A court can take money from your paycheck if you are working or order money to come out of your bank account or other money you have. This is called garnishment.
Garnishment can happen if someone sues you for money and you lose in court. If you are sued for a debt, take steps to protect yourself!
You will almost always lose if you do not reply to the case in court. If you lose the case in court, there will be a judgment against you. The winner can file papers to ask the court to “garnish” your money. They will look at your money situation and decide how much money to make you pay.
The Garnishment Judgment will order your job or bank to take money from your paycheck or bank account. The money collected this way will be more than you owe.
Louisiana law says how much of your money goes to pay the debt.
The amount depends on how much is left over in your pay after what your employer must take out for federal and state taxes, Medicare, Social Security, health insurance, and retirement.
Sometimes your employer takes money from your check for things not required by law, like optional insurance. That money is not safe from a court order taking it to pay a debt.
You earn $450 a week. If your employer takes out $120 for taxes and another $20 for optional dental insurance. ($450 - $120 = $310)
That leaves you with $310 each week. The law does not require dental insurance, so the $20 a week is not protected from garnishment. Only $330 is protected.
Then the court will look at the amount of money leftover in your pay in two ways and use the one that takes less from your paycheck.
The court must pick the smaller number after looking at the two examples above. In our example, it garnishes $82.50.
The court uses a different number for unpaid child support! The court picks half instead of a quarter of the money left after things like taxes.
Here is a link to a tool to help you figure out your garnishment amount: https://goodcalculators.com/wage-garnishment-calculator/
Most creditors cannot garnish any federal benefits, like Social Security. Only the federal government can take money out of a federal check to pay back a debt.
For more info: https://www.consumerfinance.gov/ask-cfpb/can-a-debt-collector-garnish-my-federal-benefits-en-1441/
Garnishment is different for student loans, taxes, and other things.
If you have unpaid federal student loans, the U.S. Department of Education or anyone collecting for it can only take up to 15% of your earnings after money is taken out for taxes and other things required by law. 20 U.S.C. § 1095a(a)(1).
If you have unpaid taxes, the Internal Revenue Service (IRS) can take money out of your paycheck without suing in court first. They do this by something called a “levy."
This amount of garnishment is based on your tax filings.
See here for more info: https://www.irs.gov/businesses/small-businesses-self-employed/information-about-wage-levies
There are ways that state and local government agencies can collect what you owe. Contact the agency that you owe to find out more.
The amount of the Garnishment Judgment will include the amount you owed, plus court costs, interest, and usually attorney fees from when the court made its Judgment against you.
You will also be charged:
These extra costs can be double or triple the amount of money you owed at the beginning.
The garnishment will continue until all the money owed has been paid. This can take years.
Garnishment will temporarily stop if you are no longer working for an employer. Once the person or company you owe (the creditor) finds out you are working again, they can start the garnishment again.
A bankruptcy filing will stop all garnishments right away. Bankruptcy may be able to get rid of the whole debt. Learn about bankruptcies here: https://www.uscourts.gov/services-forms/bankruptcy
Other resources can be found here:
https://www.dol.gov/general/topic/wages/garnishments
https://www.consumerfinance.gov/ask-cfpb/what-is-a-garnishment-en-1385/
For information on Louisiana State garnishments: https://revenue.louisiana.gov/Faq/Details/1293
If you own your home and are 62 or older, a reverse mortgage loan could help you with significant bills, renovation costs, and other living expenses.
If you are interested in one, please take your time to review and fully understand it. This may not work for everyone. You should also discuss this decision with your family and your heirs, usually your children.
Yes, it differs from other mortgages, but it is also similar. Like other mortgages, it allows homeowners to borrow money using their home as security for the loan. The title stays in your name, but your property will have a loan against it.
Like other mortgages, you could lose the home to foreclosure if you fail to pay for required items such as property taxes and insurance (homeowners or flood).
But unlike other mortgages, you do not make monthly mortgage payments to the lender. The loan gets repaid when you no longer live in the home, usually after your death or sooner, if you sell the property. If one spouse dies, the repayment usually occurs after the second spouse dies. But certain papers may have to be completed promptly when the first spouse dies.
