Nevada garnishment and how to handle it.

Garnishment is not something which cannot happen to you: its signs must be visible for quite some time. You can see them from a distance.
– You may get notices, which you ignore and you are burying your head into sand.
– You do not open your mail,
– Ignore the phone call, or just can’t see writing on the wall.
– It is a last-ditch effort at debt collection and hits at your paycheck. Of course it hits it hard and draws your quick attention. Now, you are awake and don’t know what to do.
– However, if you move with some lightning speed, you can be helped. Time again is the essence.
– When facing credit card debt that can’t readily be paid, the best plan of action is to act early reach some sort of payment arrangement and stick to a repayment plan.
– The court intervenes when everything else fails. Now, the question is can you move fast and stop this financial bleeding?
Garnishment is a legal and judicial remedy: It is authorized by a court either after full hearing or pursuant to a default judgment against you. It should be considered a collection tool of last resort. It is mostly a judicial action authorizing the judgment creditor, or the constable to go and levy your wages. It is a direction from the constable office (In Nevada) to your payroll to start deducting a certain and defined amount from your wages in every pay period until satisfied.
Not all garnishment are court initiated:
It is true that most of the garnishment is court authorized but there are some limited exceptions to it. In every case, it is best to go to your payroll and ask them a copy of the garnishment execution papers.
Exceptions to Court Sanctioned Garnishment:
There is no need to go to court for garnishment in at least the following situations:
a. Student Loan
b. Spousal Support
c. IRS taxes.
d. Certain specified lien.
You Should Stop the Evil In the Bud:
As we stated before you can see the signs of garnishment and many cases they are predictable. In our office, we hear all kinds of stories. They levied my bank account and took all the money, or I did not know anything about legal lawsuit against me. Come on guys, you were ignoring all the letters send to you. You just did not open any judicial mail sent to your address. Well, if you changed your address, you still are bound to receive your mail. Why? Because it is your job to go to the post office and change your address. Clients are often embarrassed when faced with garnishment because now their paycheck is involved, which means their employer is aware of their financial situation. Employers are typically required to tell workers about the withheld amount. Also, you should remember that it is against the law for an employer to fire an employee whose wages are garnished, but embarrassment is noted and it does not paint a good picture especially if you are working in a financial environment.
Still No Bid Deal:
Here, the garnishment papers had been served on you and you also got a notification from your payroll. But, still something can be done.
1. Come and meet us at the Law Office of Malik W. Ahmad (702) 270-9100, make an appointment. Of course, we listen to you patiently. The Judgment Creditor is still shaky though he had reached you and can grab a part of your paycheck. But what is the guarantee that he would continuously receive the garnished amount. If you leave the job, they have to start this process all over again, and it is complicated and expensive process.
2. You can start the bankruptcy process. Of course, we are here to help you.
3. If you do not like to file bankruptcy, definitely we can settle with you creditors if you have some financial capacity or make one time settlement. Of course Law Office of Malik Ahmad had helped many debtors in this regard. Desperation cannot resolve anything: only strong determination can resolve your financial matters.
4. The only recourse for a consumer after a judgment has been rendered is to ask the court to adjust the amount of the garnishment if the reduction in pay severely impacts the consumer’s ability to support himself and any dependents.
5. If a judgment is rendered in a state where the garnishment law differs from federal law, the law requires the court to adjust the garnishment to the lesser amount.
Don’t bury your head in the sand:
No need to be ostriches and bury your head into the sand, you can be helped in very short period of time. No need to stay miserable. If you wanted to be helped, you can be helped.
Laws on garnishing
While the garnishment laws vary from state to state and bank to bank but here we are only discussing wage garnishment as applicable in the state of Nevada. Again, state and federal law regulate the amount of money that may be garnished from a consumer’s wages or bank account. In Nevada, it is 25% of the total wages. Again, it is hefty amount regardless and can upset your budget and limited income. Also, it is like a bolt from the blue for which you or your family is not ready. This garnishment can be on top of other debts and liabilities. A garnishment is a serious encroachment into your financial matters; it also leaves a very heavy derogatory impact on your credit report
No need to be scared, as help available to you. Just call the law office of Malik W. Ahmad at (702) 270-9100.

What are the limitations on deficiency judgment in Nevada?

Nevada Statute NRS 40.458 deals with Deficiency judgment as this placed many limitations and propitiation Award to judgment creditor or beneficiary of deed of trust under certain circumstances.

