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A wage garnishment is the required withholding of an employee's income by an employer for the payment of a debt. Such requirements may be the result of a court order or may be in accordance with an IRSor state tax collection effort. While laws governing wage garnishments can vary from state to state, federal law generally supercedes state law unless state law grants extra protections to the debtor.
Federal law protects debtors from being discharged by their employers due to the required garnishment for any one debt. It does not protect debtors from being discharged by their employers if their wages are garnished for more than one debt. Federal law also dictates that under most circumstances wage garnishments cannot exceed more than 25% of a debtor's disposable income, this limit applies regardless of how many wage garnishments are in effect. Exceptions to this include garnishments for child support payments, tax payments and/or payments associated with a bankruptcy ruling.
Creditors typically only use wage garnishment as a last resort collection effort, because of the legal hurdles involved. In most states, a wage garnishment can only be imposed after a court has rendered a judgement that says the debtor owes the money and then issues a court order imposing the garnishment. These are often separate court decisions.
In order to avoid a potentially embarrasing wage garnishment, a debtor might want to consider negotiating a settement with the creditor. Creditors are required to notify a debtor of impending legal action prior to initiating a lawsuit and generally prefer to work directly with a debtor rather than go to court. In many cases, a debtor may wish to consult with an attorney to determine whether the debt is legitimate and the extent of his/her options. An attorney knowledgable in debt collection and bankruptcy law can advise the debtor on the applicable statute of limitations, the maximum garnishment amounts, and the best way to manage the debt.
There are other types of garnishments besides wage garnishments, including bank garnishments. A creditor may seek to have a debtor's bank account garnished if he/she is not gainfully employed. In the cases where a debtor is employed and a lawsuit has been initiated by the creditor, wage garnishments are the most common method of collection.
What else can I help you with?
Are individual states working on a way to stop wage garnishments?
Some people have fought for this cause. However, wage garnishments are still legal in many states.
How many wage garnishments can they take at once?
The number of wage garnishments that can be taken at once typically depends on federal and state laws. Under federal law, a creditor can generally garnish up to 25% of your disposable income or the amount by which your income exceeds 30 times the federal minimum wage, whichever is less. However, if multiple garnishments are in effect, the total amount garnished cannot exceed this limit. State laws may have additional restrictions, so it's essential to check local regulations for specific guidelines.
what % is wage ganishments in Pa?
Pennsylvania does not permit wage garnishments from credit cards or loans.
In Tennessee how many multiple wage garnishments are allowed by law?
The state does not allow simultaneous wage garnishment. One garnishment action by a creditor must be completed before another can be instated. Note: Garnishments for tax arrearages and/or child support are not "true" garnishments and they can be active in conjuction with a creditor wage garnishment.
Can they Garnish wages on unsecured debt?
It depends on the state that you live in. Google "your state wage garnishments" and this should list your state and it will go into detail what can happen. Thank God I live in TEXAS...where they prohibit wage garnishments!!
How do I stop wage garnishments?
You will need to call the company that is doing the wage garnishments, and they can give you the information that is need to start the process. You will also need to talk to an attorney who can help you stop as you may have to file papers with the judge.
Can you deduct wage garnishments from your federal and state income that is reported to the IRS?
No. Garnishments are just payment of a debt that you owe and haven't paid. This is not a deductible item.
Where can one find more information on wage garnishments?
There are many places that provide information on wage garnishments, those would be law or attorney offices. You should find the nearest law office in your region and ask for further details there.
Can your wages be garnished?
Depends on the state you live in. Most states allow wage garnishments.
Does your employer have to agree to your wage garnishment or are they forced to?
It is not up to your employer. Wage garnishment is a matter of law, not preference. Most all employers are required by law to comply with a wage garnishment. At the present 4 US States- North Carolina,South Carolina,Texas and Pennsylvania do not allow wage garnishments at all except for debts related to taxes, child support, federally guaranteed student loans, and court-ordered fines or restitution... There are also several other types of employers that are not required to comply with wage garnishments at all whatsoever,even when those wage garnishments are ordered by a court....here are but a few of those> An employer that pays you totally in cash and requires you (the employee) to pay all the Federal,State and Local taxes each quarter yourself....is exzempt from complying with wage garnishments.. An employer that classifies you as a sub-contractor that is solely responsible for your own taxes,insurance,licensing ect is exzempt from complying with wage garnishments. An empolyer that pays waiters/waitresses the required $2.13 per hour in which the employees cash tips make up 75% of the employees pay are not required to comply with wage garnishments.. An employer that hires an employee on a temporary basis of 30 days or less is exzempt from complying with wage garnishments..
How many garnishments can one have taken from their wages in Mississippi?
Wage garnishments for creditor debt must run consecutively (one at a time), they cannot run concurrently. The exceptions are child support garnishments and tax arrearage garnishments can be active at the same time a creditor garnishment is in affect.
Is there any way to stop wage garnishments?
The best thing to do would be to check out the Federal Wage Garnishment Laws at www.jkharris.com. Generally if you are having your wages garnished it is because of some money owed to someone, so you could try to work out payments at the source too.
