For those associations that have successfully obtained judgments against delinquent owners, one of the best tools out there to collect on the judgment is the garnishment. Associations can garnish bank accounts, wages, and in some cases, other assets to get paid.

House Bill 1189 (HB-1189) is a wage garnishment reform bill that seeks to lower the overall amount that may be garnished by a creditor with respect to an individual’s earnings. Currently, wage garnishments are limited to 25% of an individual’s weekly earnings or the amount by which the debtor’s earnings for the week exceed 30 times the minimum wage, whichever is less. HB-1189 proposes to lower these amounts to 15% of the debtor’s weekly earnings and 50 times the minimum wage.

In addition to the above, HB-1189 provides an opportunity for the debtor to seek an even larger exemption from the above garnishment amounts, or eliminate the garnishment altogether, if such individual can show the remaining amounts (after garnishment) are insufficient to pay living expenses. On a final note, the bill further provides some very specific language to be included in the garnishment notice.

How might this bill impact associations, if passed? Will this increase judicial foreclosures for associations? Tell us your thoughts.

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