Garnishment Topics

• wage garnishment
• tax garnishments
• disposable income
• debtors
• enough money
• creditors
• wages
• payroll
• negotiations
• circumstances
• loans
• credit card
• united states

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Garnishment, Garnishment

In the United States, some such garnishments are limited by federal law to 25 percent of the disposable income that the employee earns. Wage garnishments continue until the entire debt is paid or arrangements are made to pay off the debt.

When processing payroll, sometimes there is not enough money in the employee's net pay to satisfy all of the garnishments. In such a case, the correct order to take a garnishment must be satisfied. For example, in a case with federal tax, local tax, and credit card garnishments, the first garnishment taken would be the federal tax garnishments, then the local tax garnishments, and finally, garnishments for the credit card. Employers receive a notice telling them to withhold a certain amount of their employee's wages for payment and cannot refuse to garnish wages.

States may also prohibit garnishment altogether in certain circumstances. For example, in Florida the wages of a person who provides more than half the support for a child or other dependent are exempt from garnishment altogether (though this exemption is subject to waiver). Loans and negotiations with creditors can also help debtors to avoid wage garnishment.

Source: Wikipedia > Garnishment