Online Calculator | Understanding Wage Garnishment

Understanding Wage Garnishment

Are you in credit card debt and worried that your wages might be garnished if you are taken to court by your creditors? Do you owe back child support and fear your money might be taken from your paycheck to bring your child support up to date? Are your student loans in default and you expect garnishment is an option for the lenders?

Legal garnishment of your wages depends on different factors:

 

  • the kind of debt
  • who is legally able to order a garnishment against an individual
  • the state laws governing this type of legal action.

 

In easy terms wage garnishment is the taking of your work compensation or wages for a legal debt you owe. Most times a court order is necessary for wages to be taken.

A legal entity such as the IRS can take legal action to recover unpaid taxes.

Your employer must take part of your wages. This will be automatically handled by the payroll department.

Most states allow garnishment for such situations as payment of defaulted school loans, child support, and unpaid taxes. Also, many states put a cap on the maximum percentage that can be taken from someones pay. You still need to be able to live.

Taking legal steps towards wage garnishment is sought as a last resort. Many times talking with the person you owe money to and making arrangements can avoid this legal action.

Garnishment can hurt your credit history. Why let this happen when you can negotiate new terms for repayment to the person you owe money to?

Wage garnishment is taken very seriously by courts and other legal institutions. No one likes to garnish some one’s wages. This takes much time and effort. But in all honesty, it’s a fair practice when money is owed for something such as child support.

You better consult an attorney so you will know what your rights are. Most allow for a free consultation. Remember that knowing your rights could save your credit reputation.

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