Being in debt is stressful. Being wage attached, or garnished, for your debt is even worse. There are federal guidelines, laws and rules in place for wage garnishments by debt collection agencies. Types of debts and the amount of the garnishment are limited. Each state may have additional laws, but they have to abide by the federal statutes.
Percentage
The maximum garnishment is 25 percent of your disposable earnings. The only exceptions are for court-ordered payments and state or federal taxes.
Monetary Exceptions
The 25 percent of your disposable earnings cannot leave you with less than thirty times the federal minimum hourly wage.
Termination
Your employer cannot terminate your employment because they received a garnishment request for your debt. Violations are subject to large fines and/or imprisonment.
Social Security
Social security payments are normally exempt from garnishment. The exemptions are only for federal taxes and in some cases delinquent child support payments.
Employer Compensation
Most states allow your employer to retain a certain percentage of the garnishment from your paycheck for bookkeeping compensation. This amount is in excess to your garnishment amount.
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