How bad are wage garnishments?

Blog Introduction: If you’re facing wage garnishment, you may be wondering how bad it really is. wage garnishment occurs when a creditor trustee sends a notice to your employer ordering them to withhold money from your paycheck to repay a debt.  While wage garnishment is never pleasant, the good news is that there are laws in place to protect you from unfair treatment.

Wage Garnishment Limits

Federal law places limits on how much of your income can be garnished. The amount that can be taken from your paycheck depends on the type of debt you owe. For instance, debts owed for child support, alimony, taxes, or student loans are exempt from the limits set by federal law. That means creditors can take as much money as they need to satisfy these types of debts.

For other types of debt, like credit card debt or medical bills, the amount that can be garnished is capped at 25% of your disposable earnings (the amount of your paycheck after taxes and mandatory deductions). In some states, the percentage is even lower. For example, in Pennsylvania, creditors can only take 10% of your disposable earnings. 

Protection from Unfair Treatment

In addition to federal limits on the amount of your income that can be garnished, there are also laws in place to protect you from unfair treatment by creditors. For example, creditors are not allowed to take more money than they are legally entitled to. They also cannot leave you with so little money that you cannot meet your basic living expenses. 

Reasons to End Your Wage Garnishment Now

Blog Introduction: A wage garnishment is when a court order directs your employer to withhold a certain amount of money from your paycheck and send it directly to your creditors. If you're currently facing wage garnishment, you may be feeling helpless and stuck. But it is possible to end a wage garnishment—and there are some good reasons why you should.

You'll Be Able to Meet Your Other Financial Obligations 

If you're having money withheld from your paycheck, that means you have less money available to meet your other financial obligations. This can make it difficult to pay your rent or mortgage, buy groceries, put gas in your car, etc. When you end your wage garnishment, you'll have more money available to cover your living expenses. 

Your Employer May Not Be Required to Comply 

If the debt that's being collected is not valid—for example, if it's been discharged in bankruptcy—then your employer may not be required to comply with the wage garnishment order. This is something you should discuss with an attorney. 

You Deserve a Fresh Start 

Everyone makes mistakes—and if yours led to wage garnishment, that doesn't mean you deserve to suffer forever. Once you've paid off your debt, you deserve a fresh start. Ending your wage garnishment is one way to help make that happen. 

If you think a creditor has violated the law, you can file a complaint with the Consumer Financial Protection Bureau (CFPB). The CFPB is a federal agency that protects consumers from unfair, deceptive, or abusive practices by financial institutions. 

While wage garnishment is never pleasant, there are laws in place to protect you from unfair treatment. Creditors are limited in the amount they can take from your paycheck, and they cannot leave you with so little money that you cannot meet your basic living expenses. If you think a creditor has violated the law, you can file a complaint with the Consumer Financial Protection Bureau (CFPB).