Thursday, November 24, 2005

Can Military Wages Be Garnished by a Creditor?

Members of the military may have wages garnished by creditors seeking payment for a variety of debts including commercial debts, orders for spousal support, back taxes and child support payments. Even retired members of the military are subject to these regulations. Exceptions to these rules apply only to active-duty members of the military deployed in combat areas of the world.

Deployed Military Members

    Federal law restricts most creditors from suing a member of the military who is in the field on active deployment. Creditors must wait until the service member returns home from the field to file a civil suit to obtain a wage garnishment judgment. This waiting period does not apply if the wage garnishment is for spousal or child support payments. Up to 25 percent of the service member's weekly disposable income or any weekly income exceeding 30 times the federal minimum wage is subject to garnishment -- whichever is less.

Active Duty Military

    A creditor may sue a member of the military on active, non-combat duty. Any commercial debtor may attempt to obtain a judgment for wage garnishment against the military service member in the same fashion as any other consumer. The exception being that the request for garnishment must involve submission of an income withholding order to the Defense Finance and Accounting Service. This division is a branch of the United States Department of Defense and acts as the liaison between the creditor and the military service member.

Exceptions to Garnishment Regulations

    The federal minimum for wage garnishment does not apply in the case of child support payments, A service member may have up to 50 percent of disposable weekly earnings garnished in support of a dependent child. Up to 60 percent of a service member's weekly earnings are subject to wage garnishment if the service member does not share in custody of the dependent child. These amounts may rise higher upon approval by a United States court.

Retired Military Members

    A retired member of the military may have retirement benefits garnished to pay off debts relating to back taxes, orders for child support and alimony payments. The Defense Finance and Accounting Service must receive a valid court order to begin the wage garnishment process of a retired service member's weekly benefits. Garnishment may not exceed 50 percent of disposable earnings if the retiree is supporting a family or up to 60 percent if the retiree is not supporting a family.

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