Because interest and fees are charged to the loan each month, the amount owed on the home grows over time. As the amount you owe grows, the amount of equity (what you can get by selling the house) goes down. This is unlike most mortgages, where the amount owed goes down because you pay each month.
A reverse mortgage loan is NOT free money. It is a loan on your house. If you want to fully own the house, you will have to pay back the entire loan amount, including the interest that has been charged.
If your heirs want the house, they will have to pay off all that is owed, including the interest charged over time. Most reverse mortgages give them a year to pay the amount.
NOTE: Most of this information only applies to Home Equity Conversion Mortgages (HECMs), the most common type of reverse mortgage loans.
In addition to being at least 62 years old, there are a few other requirements:
Only one spouse needs to be 62 years old to qualify.
Before taking out a reverse mortgage, make sure you understand this type of loan. You may want to look at other borrowing and housing options, such as:
Other resources can be found here:
https://www.consumerfinance.gov/consumer-tools/reverse-mortgages/
https://www.aarp.org/money/credit-loans-debt/reverse_mortgages/
Are you a survivor of Hurricane Ida? Is there a problem with your help from FEMA?
The deadline has been extended to June 1, 2023 to appeal FEMA Denials!
Here are some examples of issues you can try to fix with FEMA:
You can file an appeal if you have any of these issues or if you have new evidence to show FEMA.
You can file an appeal even if the deadlines have passed on your paperwork. With the appeal, give FEMA the reason why you are late.
Your appeal must be in by June 1, 2023.**
If you need help with an appeal or other Hurricane Ida issue, please call Southeast Louisiana Legal Services at 1 (844) 244-7871
** In some cases, you can file an appeal in Federal Court after this date, but we advise caution. We recommend consulting with an attorney if you need to appeal FEMA’s decision higher.
You should check your bank statements carefully every month. Contact your bank or credit union right away if you see a problem. A problem could be money taken out without your permission or purchases you did not make.
Do not wait. Contact the fraud department of your bank or credit union right away. If you wait too long, you might be stuck with the bad charge.
You may have more rights to challenge the problem if you tell the bank or credit union within 60 days after the statement that shows the problem. If you report it later, you still may be able to get a charge removed unless your bank has a reason why notice within 60 days would have made a difference.
Your bank or credit union must look into the issue within ten business days after you tell them about the problem. They have 20 days to look into it if your account has been open for less than 30 days.
If they find a mistake, they one business day after that to fix the error. They have 3 business days after that to contact you and report their findings. If they on time, they must give you a temporary credit.
This temporary credit is for the amount of the bad charge, minus no more than $50. It stays there while the bank or credit union looks into the problem.
The bank or credit union doesn’t always have to issue a temporary credit. If you alert the bank or credit union by phone, they can make you send this information in writing. If they say to report it in writing and you don’t send the information within 10 business days, they don’t have to give you the temporary credit.
The bank or credit union has at least 45 days to resolve the problem. They get up to 90 days if the money changed hands in a foreign country, if the problem happened within 30 days of opening the account, or if the problem deals with a debit card purchase.
The bank or credit union may find that the transaction was correct. They must tell you in writing that they are taking back the money credited to your while they looked into it.
Yes, it is a good idea to contact the store and dispute the purchase.
Tell your bank or credit union right away or at least within two business days of finding out about the loss or theft. If you meet the deadline, they cannot charge you for more than $50 that gets charged after the card was stolen or lost. If you miss the deadline, you could be responsible for up to $500 of the charges.
You cannot be charged for any of the charges if you report your card as lost or stolen before it is used by someone else.
Never write your PIN on your debit card. Do not keep the PIN in your wallet. This can help protect you if your card or wallet is lost or stolen. Use a PIN that only you can remember and no one else would know.
Most credit card companies will not make you responsible for any charges after loss or theft.
Contact your bank or credit union as soon as you can and contact the merchant to cancel the service. Tell them that you are taking back authorization for these charges.
