court order that seizes creditor can seize our wages as
assets from the defendant well. This process is known as
to pay off a debt is known Wage garnishment. Most
as Garnishment. One form of garnishment requires court orders
garnishment is automatic and employers are supposed to
withholding of the debtor's notify the creditor before any
wages. When a creditor fails to step is taken. But garnishment is
satisfy the debt taken, the court the last option for which a
can issue a garnishment against government goes for. It is taken
him. When the creditor petitions up only after all other options
the court to send a portion of have exhausted.
its pay to satisfy the debt then
this step is taken. One should never ignore IRS
because due to ignorance there
The garnishment law differs from are chances of increase in
state to state and varies in garnishment, as they know our
details also. Generally, the TVA work place, living place and even
is required to take over 25% of the bank account. The loans or
an employee's disposable earnings the help provided by the
or assets, thereafter sending government are of many types such
that amount to court. The pay of as student loan for education,
an employee can be under business loan, child support, and
garnishment until the complete of etc. To collect the loans back,
the debt has been collected. IRS is not alone but the state
government, private creditors, or
This situation arises when we even an ex-spouse demanding the
fail to pay taxes, skip out on alimony can also demand
child support or overlook some garnishment of our pay. To claim
bills. Under these circumstances the garnishment, only different
the state government or the branches of the government do not
need to take court orders, other purchase of savings bonds and
than every other agency needs to payment for payroll advance.
obtain a court order to claim the After taking all the preventative
garnishment. measures, the disposable income
amount is calculated the maximum
Losing the income is not easy but amount that can be garnished in
there are some limits for any pay period should not exceed
garnishment. Title III of the more than 25% of the employees'
Consumer Credit Protection Act disposable earning.
caps the amount of wages that can
be taken from an employee. In The garnishment law allows up to
this manner, the person is also 50% of the employees' disposable
left with some part of the income income to be garnished, if he
as well as the creditor is also supports the wife and a child.
paid up. This also prevents the The restrictions on garnishment
creditor to speed up the debt do not apply in case of court
recovery procedure and harass the orders of bankruptcy and
debtor. outstanding debts of federal or
state taxes. When the federal law
The level of garnishment is based differs from the state wage
on the disposable earnings of the garnishment law, the smaller
employee. This amount comes after garnishment amount must be
deducting the legal deductions of followed.
federal state and local taxes,
social security, unemployment, Care should be taken to stay from
insurance and state employee the evil of garnishment. In some
retirement system. Things that do cases this situation occurs when
not come in the head of voluntary a letter is received form the IRS
deductions are union dues, health department 20 days before the
and life insurance, charity, garnishment date. That time if
the person goes to the IRS and explained by the debtor is
explains the problem and genuine then the department
repayment schedule or apologize chalks out a repayment plan. But
and seeks more time for repayment if the second chance of the
then the problem at hand can be repayment is also defaulted then
solved. If the creditor also has further garnishment proceedings
a problem he also needs to go to and called for.
the court and seek an order for
garnishment. Thus if the reason
About the Author:
Henry Byers, Retired IRS Manager and Wage Garnishment expert - focusing on IRS Wage Garnishment and IRS Garnishment
Source: www.isnare.com
