What Are The Laws For Wage Garnishment.
Federal And State Wage Garnishment Laws
Consumers, creditors and collectors can use State and Federal garnishment laws to start, stop and avoid wage garnishment actions. Wage garnishment (except for student loans) is only possible after collectors and creditors obtain a court order judgment for this action.
Wage garnishment laws include bank accounts, attaching wages and student loans in default. The law does not describe how to stop wage garnishment. The garnishment action, otherwise known, as “administrative wage garnishment” can be up to 25 percent of your income.
The best way to prevent wage garnishment action is to be pro-active when dealing with your creditors and debt collectors. Or better yet, plan ahead and be ready to make your monthly payments when they become due.
Each state has their own individual set of rules and laws. It is necessary if you are delinquent with your loan payments and feel a wage garnishment could be placed upon you to investigate the laws immediately in the state in which you live. That way you will know exactly what you are up against.
A Breakdown Of Wage Garnishment Laws
A summary of the laws will be presented here. To explain and write out each law it its entirety would encompass a small booklet or magazine. Hopefully, this will explain the main points and from here you can investigate the Internet, library, court journals, etc. for exact points.
The maximum for allowable of garnishment earnings of an individual for any work week may not exceed 25 per cent earnings for that week, or the amount by which disposable earnings for that week exceed thirty times the Federal minimum hourly wage, which ever is less.
No employer may discharge any employee due to the fact that his earnings have been subjected to garnishment for any indebtedness. And whoever willfully does violate (or fire) the employee because of his wages being garnished shall be fined not more than $1,000 or imprisoned not more than one year.
Specific restrictions apply to court orders for those involved with child support or alimony. The garnishment law allows up to 50 percent of a worker’s earnings to be garnished for this purposes or up to 60 percent if the worker is not.
Generally, Social Security benefits are exempt from garnishment or other legal process or from any bankruptcy law. The exceptions are: delinquent Federal taxes and child support payment and alimony obligation.
A garnishment order for the collection of a defaulted student loan can also be served. The limit for normal garnishment of this type is 25% and applies to the debt for the outstanding student loan. Under the formula a maximum for $60.00 (25%) of $240.00) would be the amount.
The Borrower Does Have Rights And Responsibilities
The debtor may object to garnishment on a number of grounds and also has the right of a hearing process. The borrowers may also object on basis such as grounds as the validity of the claim, financial hardship, and undue hardship on the family, incorrect information, death, disability, forgery and several other agreements.
The laws of wage garnishment and fair debt collection are wide and complex. We have only touched on a few basic concepts, rules and laws. For further information, check with government agencies, or the Internet which will direct you in many extensive areas.
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I am not able to make the payment that ceditors are asking for on a student loan and have told them I want to pay them, but I can probably pay only half of what they are asking for a month and they still will not work with me. Now they are wanting to garnish my wages. What rights do I have in this situation.
IF YOU HAVE SEVERAL PAYDAY LOANS YOU CAN NOT AFFFORD TO PAYBACK AT THE REQUESTED AMOUNT.CAN YOUR WAGES STILL BE GARNISHED IF YOU PAY SOMETHING ON THE LOAN EACH MONTH
i have a car loan I have been paying on for 2 years and I can no lo nger make the payments and told them to come and get the car …I even gave them the amount of my bills per month verses my wages …I am 61 years old with a disabled child and just cannot pay it any more …they said they were going to garnish my wages and I was wondering how many times they can do this and the most they can take at a time…I live in ohio…thank you for any information you ca n give me
If I was given a court ordered paper saying that my wages were going to be garnished for a past credit card bill and the amount given on that court ordered paper was [for example] $3,250.00 and 20% was taken from my check every two weeks for over a year until that amount was paid off, THEN, a month later I recieve a paper saying that I still owe $845.00 for interest and cost for that same bill that I finished paying off, can they start regarnishing my wages again for something that should have been added in the first billing not in a later statement saying another words “oops ” they forgot to add it and at there fault now my wages have to once again be garnished? I’ve been told by many people that they CANNOT do this to me! Can they?
@Tony,
The laws regarding wage garnishment differ radically from state to state, but as far as I’m aware there are no states that allow more than one garnishment concurrently. One judgement has to be satisfied before another can begin garnishing your wages.
@Paige,
I’m afraid that I’m not familiar enough with the tax laws in that area to answer your question. You may try asking the IRS directly.
@Juan,
I suggest that you take a look at this site. It will explain your rights as a debtor. http://www.pslegal.org/Publications/OweMoney/Index.htm
@Decker,
Again, it differs from state to state, but in nearly every case, a creditor will not seek wage garnishment if something is being paid on the debt, even if its not the full amount.
@Darlene,
It is rare for a creditor to seek a judgement for wage garnishment on an item that can be repossessed, and even rarer for such a judgement to be granted. It is much more likely that this is simply a scare tactic to try to get you to continue paying on it and they will eventually tire of it, and take back your vehicle.
@Alberto,
You should have gotten a court document that stated the entire amount of the garnishment. If the amount of the garnishment as listed on the court document was satisfied, then the creditor would have to obtain a separate court order for any further garnishment. If they begin garnishing your wages, simply take your check stubs to the court to prove that you have already satisfied the debt.
Hope that helped all of you.
-Maggie