Q: Wage garnishment over “loan” between family w/ no contract, only told pay when/if you can. Help please
Hi, I have a question regarding money given between family. My grandpa gave me around 3k to help with our back rent. There was no contract or anything signed between us. He just said, “pay it back when/if you can”. Now he passed away recently & his daughter is threatening to garnish my husband's paychecks AND my grandma's social security if we don't give her our upcoming tax returns. Can she do that?? We're counting on that money to put towards bills & get our vehicle fixed. We live paycheck to paycheck & even then it's not enough, we don't even have enough for food, we use food pantries and help from friends/family w/ food.
A:
A loan does not entitle a person to garnish your wages. They would have to obtain a judgment against you, and garnish wages based upon the judgment obtained against you.
Even if a judgment is obtained and garnishment is attempted, social security, disability, and retirement benefits are exempt from collections.
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