4 Important Facts About Wage Garnishment

When it comes to wage garnishment, there are certain facts that everyone should know. Wage garnishment is the process of deducting money from an employee's wages or salary and sending it directly to a creditor. It is important to understand this procedure before you find yourself in a situation where your wages are being garnished. Here are 4 important facts about wage garnishment that you should be aware of.

First, it’s important to know that federal law limits the amount that can be taken out of an individual’s wages each pay period for wage garnishments. Depending on the type of debt, these limits may vary but they generally cannot exceed 25 percent of an individual's disposable income or the amount by which their wages exceeds 30 times the minimum hourly wage set by their state, whichever is lower.

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