Debt Free Destiny

If you have outstanding balances owed on unsecured debt such as credit cards you may find yourself facing wage garnishments from your creditors. Can they do this? They can and in many cases will garnish your wages but there are a few important facts that you should be aware of to ensure your rights are being protected. The following frequently asked questions about wage garnishments may help you in understanding your rights and what to expect if you find yourself facing a wage attachment.

What is a wage garnishment?

A wage garnishment occurs when a lender is granted a court order (judgment) which requires your employer to withhold part of your salary to be used toward repayment of unpaid debts owed to the lender.

When is a wage garnishment sought?

As a general rule creditors seek wage garnishments or other legal actions as a last resort in an attempt to collect on an outstanding debt. If you have defaulted on the terms and conditions of your agreement with your credit card issuer and they feel they have no other course of action they may turn to the legal system to remedy the situation.

Are wage garnishments regulated?

State and federal law determine how much money may be garnished from your wages based on your income level. In most cases the amount has to be 25% or less of your disposable earnings in a pay period or workweek. Disposable income is the amount of money remaining after Social Security benefits, state unemployment insurance, federal, state and local taxes have been deducted.

How many garnishments may be deducted simultaneously?

Your wages may not be garnished by more than one creditor unless the primary garnishment does not take the 25% allowed by law or the second judgment is for alimony or child support. The federal law for child support and alimony allows up to 50% of your disposable income to be garnished by your employer if you are supporting another spouse or child. If you are not supporting another spouse or child the amount would increase to 60% or your disposable income.

What are your options if you disagree with the garnishment?

If you have received notice that a writ of garnishment has been presented to your employer you must understand first that your employer must follow the law and garnish your wages.  It is understandable that you may be upset or angry over a wage garnishment, especially if you are struggling financially however your argument should not be with your employer as they are required to by law to comply with the wage garnishment. If you have made other arrangements for repayment you may contact your creditor directly or appeal the decision in court.

Can you lose your job due to a wage attachment?

Your employer cannot fire you for having one wage attachment however the garnishment  will require additional time and paperwork on their behalf. If you have more than one wage attachment in a twelve month period you may not be protected by law from termination.