Having a judgment filed against you does not mean that you are without the ability to cash your paycheck. Only a certain amount of your wages will get deducted from your pay as mandated by state and federal law, according to the Bureau of Labor Statistics.
Identification
If you owe money for a past debt, creditors can choose to file a judgment against you. Wage garnishment happens when a creditor takes you to court for the purposes of receiving payment for the debt. This is usually a last resort for debt collectors. The only way collectors can issue a wage garnishment is by winning the court case.
Function
A court ordered wage garnishment allows the creditor to take out a certain portion of your paycheck each pay period, usually twenty five percent. Creditors can freeze your bank account by result of a court order. This happens two ways: If you cash your paycheck, the creditor can take the full amount from the bank; or, the creditor can seize money that's already set up in a savings or checking account.
Considerations
If you are behind on child support payments, the court can order you to pay up to fifty percent of your earnings.
0 comments:
Post a Comment