Definition
When people have their wages garnished, this means that a portion of the money that they are earning from their employers is automatically deducted and goes to pay off outstanding debts that they have accrued. In most cases this is done as a result of a court order, where the person whose wages are being garnished has been taken to court and ordered to undergo this process to pay off her debts. In certain cases (owing federal taxes as an example), a person could potentially have their wages garnished without ever having gone to court.
Specifics
Having wages garnished can negatively affect a person long after his debts are paid, as wage garnishment is reported on credit reports. This can affect a person's ability to apply for credit cards, open bank accounts, and even in some cases apply for jobs or housing. It is a law in many states that no more than 25 percent of a person's wages can be taken to repay debts.
Debts
Having your wages garnished can, in theory, happen for any kind of debt, but there are several kinds of debt that most commonly lead to this. Repaying outstanding child support, for example, can lead to having your wages garnished. Also repaying student loans one has defaulted on, repaying back taxes, and repaying any outstanding court costs are all types of debt that could lead to having your wages garnished.
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