If you are the target of a debt collector, it is possible that they can garnishee your wages in order to satisfy the debt. Specific laws vary by state, but in most cases, they must sue and win a judgment in court and obtain a court order authorizing the garnishment. The IRS, however, does not generally need a court order to garnishee wages. Child support payments cannot be garnished, but your wages can still be garnished, even if you are making child support payments.
Wage Garnishment Basics
When a creditor cannot collect a debt through normal channels, they may ultimately file a lawsuit in order to force the repayment of the debt. If they sue and win, they will obtain a judgment. This means that the courts have reviewed the facts of the case and have determined that the debt is legitimate. Among the remedies available to the creditor is wage garnishment. To do this, they must obtain an order of garnishment from the court and present this order to the debtor's employer. The employer then deducts the appropriate amount from the debtor's wages and forwards the amount to the court, which then repays the creditor. This goes on until the debt is repaid or the debtor can make other arrangements.
Federal Law and Limits on Garnishment
In addition to state and local laws, wage garnishment is covered under Title III of the Consumer Protection Act, which sets a cap on the amount of wages a court can legally garnishee from a debtor's paycheck. Specifically, federal law limits garnishments to 25 percent of disposable earnings, or the amount by which your disposable earnings are more than a multiple of 30 times the federal minimum wage. As of 2011, the federal minimum wage was $7.25 per hour. This limit holds no matter how many garnishment orders are in place
Employee Protection
The same federal law prohibits employers from firing employees on the basis of having received an order for garnishment for any one debt. However, some positions require a background or credit check, or a security clearance. A history of monetary problems may endanger the employment prospects of the debtor in some circumstances.
Child Support, Taxes and Garnishment
Federal law allows for a higher garnishment limit to secure the payment of child support. Under the Consumer Protection Act, this limit can be as high as 50 percent of disposable wages, as described above. The courts may also apply a higher garnishment limit in the case of federal and state tax collection efforts and as part of a bankruptcy settlement.
State Laws
In addition to the protections and limits listed above, your state may have additional specific requirements and exclusions. See the state-by-state breakdown provided in the Resources section for specific information in your state, or consult an experienced attorney.
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