Wage Garnishment Laws

Wage garnishment happens when a debtor has not satisfied a debt that's owed. The creditor then seeks legal action against the debtor and decision is reached against the debtor, a court order is released that allows for the garnishment of his or her pay. While the act of having one's pay garnished can be embarrassing to endure, there are wage garnishment laws in place to protect the debtor.

For instance, a creditor cannot decide to garnish a debtor's pay and take an exorbitant amount of money. According to wage garnishment laws, creditors can only collect up to 25 percent of their debtor's income for credit card debts. If the debt is due to child support in arrears, up to 60 percent of the debtor's income can be garnished. Anything above and beyond that is prohibited because it is understood that although a debt is owed, the debtor still needs to be able to survive financially.

Also, wage garnishment laws protect the employment status of the debtor. Employers cannot fire an employee for having his wages garnished. If the employee is terminated, he can seek legal action against the employer.

If there are any violations of these wage garnishment laws, the employee's job can be reinstated and the amount of money garnished can be refunded to the debtor. That's why it's extremely important to know your rights and ensure that you're not being taken advantage of in this difficult situation. The Wage and Hour Division of the United States Department of Labor handles all disputes and violations of these laws.

Having your pay garnished is extremely difficult to endure. The best way to handle this is to avoid having to go through it altogether by being proactive with your creditors. If that's not possible and your pay is affected, ensure that the creditors are following the wage garnishment laws so you can protect yourself and your income.