Types of Wage Garnishments

There are several types of entities that can garnish your wages, including:

1. The government: Federal and state governments can garnish your wages for unpaid taxes, student loans, and child support.
2. Creditors: Creditors who have obtained a judgment against you can also garnish your wages to collect the debt.
3. Court orders: In some cases, a court may order wage garnishment as part of a legal settlement or judgment.

The percentage of your wages that can be garnished varies depending on the type of debt and the jurisdiction. Federal law sets limits on the amount that can be garnished for most types of debt, but some states have more restrictive laws that provide additional protections for workers. Generally, creditors can garnish up to 25% of your disposable income, which is the amount of your wages left over after taxes and other deductions. However, for certain types of debt such as child support, the percentage that can be garnished may be higher.

It’s important to note that wage garnishment can have a significant impact on your finances, making it difficult to pay bills and meet other expenses. If you are facing wage garnishment, it’s important to consult with a financial advisor or lawyer to explore your options and determine the best course of action.