Garnishment

When money is legally withdrawn from your paycheck and given to another person, this is known as garnishment, or wage garnishment. It alludes to a legal procedure that directs a third party to take money out of a debtor's paycheck or bank account on their behalf. The amount of revenue that can be deducted from a person's paycheck is set down under the Consumer Credit Protection Act. The lesser of the following is the amount subject to garnishment:

• Twenty-five percent of weekly disposable income if the individual’s disposable income is greater than $290.

The Consumer Credit Protection Act's garnishment restrictions do not apply to overdue tax debt, child support, bankruptcy decrees, college tuition, or voluntary salary distributions. Federal organizations and lenders of federal student loans have the right to deduct up to 15% of a person's salary. If a person has no other dependents to support, 60% of their salary might be withheld for child support payments. The lower garnishment limit is applicable where there are differences between the federal and state garnishment limits. An individual may be qualified to submit a claim to lower the wage garnishment amount if they are experiencing financial difficulty as a result of the garnishment.