Wage garnishment is one of the toughest actions a debtor can face; when a creditor obtains a judgment against you and is able to take money right out of your hard-earned paycheck, it can really hit home hard, both in terms of the financial squeeze it puts on you, and the emotional cost of having someone reach right into your bank account and take money out. Luckily there are limits on who can garnish your wages and how much they can take.
Most creditors must go through the legal system to obtain a wage garnishment order against you; this means suing you, obtaining a judgment, and procuring a court order before they can proceed with any sort of wage garnishment, either from your employer or from your savings. According to a Dayton bankruptcy attorney, there are a few exceptions where a court order is not needed; these include unpaid federal student loans, income taxes, alimony and child support. If you face these kinds of debt the creditors have the right to garnish your wages without a court order; these garnishments are still subject to the laws governing how much they can take, however.
That amount is generally defined as the lesser of: 25% of your disposable income, or the amount by which your disposable income exceeds 30 times the minimum wage. This can be confusing, but a bankruptcy attorney can help you determine how much the amount will be.
Facing wage garnishment is a prospect no one wishes. That is why you should consult with an bankruptcy attorney to determine your financial options before a garnishment order is obtained against you. You may be surprised at the amount of options available to you to help you get out of debt.