Wage garnishment, what’s it all about? Really.

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It’s like urban legend, many different rumors, many different understandings, here is the straight scoop.

First it is different for every state. Some states even have no garnishment at all, others have high minimums of 25% of your check, others fixed amounts. Check below for information although things change so you should check your own state law if you want to verify this information.

25% Of Your Income

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Mississippi, Montana, Nevada, New Hampshire, New Jersey, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin, Wyoming.

Variable % Of Your Income

Illinois: 15% Gross Income
Maine: 25% of disposable income or up to 40 times the Federal Minimum Wage (whichever is lower)
Massachusetts: $125 a week
Missouri: 25% if single, or 10% if Head of Household
Nebraska: 15% if Head of Household, 25% if single, or 30 times the Federal Minimum Wage
New York: 10% Net Income
Wisconsin: 20% Net Income

0% Of Your Income

District of Colombia: Government employees exempt
Florida: Head of Household exempt
North Carolina: Garnish for taxes, government services, and medical bills from public hospitals.
Pennsylvania: 100 % exempt
South Carolina: 100% exempt
Texas: 100% exempt

Unfortunately all States allow wages to be garnished for taxes, federal student loans, child support, and alimony. Worse yet there are no garnishment limits if you owe money to the Federal Government.

An SBA loan may be considered owed to the Federal Government, depending upon when in the process you are sued for garnishment. If it’s by the bank it is not against the Federal Government. If the bank is paid off by the SBA and it becomes a debt on your personal guaranty against the US Government, handled by the Dept. of Justice, it’s a debt against the Federal Government and has no limits.

If you owe money to more then one creditors, there can only be one garnishment at a time. So whoever wins first and gets a garnishment order wins, the others have to wait .

It is a legal process and thus there are many opportunities to negotiate a settlement. It will not come as a surprise, you will know when it is happening and can respond in advance of the court proceeding.

It is an opportunity to settle.