Include information to help the bank identify the charges. Tell them the name of the merchant, your account number with the merchant, and the amount(s) and date(s) of the charge(s).
You can also ask your bank to place a stop payment on a pre-authorized transaction at least 3 business days before the next payment is scheduled to be made. They may charge a fee. You should ask for the stop payment in person at the bank or in writing.
You can file a complaint with the Consumer Financial Protection Bureau (CFPB). The CFPB is a federal government consumer protection agency.
More info is here: https://www.consumerfinance.gov/complaint/process/
If your bank is licensed in Louisiana, you can also file a complaint with the state here: http://www.ofi.state.la.us/complaints.htm
Other resources: https://www.helpwithmybank.gov/help-topics/bank-accounts/index-bank-accounts.html
New rules can help people cancel federal student loans in bankruptcy. The law calls this getting a debt “discharged.” The U.S. Department of Justice and the U.S. Department of Education will help with the new rules. This applies to bankruptcy cases filed after November 17, 2022. Bankruptcy is complicated. Get a lawyer to help you if you can. You may qualify for free legal help from Southeast Louisiana Legal Services.
The law makes it hard to discharge federal student loans in bankruptcy court. A person must prove that repaying the loans creates “undue hardship.” It is hard to prove “undue hardship.”
The Justice Department will help United States Bankruptcy Courts find cases where federal student loans should be discharged.
There are multiple kinds of bankruptcy cases. You must file for bankruptcy under Chapter 7 or Chapter 13. For more about bankruptcy, see our other post on “Bankruptcy Basics.”
Find a lawyer to help you if you don’t know if you should file for bankruptcy or what kind of bankruptcy case to file. It is always best to have a lawyer if you can.
In the bankruptcy case, you or your attorney have to file for an “Adversary Proceeding” to have the bankruptcy court consider canceling your federal student loan.
The Justice Department will ask the person filing for bankruptcy (the “debtor”) to complete a form. Your answers will help the Justice Department review your federal student loan discharge claim.
The form will ask about the money situation for you and your household. Most of your income and expense information is probably already in the bankruptcy court papers.
The Justice Department and the Department of Education will review your federal student loan claims and money situation and use the “undue hardship” test mentioned above.
The government will decide whether to ask the court to discharge your student loans. Even if your situation does not seem to meet the test, the government can still ask the court to discharge the loans.
Not if you use bankruptcy court. There are no additional court costs once you have filed in U.S. Bankruptcy Court.
The new rules cover Direct Loans and other loans held by the U.S. Department of Education.
So far, the new rules do not apply to Federal Family Education Loans (FFEL) held by guarantors or to Perkins Loans still held by the school.
The new rules do NOT apply to any private student loans.
Pay attention to the news. The Department of Education may change rules for FFEL and Perkins loans. Or you can get an attorney to help you review your student loans and determine if a Chapter 7 bankruptcy is right for you.
The United States Supreme Court states that Bankruptcy is meant to provide "a new opportunity in life, unhampered by the pressure and discouragement of pre-existing debt." It is intended to give people a fresh financial start. It allows them to free themselves of current debt and to start new productive lives unhampered by past financial problems.
Filing bankruptcy cannot cure every financial problem and is not appropriate for every individual. But it may make it possible for financially distressed families to obtain relief from debt.
Individuals can either file Chapter 7 or Chapter 13
A Bankruptcy may end your having to pay much or all of your debt. This is called “discharging” the debt. You are no longer legally obligated to pay debts when they are discharged.
It may stop foreclosure proceedings on a home and allow you to catch up on payments.
It may force a creditor to accept less payment on a secured debt when the creditor has demanded payment in full.
It will immediately stop any garnishment of your wages and debt collection harassment.
It will immediately stop all current legal proceedings about whether you owe money, such as lawsuits.
A Bankruptcy might not allow you to keep things you have that are pledged in a note (such as your home for a house note or car for your car note).
It will not allow you to get out of debts owed to some government agencies, like child support, alimony, most student loans, criminal fines, and most taxes.
