debt Collections, https://www.ftb.ca.gov/aboutFTB/ND_2011_12.pdf (rev’d Aug. 1, 2012). ↑

  5. 2211

    Cal. Franchise Tax Board, Court–Ordered Debt (COD)—Frequently Asked Questions (Debtor), https://www.ftb.ca.gov/online/Court_Ordered_Debt/faq_debtor.shtml#q3; see also Cal. Franchise Tax Board, Nontax Debt Collections, https://www.ftb.ca.gov/aboutFTB/ND_2011_12.pdf (rev’d Aug. 1, 2012). ↑

  6. 2212

    Cal. Penal Code § 1205. ↑