Have you received a letter regarding an EDD overpayment? Are you unsure what an EDD overpayment is? You are not alone! According to the EDD, an overpayment is “when you receive an unemployment, disability, or Paid Family Leave benefit you are not eligible for. It is important to repay this benefit overpayment as soon as possible to avoid collection and legal action.” Our office meets with many others in your position. They too are worried that their wages will be garnished.
The EDD is not like debt-buyers that require a lawsuit to withhold your money. The EDD is able to withhold money owed to you by the state to repay a debt. Since there is never a good time for a wage garnishment, you probably want to act quickly.Here’s what you need to know:
When Does a Wage Garnishment Happen?
A wage garnishment from a judgment occurs when an order requiring your employer to withhold a specific amount of money from your paycheck is issued by the court. That money is used to pay off the debt in small amounts. This can make paying for living expenses and other bills more difficult. It is also important to note that the wage garnishment will show on your credit report and affect your credit score.
Is the the California Employment Development Department garnishing your wages? If so, then you owe a debt to the State of California either by error or otherwise. You should know that legally, the EDD can withhold money owed to you in order to repay your debt.
So, What Can I Do?
First of all, do not ignore any summons and complaints or communications from the EDD. The common ways people can end a wage garnishment is by working directly with a creditor or by filing bankruptcy.
- See an attorney: You want someone in your corner that can verify that the EDD’s assessment is correct. An attorney can even help you through the repayment process or file for bankruptcy. This is especially helpful if you have additional debts.
- Work out an agreement: You can speak with the EDD and work out an installment agreement or an Offer in Compromise. You should also know that the EDD would rather work out a solution with you without turning to a wage garnishment.
- Ask for an exemption: This is an option if you need your earnings to support yourself or your family. However, you will be unable to get an exemption if
- You use some of your paycheck for luxuries and are not needed for support.
- The money owed is for food, clothing, housing, or medical care.
- The debt owed is for past due child support or spousal support.
- The debt owed is to a former employee for wages.
Need More Information?
Before you take any action, be sure that you are informed. At the Law Office of Daniela Romero, we believe in relationships that are based on trust. Before we work together we would like to get to know you and we would like you to get to know us. We want you to be sure that we are the perfect fit for you. Call us for a free consultation to find out the options that will work best to help eliminate your wage garnishment.