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Judge denies challenge to Ally Financial wage garnishment; federal limits reviewed
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Summary
A Clayton County judge denied Crystal Hudson’s traverse of a wage garnishment in favor of Ally Financial, concluding the garnishment did not exceed federal limits after counsel reviewed pay-period information and deductions.
The court denied a traverse June 4 from Crystal Hudson challenging a wage garnishment filed by Ally Financial.
Michelle Barnes, attorney for Ally Financial, told the court the original judgment was $13,176.69 and the remaining balance was $9,788.05. Hudson said she already had another government garnishment and could not afford a second, but the court reviewed the relevant calculations. The judge explained federal garnishment limits — generally 25% of disposable income or the amount by which disposable income exceeds 30 times the federal minimum wage, whichever is less — and asked counsel to provide employer payroll details.
After reviewing the pay-period gross ($2,422.48 per pay period as listed in the filings) and Hudson’s other deductions, the court found the garnishment did not yet exceed the federal 25% threshold. "The traverse is denied in this case," Judge Tammy Long Hayward said.
The court advised Hudson that, while she faces a hardship, the legal limit had not been shown to be exceeded and suggested she contact the co-borrower to arrange repayment if possible.
