Garnishment maximum.

[Roller Coaster]

If the state says 25% of net income can be garnished, is that the total amount that can be had, or can more than one creditor get 25%?
thanks.

[SinkingFast]

Depends on the wording of your State.

Many States only allow a max %'age. If one Creditor is getting that, that's the only Creditor that will receive any money.

Also, many States have verbage about garnishments being 25% after minimum wage x 40 hours/wk is deducted out.

Strictly for example purposes,......... If minimum wage were $5/hr, or $200/wk, and your take home is $250/wk,......... Creditors could only garnish 25% of $50, or $12.50 total.

That may not be exactly right, but you get the idea. In many States, Creditors cannot garnish 25% of your total net. But 25% of your disposable income above minimum wage.

[wingnut]

Total Amount, in most cases

Hey,

Unless there are child support, court orders or tax leins involved, they cannot go above the typical amount, usually determined by your state. The Federal minimum take home wage is 30 times the federal minimum wage. The most that can be garnished is 25% of the amount above 30 X Fed min wage. Having multiple creditors doesn't increase the total maximum garnishment level.

Also, be sure to dispute / contest every chance you get! The system is flooded, so that will definitely buy you some more time.

What type of debt are we talking about here?

Good Luck,

Wingnut

[treehugger1]

Check your state laws. Google "state name wage garnishment." In my state the maximum is a certain percentage based on the minimum wage or 25% of net salary (after taxes.) In my state a garnishment expires after 90 days, and the collector/creditor must file for a new writ. In addition, it is first in/ first paid. I can back them up in the queue for months. If you can afford a 25% after-tax garnishment, then if a big creditor gets a writ, many of the others' garnishments fall off if they move to garnish too soon after the big creditor starts to be paid on their writ.

Again, i would check your state laws.

[Roller Coaster]

The state is Arizona.

CC debt and foreclosure debt, which will be a huge loss to the lender, the market is collapsing quite briskly here. I can't find any local reference to the minimum wage amount and maximum garnishment.

[HHM]

Garnishment tends to be first come first served. The first creditor to get a garnishment gets all 25% (or whatever maximum is set).

[SinkingFast]

From what I found,......... Creditors can garnish up to 25% of your Net pay.

The Creditor gets a Judgement against you and then serves your Employer. Then the Employer pays the Garnishment direct to the Creditor and you get the rest of your Net.

You've got to be wary of other types of Garnishment as well. Bank accts, savings, investments, you name it. Creditors can Garnish those as well.

http://doney.net/dp&s_wage.htm