QandAs: Legal

What is wage garnishment?

Answer:
Garnishment refers to the collection of monies owed,

whether the result of taxes, defaulted loans, lawsuits, or other incidents. Wage garnishment is the most common type of garnishment in the United States. Wage garnishment involves deducting money from someone’s wages or salary, due to a court order.

Wages may be garnished until the debt is paid, but no more than 25% of an employee’s disposable income can be taken at any time. The wages are deducted by the payroll department in order to pay off the debt, fines, taxes, or court judgment. Employers are required to garnish an employee’s wages if they have received a court order, and cannot refuse.

Someone who has or has had their wages garnished may have trouble with their credit scores, acquiring a loan, or opening a bank account. In certain jurisdictions, wage garnishment may be prohibited in specific situations.