What's In A Wage Garnishment Order

If you are in debt and behind on certain debts you may have experienced the ill effects of a wage garnishment order. While not all debts qualify for garnishment, there are some serious debts that can lead to this legal action quickly.

The Ins And Outs

Tax debts, back due child support, unpaid court fines, defaulted student loans and unpaid criminal restitution payments are all debt types that may result in a garnishment order. Once a court has granted a creditor a garnishment  order, you will soon see your paycheck or bank account affected. Some wage garnishment orders require that your employer pay the creditor before you receive your paycheck. However, there are rules as to the amount of income that can be garnished. In general, garnishments cannot exceed more than 10 percent of your gross monthly income or 25 percent of your disposable income per month.

Garnishments of your bank account are more difficult for a creditor to obtain and generally require extended proof of collection attempts. Further, bank account garnishments are typically reserved for back taxes or unpaid spousal support payments. The worst part of a garnishment order is that once it is implemented, they can be difficult to manage. Filing for bankruptcy can both prevent and halt a garnishment order. However, if the debtor does not qualify or the case is dismissed, the garnishment order may continue to be active.