The federal government uses the federal poverty income level guidelines to help figure out eligibility for various low-income assistance programs. The guidelines apply to most states, including Oklahoma. The state of Oklahoma allows creditors to garnish wages for delinquent debts. Depending on your situation, your wages cannot be garnished if you are below the poverty level.
Identification
The amount that constitutes "poverty level" depends on the size of your household. For example, in 2011, the poverty level for a family size of two is gross monthly income of $1,226, or $7.07 per hour; for a family size of three, the poverty level is $1,544 monthly, or $8.91 hourly.
Process
A wage garnishment is based on a certain percentage of your disposable income---your pay after legally required deductions. To garnish wages in Oklahoma, a creditor must file a lawsuit against you, win the suit by obtaining a judgment then apply for a wage garnishment with the same court. If you do not earn enough for garnishment to occur or if the garnishment will cause you financial hardship, the judge can set aside garnishment until your situation improves. If a current wage garnishment is causing financial hardship, file a hardship claim with the court.
Limits
Federal law says your employer can withhold no more than the smaller of the total by which your weekly disposable income exceeds 30 times the federal minimum hourly wage, or 25 percent of your disposable income to satisfy a wage garnishment. At the time of publication, the federal minimum hourly wage is $7.25. Oklahoma follows federal garnishment withholding procedures. If your wages are below poverty level and depending on your expenses, you likely do not earn enough for garnishment to take place.
For example, if your weekly wages after legally required deductions is $217.50 ($7.25 x 30), no amount can be garnished; but if your disposable income exceeds $217.50 and is smaller than $290 ($7.25 x 40), only the amount in excess of $217.50 can be garnished. Therefore, if you have a family size of one, and earn less than the poverty level of $908 monthly, it is unlikely that after legally required deductions, there would be anything to garnish from your wages.
Considerations
If a creditor sues you, the court notifies you of the lawsuit. If you are below the poverty level and the garnishment will cause you hardship, follow the instruction on the notification so you can present your case to the judge. The Internal Revenue Service, the state taxation agency and the U.S. Department of Education can garnish without a court order; contact these agencies directly if a wage garnishment is causing you financial hardship.
0 comments:
Post a Comment