It will not protect co-signors when only the person who made the loan files for bankruptcy. Your co-signor still owes the full amount.
It will not end any debts obtained through fraud or intentionally injuring someone.
Under current bankruptcy law, the debtor's "current monthly income" will determine if they can file under Chapter 7 or must file under Chapter 13. This is known as the “means test.” Each state has a table used to decide this. In Louisiana, for a household of 2, the yearly income limit to file a Chapter 7 is $61,042. So, if your gross income is below this amount, you can file a Chapter 7.
But as noted above, how much you own in secured assets and other issues can also make you need a Chapter 13.
Did Road Home sue you?
Was the suit about an Elevation Grant?
Is the suit still active, or do you still owe money?
If the State of Louisiana, Office of Community Development (OCD) sued you after getting up to $30,000 from Road Home to elevate your home, there is important news.
On February 16, 2023, the State, OCD, and federal agency (HUD) announced that all lawsuits to return these funds would be dropped. Soon you or your attorney should be notified by OCD about this news.
The State will stop all collection on these Road Home grants. If a lien was placed on your property because of the suit, the State will release and remove it.
You will not get back any money you already paid. But if you are on a monthly repayment plan, you can stop making payments now.
You can learn more:
https://www.hud.gov/press/press_releases_media_advisories/hud_no_23_036
Did FEMA give you a trailer or camper after Hurricane Ida? Are you still living in a FEMA Trailer or Camper?
This post does not apply to trailers from the state of Louisiana, only trailers from FEMA.
If you are still in a FEMA trailer, you should know the following:
| FY 2022 Very Low-Income (50%) Limit (VLIL) | ||||||||
| Median Family Income | 1 Person | 2 Person | 3 Person | 4 Person | 5 Person | 6 Person | 7 Person | 8 Person |
| 72, 400 | 25,350 | 28,950 | 32,600 | 36,200 | 39,100 | 42,000 | 44,900 | 47,800 |
If you cannot afford the FEMA rent, have questions about FEMA rent, or will be put out of a FEMA trailer, call 1-844-244-7871 to see if Southeast Louisiana Legal Services can help.
Please note that if you reside in a camper provided by the State Governor’s Office of Homeland Security and Emergency Preparedness Ida Sheltering Program (NOT FEMA), there is no plan to charge you rent.
Did FEMA turn you down for not proving you own your home? FEMA can still help you even if you do not have official papers to show that you own your home, or have paperwork to prove you were living in your home near the time of the disaster.
If you do not have these papers, there are steps you can take to work with FEMA.
You can write something called “a Self-Declarative Statement.” It swears that you own the property. It explains why you do not have the paperwork FEMA asked for to show that you own your home. It must say that you are saying everything in it “under the penalty of perjury.” The words “under penalty of perjury” make it a crime for you to lie in the statement.
The Self-Declarative statement must include these things:
The following is a sample Self-Declarative Statement. It has places to check off items or fill in information for your situation:
“I have made a good faith effort, in coordination with FEMA, to obtain and provide a copy of acceptable ownership documentation. I do meet FEMA’s definition of an owner-occupant because I: [initial all that apply]
____ am the legal owner of the home,
____ pay no rent but am responsible for the payment of taxes or maintenance for the home, or
____ have a lifetime right to live in the home under a will or inheritance or ________.
I was unable to obtain this documentation because:
[provide an explanation of why other documents listed above were not available].
I hereby declare under penalty of perjury that the foregoing is true and correct.”
[sign your name and the date]
If the property was inherited, instead of the three options to check off above, include, if true:
“As the nearest relative of the deceased in the line of succession, my ownership includes all the rights and obligations of the deceased. The decedent’s name is ______, who died on _______. I hereby declare under penalty of perjury that the foregoing is true and correct.”
[Sign your name and the date]
If the property was inherited and you are not the nearest relative, include a similar substitute paragraph explaining how you came to inherit the property.
Include a signed statement from the commercial or mobile home park owner if you can.
