Wage garnishment is a judgment granted to a creditor by the court for the payment of a debt. The judgment enables a creditor to deduct a fixed amount from your paycheck each pay period until you pay off the debt. Federal and state laws grant you certain rights as a garnishee to protect the majority of your income and allow you to continue meeting other financial obligations.
Restrictions on Garnishment
Federal law restricts wage garnishment to the lesser of 25 percent of your disposable income or 30 times the federal minimum wage. Disposable income is remaining salary after all federal tax, state tax and Social Security deductions. This allows you to retain the majority of your income to pay other debts and have the necessities of life, including food and shelter. The fact that a creditor is garnishing your wages doesn't mean you lose the right to put food on the table and keep a roof over your head.
Employment Rights in Garnishment
You have the right to continue your employment unabated when a creditor wins a judgment to garnish your wages. It is illegal for your employer to fire you because a single creditor is garnishing your wages. This law even applies to multiple garnishment actions relating to the same debt. An employer violating this federal law may be assessed a $1,000 fine and/or spend up to a year in prison. It is legal for your employer to terminate you for multiple garnishment orders from different creditors.
State Garnishment Laws
Each state has the right to amend federal wage garnishment laws to restrict the debts for which creditors can seek wage garnishment orders. If you live in one of these states, including Pennsylvania and Florida, creditors cannot seek wage garnishment judgments against you for unsecured debt. These regulations usually include credit cards, medical bills and personal loans. Creditors in "debtor-friendly" states can still pursue garnishment orders for back taxes, child support payments and court-ordered spousal support.
Right to Appeal Garnishment
Your income may change over the life of your wage garnishment, shifting the percentage taken from your check. You have the right to appeal to the court to alter a wage garnishment order to bring the amount taken out of your paycheck in line with federal or state regulations, whichever is the most beneficial for you as the debtor. You must provide proof of income, including pay stubs and bank account balances, to execute this alteration of a wage garnishment order.
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