Thursday, September 4, 2008

Pennsylvania Garnishment Rules

Pennsylvania wage-garnishment laws are strict and clear. Debtors are protected under Pennsylvania state law given that they live and work within the state, and the judgment in question was filed within the state. Being informed on the law is the first step to debt-collector negotiations and debt payments.

Wage Garnishments

    Pennsylvania law only permits wage garnishment for child-support judgments, spousal-support judgments, student loans through the Pennsylvania Higher Education Assistance Agency, final divorce obligations, back rent for a residential lease, room and board for four weeks or less and taxes.

Child Support and Taxes

    A debt collector in Pennsylvania does have the right to garnishee your wages for local or state taxes that you may have failed to pay. However, if you are already wage-attached for child support, you will not be wage-attached for such taxes. Local taxes can be wage-attached only at 10 percent of your gross pay. Child support is often more than 10 percent, so if you are already wage-attached for court-ordered child support, you will not be able to be wage-attached for local taxes under Pennsylvania state law.

Court Order

    Wage garnishments can be entered only by a court order. Court orders cannot be obtained without first notifying you that such action will be taken.

Federal Garnishments

    Federal wage garnishments, such as garnishments through the Internal Revenue Service, can be made on Pennsylvania residents. These types of wage garnishments will first have to travel through the federal courts system.

Bank Accounts

    Companies such as credit-card issuers cannot garnishee your wages, but in some circumstances they can garnishee your bank account. Thus if you deposit your wages into your bank account, they may be used to satisfy debts that otherwise would not be wage-attached under Pennsylvania state law. These types of companies will have to first go through the court system and obtain a judgment against you.

Employer Fees

    Your employer is able to retain a portion of the garnishment. Under Pennsylvania state law, an employer that is court-ordered to attach the wages of an employee to satisfy a debt may keep up to 2 percent of the amount collected. This percentage is set in place to help alleviate the additional bookkeeping and administrative costs.

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