About Wage Garnishment

Wage garnishment is usually a last resort by a creditor to get money that is owed to them after all other collection efforts have been exhausted. It can have a lasting effect on your personal life, your career and your credit. Although you are protected to some degree, it can still be devastating.

Function

Wage garnishment is a court order delivered to the place of employment of the person who is having their wages garnished. The payroll department will incorporate the garnishment into the employee's payroll. A set amount, also court ordered, will be deducted from the employee's wages on a weekly, biweekly or monthly schedule, depending on how often the employee is paid.

Time Frame

Wages will continue to be garnished until the court-ordered amount is paid in full. However, the effect of having your wages garnished will stay on your credit history for seven years.

Features

Once your employer is presented with the court order for garnishing wages, it then becomes the responsibility of the employer to make sure the designated amount is deducted from each paycheck. It also becomes her responsibility to forward the amount that was deducted to the proper place.

Misconceptions

The court order can only take a certain percentage of your disposable earnings, which are earnings that are left after legally required deductions such as taxes. They can also not garnish wages that come from Social Security, retirement benefits or public assistance benefits, unless it is for child or spousal support.

Effects

The effects of wage garnishment are very damaging to your credit. Also, while you are legally protected from getting fired for one wage garnishment, you can be fired for having more than one. While only a certain percent of your income can be garnished, some wage garnishments, such as an IRS garnishment, can take a rather large percentage.

Warning

If the court-ordered garnishment is for back child or spousal support, the percentage that can be taken from your paycheck is usually higher. Also, there are certain funds that are not exempt from garnishment if it is for back support such as veteran benefits, military retirement, worker's compensation programs, unemployment and Social Security.