If you think ignoring a debtor erases your debt, please think again. Creditors may file a civil suit against you in the court of law, and if the judge rules in its favor, the creditor may come after your wages to collect on the debt. Once the court orders your employer to garnish your wages, an employer must deduct from your earnings until the debt has been paid in full.
Types
Different types of debts that you may be garnished. Student loans, child support, bank loans, car loans, credit card accounts and utility accounts are some debts that the court may order your employer garnish your wages to pay back. Your wages are also subjected to be garnished to pay any federal or state taxes you may owe.
Garnishment Amounts
The amount employers may garnish from an employee's check is limited under the Consumer Credit Protection Act (CCPA). The garnishment amount may not exceed 25 percent of an employee's wages for that pay period, or an amount of the employee's wages that is 30 times more than the federal minimum wage amount ($7.25). The CCPA does not allow employers to garnish more than the maximum amount regardless of the number of garnishments an employee has against her. Some debts such as federal and state taxes, child support and bankruptcy may require a higher garnishment amount.
According to the U.S. Department of Labor, only 50 percent of an employee's earnings may be garnished if he is supporting another child or a spouse. However, if an employee is not supporting any other person, 60 percent of her wages may be garnished for these debts. An employee that is 12 weeks or more delinquent on paying arrears (back child support); an additional 5 percent of his wages may be garnished by his employer.
Employee Rights
Having your wages garnished due to a court order is a private matter. Employers may not disclose this financial information with any non-authorized employees or individuals. Your garnishment has no bearings on your work ethic. The CCPA prevents an employer from discharging an employee because his earnings have been subjected to garnishment due to any debt, no matter how many proceedings brought or levies have been made to collect the debt.
Violations
Sanctions and penalties are in place for an employer that violates the court order. Refusing to pay the debt is a violation, as reinstating an employee that was discharged to avoid the garnishment. The court of law is able to criminally prosecute an employer, resulting in a $1,000 fine and possible imprisonment.
Prevention
Contact the debt collector and make payment arrangements before a judge has the chance to rule on the case. After the court orders your wages to be garnished, you aren't allowed to make a voluntary wage assignment. The amount turned over by an employer is out of your hands, which could have been less per pay period if you would have made the attempt to communicate with your creditor.
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