FEMA’s policy document about this is posted at https://www.fema.gov/sites/default/files/documents/fema_iappg-policy-amendments-memo.pdf
FEMA’s own staff often forget about this 2021 policy change.
If you are attempting to establish that the property was your home at the time of the disaster (occupancy), not ownership, your statement should be something like this:
I have made a good faith effort, in coordination with FEMA, to obtain and provide a copy of acceptable occupancy documentation. I was unable to obtain this documentation [provide an explanation of why you could not get documents FEMA requests or how the documents you could get did not meet FEMA’s requirements].
I hereby declare under penalty of perjury that the foregoing is true and correct.
[Sign your name and the date]
Someone experienced in dealing with FEMA can help. If you went through Hurricane Ida, you might be able to get free legal help from Southeast Louisiana Legal Services.
To see if you qualify for free legal aid from Southeast Louisiana Legal Services, call our Disaster Legal Services Hotline at: 1-800-310-7029, or apply at our website www.slls.org/get-help/client-services.
https://www.fema.gov/sites/default/files/documents/fema_iappg-policy-amendments-memo.pdf
Everyone getting SNAP will get lower payments starting March 1, 2023. Keep reading to find out what to do to make sure you get everything you should.
Most households will lose at least $95.00 per month. Your household may lose less or more than $95.00 in March.
Many elderly people on Social Security will remember getting only $20 in SNAP before the pandemic. Most of these people will return to getting only $20, unless they can claim new expenses, mentioned below.
Most other people will get a little more than what they got in 2019 unless they have or can report changes to the agency.
Make sure DCFS has up to date information about your income and bills. During the COVID emergency, DCFS may have given you extra SNAP without getting all of the paperwork and information it usually needs.
Act now to give DCFS the right information about your income and expenses. This can help make sure you get the right amount of SNAP in the future. Do not wait. DCFS may be busy and hard to reach once SNAP lowers in March 2023.
The items listed below can make your SNAP amount go up or down. The list says what information DCFS may need for each item:
There are websites that can help you figure out how much your SNAP amount should be. Use only trustworthy sites. Here is a site you can use: http://www.nolafoodpolicy.org/snapcalculator.
DCFS will send letters in early February telling you how much you will lose in March.
You can send documents through DCFS’ online LA CAFÉ system. You can use this online system at this website: https://sspweb.ie.dcfs.la.gov/selfservice/selfserviceJSPController?id=0.1772418717047336&tab=1.
The site will ask you to log into your LA CAFÉ account. If you do not have an LA CAFÉ account, you will need to set one up. You will need to create an LA CAFÉ profile and link your SNAP case. Once you log into LA CAFÉ, the site will show you how to upload your paperwork for DCFS.
You can also send your paperwork to DCFS by mail, fax, or by visiting any DCFS office in person. Keep copies of any paperwork you send to DCFS!
DCFS’ mailing address is:
Department of Children and Family Services ES
Document Processing Center
P.O. Box 260031
Baton Rouge, LA 70826
DCFS’ fax number is 225-663-3164.
Be sure to include your Case ID number or Social Security Number (SSN) on every page so DCFS can match your paperwork to your case.
Did you live in Bayou Towers before Hurricane Ida?
Do you have things you still need to get from your unit?
Have you been told you cannot enter?
If so, we may be able to help arrange access to remove your belongings. Southeast Louisiana Legal Services is a nonprofit law firm looking to help disaster survivors. Call our Disaster Legal Services Hotline to see if you can get free legal help from Southeast Louisiana Legal Services:
1-800-310-7029
Or apply online here.
We also help with:
Southeast Louisiana Legal Services (SLLS) seeks the services of a consultant to assist in determining SLLS’s eligibility for the CARES Act Employee Retention Credit (ERC) and to assist in making an application if SLLS is determined to be eligible inclusive of a tax opinion regarding our eligibility.
