Understanding Garnishments in Missouri: A Legal Overview

Garnishment is a legal process where a creditor can collect a debt by seizing a portion of the debtor’s wages, bank accounts, or other assets. In Missouri, garnishment is governed by both state and federal law, with the Missouri Revised Statutes outlining specific procedures, limitations, and exemptions. This article provides a detailed look at how garnishment works in Missouri, including the types of garnishments, the rights of debtors and creditors, and important legal protections.

Types of Garnishments in Missouri

In Missouri, there are two primary types of garnishments that creditors may seek:

1. Wage Garnishment (Earnings Garnishment): This type of garnishment allows a creditor to take a portion of the debtor’s wages to satisfy a debt. A creditor typically garnishes wages after obtaining a court judgment against the debtor. Missouri law limits the amount that can be garnished from wages, protecting a portion of the debtor’s income.
2. Non-Wage Garnishment (Bank Account or Property Garnishment): A creditor may also seek to garnish a debtor’s bank account or other property, such as personal assets or real estate. Non-wage garnishments involve seizing funds directly from the debtor’s bank accounts or placing liens on property.

Legal Process for Garnishment in Missouri

In order to garnish a debtor’s wages or assets, a creditor must first follow several legal steps:

1. Obtain a Judgment: Before a creditor can garnish wages or property, they must file a lawsuit and obtain a judgment from the court. The creditor must prove that the debtor owes the debt, and the court will issue a judgment for the amount owed if successful.
2. Filing for Garnishment: Once the judgment is obtained, the creditor can file for garnishment. In Missouri, this requires filing a “Request for Garnishment” with the court that issued the judgment. The request must specify the debtor’s employer (for wage garnishment) or the bank (for non-wage garnishment).
3. Serving the Garnishee: The creditor must serve the garnishment order on the garnishee (the employer or bank) and the debtor. The garnishee is then legally required to withhold or seize the specified amount from the debtor’s wages or accounts and send it to the creditor.

Missouri Garnishment Limits

Missouri law sets limits on how much of a debtor’s wages can be garnished. These limits are designed to prevent creditors from taking too much of a debtor’s income, ensuring the debtor retains enough money for basic living expenses.

1. Wage Garnishment Limits: Under Missouri law and federal law (the Consumer Credit Protection Act), the amount of wages that can be garnished is limited to the lesser of:
   • 25% of the debtor’s disposable earnings (earnings after taxes and other legally required deductions), or
   • The amount by which disposable earnings exceed 30 times the federal minimum wage.

For example, if the federal minimum wage is $7.25 per hour, the debtor must retain at least 30 times that amount (approximately $217.50 per week). These limits protect low-income individuals from excessive garnishments.

2. Exceptions to Wage Garnishment Limits: Certain types of debts are subject to different rules, including:
   • Child Support and Alimony: Up to 50% or 60% of wages may be garnished for child support or alimony, depending on whether the debtor is supporting another spouse or child.
   • Federal Taxes: The IRS can garnish wages without a court order, and there are no set limits under Missouri law on how much the IRS can garnish.

Exemptions and Protections for Debtors

Missouri law also provides several exemptions that protect certain assets from garnishment, even after a judgment is obtained:

1. Homestead Exemption: Missouri provides a homestead exemption that protects a portion of the equity in a debtor’s primary residence from seizure. This protection is limited to $15,000 of equity, but increases to $5,000 for mobile homes.
2. Personal Property Exemptions: Debtors are entitled to exemptions for certain personal property, such as household items, clothing, tools of the trade, and up to $3,000 in value for a motor vehicle.
3. Public Benefits: Social Security benefits, unemployment compensation, and other public benefits are generally exempt from garnishment.
4. Bank Account Exemptions: Up to $1,250 in a debtor’s bank account is protected from garnishment, with some additional protections for funds that come from exempt sources (such as Social Security benefits).

Debtor Rights and Remedies

Debtors in Missouri have certain rights and remedies to protect themselves from unlawful or excessive garnishments. If a debtor believes a garnishment is improper, they can challenge it by filing a motion with the court that issued the garnishment order. Common defenses include:

1. Exempt Income: If the debtor’s income or assets are exempt from garnishment, they can file a motion to quash the garnishment.
2. Improper Notice: If the debtor was not properly notified of the lawsuit or garnishment, they may challenge the validity of the garnishment.
3. Wrong Amount: If the garnishment exceeds the legal limits or if the creditor is attempting to garnish an incorrect amount, the debtor can request that the court modify the garnishment order.

Conclusion

Garnishments in Missouri are a powerful tool for creditors but come with strict legal limitations and protections for debtors. The process begins with a court judgment and follows a legal framework that ensures fairness for both parties. Understanding the garnishment rules, limits, and exemptions is crucial for both creditors seeking to recover debts and debtors protecting their assets.

Legal advice from a qualified attorney may be essential for those facing garnishment proceedings, as each case involves unique facts and circumstances.

Todd Miller is a monthly contributor and regularly writes and speaks on various legal topics including bankruptcy, estate planning, probate, and elder law. He formed the Law Office of Todd Miller, LLC, 1305 Southwest Blvd., Ste. A, Jefferson City, Missouri in 2006. He has been awarded the Substantial Contributor Attorney Award by the Missouri Bar and ranked as one of the “Top Attorneys in Missouri” by The Legal Network. Mr. Miller earned his juris doctorate degree from the University of Missouri School of Law in 1999 and graduated with honors from Lincoln University in 1991. You may find him at www.toddmillerlaw.com (573) 634-2838 or on Facebook, Instagram, and Twitter.