| Wage garnishment is when a judgment creditor | | | | amount of money you have after, such as |
| gets a court order to take a percentage of the | | | | federal and state taxes, Social Security, and |
| money earned directly from a consumer's | | | | unemployment insurance. Some usual deduction |
| earnings or tax refunds. It should be said that | | | | that are not exempt from garnishment are union |
| consumers have certain statutory rights as | | | | dues, health and life insurance contributions and |
| regards wage garnishment. These rights outline | | | | savings bond purchases, as these are considered |
| the percentage and amount that can be taken | | | | part of disposable income. |
| and, in some states, the number of garnishments. | | | | The weekly amount can not exceed the lesser |
| Also, some states limit or do not permit | | | | amount of either, 25 percent of disposable |
| garnishments. | | | | income, or the amount by which disposable |
| Most wage garnishments are initiated by court | | | | income is greater than 30 times the federal |
| order after a creditor sues and is awarded a | | | | minimum wage. This is $7.25 per hour effective |
| judgment. This judgment in turn gives the | | | | July 24, 2009. |
| judgment creditor or his agents the right to take | | | | Child support and alimony are a separate |
| percentage of the judgment debtor's personal | | | | consideration. Federal garnishment law allows up to |
| earnings to pay the judgment. The payments | | | | 50 percent of disposable earnings to be garnished |
| come directly from the place of employment and | | | | if the debtor is supporting another spouse or child, |
| are deducted the amount that is due after taxes. | | | | or up to 60 percent if not. The debtor's wages |
| If you owe a tax debt to the Internal Revenue | | | | may not be garnished if another creditor is |
| Service or other state or federal agencies, your | | | | garnishing their wages already. An exception to |
| wages may be garnished without a court order. | | | | this would be if the first garnishment takes less |
| After the judgment has been awarded the | | | | than 25 percent of the debtor's disposable |
| creditor needs to get a writ of garnishment. Once | | | | income, or the judgment creditor has a judgment |
| the writ has been given they notify to the | | | | for alimony or child support. |
| employer and debtor by either a process server | | | | Some state restrict wage garnishment and others |
| or sheriff serving the court order. This then | | | | observe the federal exemptions outlined above, if |
| notifies the debtor that a garnishment has been | | | | the state wage garnishment law differs from the |
| placed on their wages, the amount that will be | | | | federal one, the law resulting in the smaller |
| taken under the order. It also informs the | | | | garnishment must be observed. Additionally, many |
| employer of their obligations under the | | | | states allow for the continuous garnishment of |
| garnishment. | | | | wages until the judgment debtor pays off a |
| Federal law states how much can be garnished | | | | judgment, while some states limit the time for |
| from your wages. This amount is based on the | | | | garnishment. |