Wage Garnishments 101
October 5, 2016
It’s important to know what a wage garnishment is if you’re faced with this type of legal situation. A wage garnishment is any legal or equitable procedure in which some portion of a person’s earnings are required to be withheld by an employer for a payment of a debt. Most garnishments are court ordered, but can also include IRS or state tax collection agency levies for unpaid taxes and federal agency administrative garnishments for non-tax debts owed the federal government.
There are federal wage garnishment limits for judgment creditors. If a judgment creditor is garnishing your wages, federal law provides that it can take no more than 25 percent of your disposable income, or the amount that your income exceeds 30 times the federal minimum wage, whichever is less.
There are wage garnishment limits for student loan debts. The U.S. Department of Education, or anyone collecting on its behalf can garnish up to 15 percent of your disposable income to collect on defaulted student loans.
If a court orders that your wage be garnished to satisfy any debt, except child support or alimony, a maximum of roughly 25 percent of your net wages can be taken. For unpaid child support, however, up to 50 percent of your net wages can be garnished. Up to 60 percent can be garnished if you are not currently supporting another dependent.
Wage garnishments can negatively affect credit, reputation, and the ability to receive a loan, or open a bank account. Be sure you are fully informed, and have a strong legal advocate like George Belche on your side when dealing with your wage garnishment concerns.
George R. Belche, Attorney at Law
Lawrenceville, GA 30046