Garnishment and financial hardship laws vary from state to state. Each state can create exemptions for certain debtors and set garnishment limits. However, no state can pass garnishment laws that allow creditors to garnish a larger percentage of disposable income than Title III of the federal Consumer Credit Protection Act. Florida has its own wage garnishment laws and it is the only state with a head-of-household exemption.
Wage Garnishment Overview
Title III of the Consumer Credit Protection Act is a federal statute governing wage garnishment limits. Title III sets the wage garnishment limit at 25 percent of a debtor's disposable income per paycheck or "the amount by which disposable earnings are greater than 30 times the federal minimum hourly wage." Florida's wage garnishment statute sets the same limit as the federal statute. However, Florida allows qualified creditors to claim an exemption for head of household.
Florida Wage Garnishment
In Florida, if a debtor qualifies as head of household, creditors are not allowed to garnish her wages. If a debtor who qualifies as head of household nets in excess of $500 per week, creditors still cannot garnish her wages without written consent. To qualify as head of household in Florida, a debtor must provide over half of all support for a dependent such as a parent, a spouse or a child. It is not required that a dependent live with the head of household. Even where a debtor does not qualify as head of household, creditors still cannot garnish more than 25 percent of disposable earnings in a given pay period.
Disposable Earnings
In Florida, creditors are allowed to take either 25 percent of a debtor's disposable income or the amount by which disposable income exceeds 30 times the federal minimum wage, whichever is less. As of July 2009, the federal minimum wage was $7.25 an hour. Disposable income includes all wages --- in a given pay period --- that remain after mandatory deductions such as Social Security, unemployment and taxes.
Additional Asset Protection
You cannot lose your home to a creditor in Florida, unless that creditor holds a mortgage on your home. Additionally, Florida protects debtors who live in an area that is incorporated from forced sales. Under Florida's constitution, debtors can claim up to $1,000 in personal-property exemptions. This means that up to $1,000 worth of personal property cannot be reached by creditors; personal property includes jewelry, furniture and clothing.
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