Maximum Wage Garnishment - How Much Can They Take From My Check
You have had a garnishment placed on your paycheck and you are wondering what to do. How will you pay your bills each month? How will you make your car payment and/or housing payment? How will you buy groceries or pay vital utilities with a diminished income?
Luckily, there are laws regulating the maximum a garnishment can be. While this varies depending on the type of loan and the state in which you reside, this can generally be anywhere from 15% to 25% of your after tax income. Student loans generally have a different maximum wage garnishment rate than personal loans, which then again have a different amount than credit card debt. In all states, a garnishment can only continue as long as the debt continues to have a balance.
In addition, in community property states, if your spouse receives a garnishment judgment, you could be subject to the maximum wage garnishment as well. While this does serve to your benefit as the debt is paid off more quickly, having two incomes with a maximum wage garnishment can seriously affect the income of a family unit as a whole.
To find the exact amount of the maximum wage garnishment allowed by your state, you will need to contact your local courthouse. They might ask for a few details, such as the type of loan or your income, to give you a percentage. (In a few states, the percentage is variable upon the type of debt or the level of your after tax income.)
What can you do once a garnishment has been placed upon your paycheck? First, if you are able to, pay off as much of the debt outside the wage garnishment as you can. This might mean making extra payments directly to the creditor. However, if this is not a financial reality, you can try to talk to the creditor directly. Usually, if you can prove the wage garnishment is causing a hardship for your family, you can have other arrangements made or the percentage lowered. In such instances, you will usually have to have some sort of major hardship that is provable (i.e. pending foreclosure on your home, eviction from an apartment, repossession of your only vehicle).
Again, to find a definitive maximum wage garnishment percentage for the state in which you reside, you will need to contact your local jurisdiction. Now that you are empowered with more education, go out there and take action.
Mark Clayborne is a Certified Credit Consultant with ten years of experience assisting consumers with credit issues. For more powerful secrets debt settlement, please read the first chapter of The Credit Ebook Book and get a Free Restore your Credit E-class at http://www.hiddencreditrepairsecrets.com
Luckily, there are laws regulating the maximum a garnishment can be. While this varies depending on the type of loan and the state in which you reside, this can generally be anywhere from 15% to 25% of your after tax income. Student loans generally have a different maximum wage garnishment rate than personal loans, which then again have a different amount than credit card debt. In all states, a garnishment can only continue as long as the debt continues to have a balance.
In addition, in community property states, if your spouse receives a garnishment judgment, you could be subject to the maximum wage garnishment as well. While this does serve to your benefit as the debt is paid off more quickly, having two incomes with a maximum wage garnishment can seriously affect the income of a family unit as a whole.
To find the exact amount of the maximum wage garnishment allowed by your state, you will need to contact your local courthouse. They might ask for a few details, such as the type of loan or your income, to give you a percentage. (In a few states, the percentage is variable upon the type of debt or the level of your after tax income.)
What can you do once a garnishment has been placed upon your paycheck? First, if you are able to, pay off as much of the debt outside the wage garnishment as you can. This might mean making extra payments directly to the creditor. However, if this is not a financial reality, you can try to talk to the creditor directly. Usually, if you can prove the wage garnishment is causing a hardship for your family, you can have other arrangements made or the percentage lowered. In such instances, you will usually have to have some sort of major hardship that is provable (i.e. pending foreclosure on your home, eviction from an apartment, repossession of your only vehicle).
Again, to find a definitive maximum wage garnishment percentage for the state in which you reside, you will need to contact your local jurisdiction. Now that you are empowered with more education, go out there and take action.
Mark Clayborne is a Certified Credit Consultant with ten years of experience assisting consumers with credit issues. For more powerful secrets debt settlement, please read the first chapter of The Credit Ebook Book and get a Free Restore your Credit E-class at http://www.hiddencreditrepairsecrets.com
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