Wage Garnishment Background
If an individual acquires debt that he/she is not able to repay, one collection technique that lenders may employ is wage garnishments. Wage garnishment occurs when a portion of an individual’s income is levied in order to address the debts that he/she has acquired. The funds that are deducted are used to repay creditors. The IRS also has the authority to practice wage garnishments.
Wage Garnishment Laws
The garnishment of wages can adversely affect an individual’s ability to support him/herself. This is especially true if state wage garnishment laws allow extensive quantities of an individual’s income to be garnished to repay creditors. Therefore, the federal government has instated wage garnishment laws intended to protect debtors, by limiting the amount that can be deducted from his/her earnings.
IRS Wage Garnishment
IRS wage garnishment may occur when an individual fails to pay his/her taxes. The Internal Revenue Service is responsible for collecting taxes from residents of the United States. If an individual does not pay his/her taxes, even following repeated warnings, the IRS can initiate wage garnishment, in which a portion of an individual’s income will be levied to pay the taxes that he/she owes.