Understanding Wage Garnishment
| If you have outstanding balances owed on credit cards and other unsecured debt you could facing wage garnishments from your creditors. Are they allowed to do this? Yes, they can but there are a few important facts that you should know to ensure your rights are being protected. The following could help you understand your rights and what to expect if you find yourself facing a wage garnishment.
What is a wage garnishment? A wage garnishment is when a lender is granted a court order (or judgment) which requires your employer to withhold a portion of your salary to be used to pay back unpaid debts owed to the lender. When is a wage garnishment sought? Creditors generally seek wage garnishments and other legal actions as a last resort attempt to collect on an unpaid debt. Are wage garnishments regulated? They are regulated by state and federal laws which determine how much money may be garnished. In most cases the amount must be less than 25% of the disposable earnings in a pay period. This is the amount of money remaining after deductions for Social Security, insurance, taxes, etc. How many garnishments may be deducted simultaneously? More than none garnishment can be applied if your primary wage garnishment does not take the full 25% allowed by law or if the second judgment is for alimony or child support. Federal laws for child support and alimony allow up to 50% of your disposable income be taken for wage garnishment. What are your options if you disagree with the garnishment? If you disagree with the wage garnishment, you can appeal the decision in court. While you may be upset or angry towards your employer, remember that they are required to comply by law and are not in control over how much of your salary is garnished. Can you lose your job due to a wage attachment? Your employer cannot fire you for having one wage attachment however if you have more than one wage attachment in a twelve month period you may not be protected by law. If you feel that you have been treated unfairly and your wages are garnished, contact Debt Help Lawyers today. |
