- What is wage garnishment? It is a method in which debt is collected and paid by taking money from a person's payroll check, investments, or even a royalty check. For example, when someone fails to pay a creditor, taxes that they owe, or child support, she may be subject to wage garnishment. Most wage garnishments are ordered by courts. The court will instruct the person's employer to put aside a certain amount from a paycheck that will be sent to whoever is owed the money.
- How does an individual avoid a wage garnishment? This can be done by paying the debts or by contacting the party that is owed the money and coming up with some sort of payment program. Once such a plan is agreed to, it cannot be deviated from. If the person in debt fails to live up to his end of the agreement, then the party owed the money may seek relief by going to court and asking for a wage garnishment.
- If a spouse refuses to pay child support, is wage garnishment a viable option? Most wage garnishments in the United States are a result of one spouse failing to pay child support. In the vast majority of these instances it is the father who refuses to pay or falls behind on his obligations. The parent who has primary custody of the children can go to court to have the delinquent parent's wages garnished.
- Can an individual be terminated because their wages are being garnished? Employees are protected by Title III of what is known as the Consumer Protection Act. This insures that a person cannot be fired or discharged simply because of the case of their pay being garnished for a debt. It also limits how much of the employees' earnings can be taken for repayment of the debt in any one week. This law covers people who receive compensation for services rendered in the form of wages, bonuses, salaries, pensions, and commissions.
- Do wage garnishment laws vary from state to state? States such as Texas, South and North Carolina, and Pennsylvania will allow wages to be garnished only for state and federal tax debts, child support, damages form criminal or civil lawsuits, and certain types of defaulted student loans. States have different limits on the amount of a person's wages that can be garnished, but all states have stiff penalties for people who try to avoid garnishment by hiding assets.