SLLS provides free legal assistance to indigent and other vulnerable people who cannot afford to hire a lawyer. We protect their livelihoods, health, housing and families. Through legal representation, we are able to assure fairness for our clients as they navigate through the civil justice system. SLLS works to combat the inequities and disproportionate impacts faced by marginalized communities of color. We are the largest nonprofit civil legal services provider in Louisiana serving 50% of the state’s poverty population in twenty-two parishes across southeast Louisiana. Pre-pandemic, Louisiana had the third highest poverty rate in the United States, the second highest rate of women killed by their intimate partner, the highest rate of mass incarceration in the world disproportionately impacting marginalized communities, was consistently noted as one of the unhealthiest states, and had the second highest rate of food insecure seniors. We have been struck by ten presidentially declared natural disasters since 2005’s catastrophic Hurricane Katrina, the BP Oil Spill, and the people we serve have been particularly hard-hit by the impact of COVID-19 due to our economic reliance on the hospitality and oil and gas industries and Hurricane Ida.
Pre-pandemic, SLLS had about 100 team members on staff. We now have about 165 staff working from seven offices, staff embedded onsite with other partners such as hospitals, medical clinics, homeless shelters, domestic violence victim service centers, community colleges, and robust pro bono partnerships. We have almost 100 different funding sources though LSC funding is about 45% of our budget with another almost 30% from the Louisiana Bar Foundation.
SLLS seeks a consultant to determine the eligibility of the organization to receive the CARES Act Employee Retention Credit (ERC). Should SLLS be eligible for this payroll tax credit, the selected consultant would then do all necessary work in order to complete and submit the ERC claim. A tax opinion to support our eligibility for the ERC is also required.
SLLS seeks a consultant to conduct an evaluation of SLLS’ payroll and other internal documents spanning from March 13, 2020 to September 30, 2021 for the purpose of determining our eligibility for the CARES Act ERC. SLLS’ 941 Payroll records and other finance records are easily accessible through our online database for the specified time period. This data will be made available to the consultant upon selection. Should SLLS be eligible for the ERC, the consultant will proceed to apply and submit our tax credit claim with the support from the SLLS team as required. Additionally, SLLS requests that the selected consultant also deliver a tax opinion regarding our ERC eligibility to protect the agency.
SLLS seeks proposals in this matter that does not exceed five pages inclusive of three references. We request that all proposals include information on the applicable experience of the potential consultant especially in ERC consultation work for comparable non-profit organizations. We request a cost estimate for services with the preferable compensation for a deferred payment structure. As it may take up to 10 months for IRS approval and execution of any ERC payments, we request that all proposals offer an estimated timeline that would allow SLLS to receive the ERC by the end of 2023. Finally, SLLS requests that all candidates are prepared to provide a proposed contract for this project
Questions about this RFP may be directed to Laura Tuggle, SLLS Executive Director, at (504) 529-1000 ext. 270 or ltuggle@slls.org
Proposals are due on or before 1/28/2023. Delivery of proposals should be made electronically to Laura Tuggle at ltuggle@slls.org with “SLLS Employee Retention Credit Proposal” in the subject line, pdf preferred. If you have large file size items, please provide a file sharing link with instructions for accessing the proposed materials.
SLLS may elect to schedule a conference call with potential consultants prior to awarding a final contract. Please include contact information for scheduling purposes in the RFP.
Proposals will be evaluated upon the contractor’s responsiveness to the RFP, qualifications, demonstrated experience with similar projects, and total price quoted for all items covered by the RFP. Award of the contract resulting from the RFP will be based upon the most responsive contract that is most advantageous to SLLS in terms of cost, functionality, experience, and quality of past work.
SLLS ideally seeks a firm that understands its needs as a nonprofit and legal services organization and is invested in our missions of achieving justice and social change by fighting poverty.
SLLS reserves the right to accept or reject any and all proposals and to waive any minor discrepancies or technicalities in the proposal or specifications, when deemed to be in the best interest of SLLS. We also reserve the right to negotiate with all respondents to the RFP and reject any or all offers and discontinue this RFP process without obligation or liability to any respondent.
SLLS will not pay any costs associate with preparing proposals in response to this RFP.