Sunday, February 5, 2012

Can Creditors Garnish My Wages in the State of Pennsylvania?

Can Creditors Garnish My Wages in the State of Pennsylvania?

Commercial creditors cannot garnish wages in Pennsylvania. This means that credit card companies and other businesses cannot take money from your paycheck. However, debtors in Pennsylvania aren't completely free from garnishment of wages. Landlords can seek garnishment orders in some cases, as can state and federal taxing agencies. People who evade child support orders can also face garnishment.

Fees

    Even though Pennsylvania law is fairly favorable to debtors, it enables employers to tack on fees to recoup the cost of garnishing wages. Employers can deduct 2 percent of an employee's salary for the cost of administering garnishments.

Threats

    Under the federal law, the Fair Debt Collection Practices Act makes it illegal for debt collectors to threaten garnishment when they have no intention or ability to do so. The act gives debtors a right to sue when harassed by debt collectors. This means that in Pennsylvania, debtors who are threatened with garnishment by bill collectors may be able to sue the collectors.

Child Support

    Child support payments take priority over all other garnishments in Pennsylvania. Courts can garnish up to 50 percent of a person's income if a parent has a new family, and 60 percent if that parent is not supporting a family. The amounts can increase by 5 percent if the parent is more than 12 weeks behind, according to the Pennsylvania Department of Human Services.

Taxes

    The Pennsylvania Department of Revenue can garnish up to 10 percent of wages. In addition, his employer can tack on a 2 percent administrative fee. The department states that it will contact a wage earner prior to garnishment, and in many cases, delinquent taxpayers can enter into payment plans that take a much smaller portion of income.

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