When an individual has acquired debt that he/she is not able to pay, creditors may initiate garnishment of wages. As a result, a certain portion of an individual’s income can be taken in order to repay creditors. There are many states that maintain wage garnishment laws. However, the United States government has also established federal wage garnishment laws.
If the federal wage garnishment laws result in the deduction of fewer funds from an individuals income, then the federal legislation is to be employed. The amount that is deducted from an individual’s wages often depends upon the extent of his/her income. In most instances, only 25 percent of an individual’s income can be garnished. This is usually a weekly deduction, and therefore, 25 percent of an individual’s weekly income can be garnished.
The Federal Wage Garnishment Law, Consumer Credit Protection Act is the legislation that is responsible for regulation the portion of an individual’s income that can be garnished. This legislation was established in order to protect consumers from extensive and unreasonable wage garnishment. The garnishment of wages can severely impact an individual’s ability to support him/herself and his/her family. Therefore, it is important for an individual to understand his/her rights, outlined in both state and federal wage garnishment laws.
The established legislation protects an individual’s entire personal earnings, including commission, salaries, hourly wages, and any bonuses that he/she may receive. Retirement funds and pension plans are also protected under federal wage garnishment laws.