How to Calculate Payment From Garnished Wages

If you neglect to pay a debt that you owe, your creditor may opt to file a lawsuit against you. If the judge rules against you or you do not show up at the hearing, your creditor will be awarded a judgment. In some states creditors that are awarded a judgment may request that the court order your wages to be garnished and remitted to the creditor as payment. If this occurs, however, there are federal limits on what types of income can be garnished and the amount that can be taken from each of your paychecks.

Instructions

1

Evaluate the type of income you receive. If you do not hold traditional employment and your income instead comes from Social Security, unemployment or a state retirement pension, your income can only be garnished if the creditor to whom you owe a debt is the government. Private creditors to which you owe unsecured debts, such as credit card debts, cannot garnish payments made to you by the government.

2

Calculate your average weekly income after taxes have been withdrawn. This leaves you with what the court refers to as your "disposable earnings."

3

Multiply the current federal minimum wage by 30. As of December 2009, the federal minimum wage is $7.25 an hour. Multiplied by 30, this results an amount of $217.50.

4

Calculate 25 percent of your weekly disposable earnings. Remember, most pay periods are biweekly, so you may not be able to simply use the amount you are paid each pay period. Garnishment calculations are based on the amount you are paid each week.

5

Compare the multiplied minimum wage calculation in Step 3 to the percentage of your disposable earnings calculated in Step 4. Your wage garnishment will be limited to the lesser of these two amounts.