Financial Institution: 1. If the judgment creditor or the beneficiary of the deed of trust who applies for a deficiency judgment is a banking or other financial institution, the court may not award a deficiency judgment to the judgment creditor or the beneficiary of the deed of trust if:
Single Family Dwelling: (a) The real property is a single-family dwelling and the debtor or the grantor of the deed of trust was the owner of the real property at the time of the sale in lieu of a foreclosure sale;
Bought a Property: (b) The debtor or grantor used the amount for which the real property was secured by the mortgage or deed of trust to purchase the real property;
Continuous Occupation: (c) The debtor or grantor continuously occupied the real property as the debtor’s or grantor’s principal residence after securing the mortgage or deed of trust;
Sale to a third party for lesser amount: (d) The debtor or grantor and the banking or other financial institution entered into an agreement to sell the real property secured by the mortgage or deed of trust to a third party for an amount less than the indebtedness secured thereby; and
(e) The agreement entered into pursuant to paragraph (d):
(1) Does not state the amount of money still owed to the banking or other financial institution by the debtor or grantor or does not authorize the banking or other financial institution to recover that amount from the debtor or grantor; and
(2) Contains a conspicuous statement that has been acknowledged by the signature of the debtor or grantor which provides that the banking or other financial institution has waived its right to recover the amount owed by the debtor or grantor and which sets forth the amount of recovery that is being waived.
2. As used in this section:

What is the definition of a financial Institution?
(a) “Banking or other financial institution” means any bank, savings and loan association, savings bank, thrift company, credit union or other financial institution that is licensed, registered or otherwise authorized to do business in this State.
(b) “Sale in lieu of a foreclosure sale” means a sale of real property pursuant to an agreement between a person to whom an obligation secured by a mortgage or other lien on real property is owed and the debtor of that obligation in which the sales price of the real property is insufficient to pay the full outstanding balance of the obligation and the costs of the sale. The term includes, without limitation, a deed in lieu of foreclosure.
(Added to NRS by 2011, 2051)

What is the Limitations on the Amount of Money Judgment?

NRS 40.459 Limitations on amount of money judgment.
1. After the hearing, the court shall award a money judgment against the debtor, guarantor or surety who is personally liable for the debt. The court shall not render judgment for more than:
(a) The amount by which the amount of the indebtedness which was secured exceeds the fair market value of the property sold at the time of the sale, with interest from the date of the sale;
(b) The amount which is the difference between the amount for which the property was actually sold and the amount of the indebtedness which was secured, with interest from the date of sale; or
(c) If the person seeking the judgment acquired the right to obtain the judgment from a person who previously held that right, the amount by which the amount of the consideration paid for that right exceeds the fair market value of the property sold at the time of sale or the amount for which the property was actually sold, whichever is greater, with interest from the date of sale and reasonable costs,
 whichever is the lesser amount.
2. For the purposes of this section, the “amount of the indebtedness” does not include any amount received by, or payable to, the judgment creditor or beneficiary of the deed of trust pursuant to an insurance policy to compensate the judgment creditor or beneficiary for any losses incurred with respect to the property or the default on the debt.

How the distribution of proceeds of foreclosure sale is done in Nevada?

Section NRS 40.462 deals with the Distribution of proceeds of foreclosure sale in Nevada.
1. The proceeds of a foreclosure sale must be distributed in the following order of priority:
(a) Payment of the reasonable expenses of taking possession, maintaining, protecting and leasing the property, the costs and fees of the foreclosure sale, including reasonable trustee’s fees, applicable taxes and the cost of title insurance and, to the extent provided in the legally enforceable terms of the mortgage or lien, any advances, reasonable attorney’s fees and other legal expenses incurred by the foreclosing creditor and the person conducting the foreclosure sale.

(b) Satisfaction of the obligation being enforced by the foreclosure sale.

(c) Satisfaction of obligations secured by any junior mortgages or liens on the property, in their order of priority.

(d) Payment of the balance of the proceeds, if any, to the debtor or the debtor’s successor in interest.

 If there are conflicting claims to any portion of the proceeds, the person conducting the foreclosure sale is not required to distribute that portion of the proceeds until the validity of the conflicting claims is determined through interpleader or otherwise to the person’s satisfaction.
3. A person who claims a right to receive the proceeds of a foreclosure sale pursuant to paragraph (c) of subsection 2 must, upon the written demand of the person conducting the foreclosure sale, provide:
(a) Proof of the obligation upon which the claimant claims a right to the proceeds; and
(b) Proof of the claimant’s interest in the mortgage or lien, unless that proof appears in the official records of a county in which the property is located.
 Such a demand is effective upon personal delivery or upon mailing by registered or certified mail, return receipt requested, to the last known address of the claimant. Failure of a claimant to provide the required proof within 15 days after the effective date of the demand waives the claimant’s right to receive those proceeds.
4. As used in this section, “foreclosure sale” means the sale of real property to enforce an obligation secured by a mortgage or lien on the property, including the exercise of a trustee’s power of sale pursuant to NRS 107.080.