| Can my wages be garnished? That may be the | | | | decision needs to be rendered on this recurring |
| number one question that I receive at my office | | | | subject. |
| from individuals who are facing a credit card or | | | | Unfortunately, the fact that wage garnishments |
| debt collection lawsuit. | | | | cannot occur in PA does not stop unethical debt |
| In Pennsylvania, the answer is no, with conditions. | | | | collectors from making such a threat. That is the |
| Pennsylvania is one of only four states (at the | | | | basis for the telephone calls to my office. Joe |
| time of this writing) that does not allow wage | | | | Debtor has defaulted on a credit card account. His |
| garnishment for credit card/collection agency | | | | account gets transferred to a collection agency. |
| lawsuits. Let me explain the conditions now. First, | | | | The collection agency then calls Joe and demands |
| the individual must live and work in PA to be | | | | payment. When he advises that he cannot afford |
| protected. Second, and this is a big one, the | | | | to pay, the collection agency threatens a wage |
| lawsuit must have been filed in Pennsylvania as | | | | garnishment. There are two problems with such a |
| well. If you can meet all three of the listed criteria, | | | | threat. The first is that the threat cannot be |
| your wages cannot be garnished here in our state. | | | | carried out because wage garnishment is not legal |
| What is unclear is what happens if you are sued in | | | | in PA for those purposes. The second is that the |
| another state? Or if you live in PA now but | | | | debt collector has just violated the Fair Debt |
| previously lived in another state where judgment | | | | Collection Practices Act based upon his illegal |
| was entered? There is not a whole lot of case | | | | threat. If this happens to you, you will have the |
| law on interstate debt collection regarding | | | | right to file a lawsuit against the collection agency |
| Pennsylvania. There is also a bit of a conflict in the | | | | for monetary damages. |
| law here. Pennsylvania does not allow wage | | | | There are a few scenarios where wage |
| garnishment for this type of debt. However, the | | | | garnishment is legal in Pennsylvania. These are |
| federal Full Faith and Credit Clause sets forth that | | | | very limited in scope and are as follows: 1) for |
| all states must honor the judicial rulings of other | | | | judgments regarding spousal or child support; 2) |
| states. On the other hand, our state Attorney | | | | for failure to pay PHEAA student loans; 3) for |
| General, although not the final arbiter on the issue, | | | | room and board for 4 weeks or less; 4) for back |
| has set forth an opinion that this clause is | | | | rent on a residential lease; and 5) for obligations |
| contrary to Pennsylvania law on this issue and | | | | relating to a final divorce distribution. |
| that wage garnishment are not permissible. A final | | | | |