| Wage garnishment does not apply to particular | | | | garnished according to a state law is more than |
| kinds of income. Even if a court has issued an | | | | the wages allowed by federal law, the federal law |
| order enabling an employer to garnish your | | | | must prevail. |
| wages, there are still exempt incomes that cannot | | | | One of the best ways to ensure protection |
| be withheld to pay the creditor. Knowing what are | | | | against wage garnishment is to create a separate |
| the types of income that falls under the | | | | wage account in a bank. This is intended to help in |
| exception is important in protecting your wages | | | | separating protected wages from money acquired |
| from creditors. | | | | from other sources. But in some instances, a |
| Those that are exempted from the coverage of | | | | separate wage account is not required. For |
| wage garnishment include wages, salary, social | | | | instance, Florida laws protect up to 100% of the |
| security, welfare, or unemployment compensation. | | | | head of household's wages from being garnished |
| Certain types of exemptions will only be applicable | | | | despite its getting mixed with other funds. This |
| to heads of households. But most of these will | | | | applies if you are able to show which deposited |
| apply to any person in general. It is important to | | | | funds are the your wages. |
| note, however, that there are states, which do | | | | When taking this option of creating a wage |
| not consider income of independent contractors | | | | account, it must be kept in mind that debt |
| or sole owners of corporations as exempt wages. | | | | collectors can also seek to freeze accounts. But if |
| All those that are considered exempt income | | | | your account contains only the exempt funds, |
| cannot be forcibly taken by the creditor as | | | | then the account can be released from any |
| payment of debt. Specifically, the exemption | | | | garnishment. Some states may vary in terms of |
| applies to certain types of income according to | | | | the exemption period. In Florida, the wages |
| federal law such as Public Assistance (PA), | | | | cannot be garnished within six months as long as |
| Supplemental Security Income (SSI), Social | | | | these are clearly segregated and identified as |
| Security, Social Security Disability (SSD), Veterans | | | | wages. In New York, only ten percent of the |
| benefits (VA), child support, spousal maintenance, | | | | gross income can be garnished or the maximum |
| workers compensation, unemployment insurance, | | | | amount allowed by federal law, whichever is less. |
| railroad retirement benefits, and black lung | | | | If the garnished wages are applied to alimony, |
| benefits. | | | | support or maintenance, the total combined |
| There are also limitations to the amount of | | | | amount should not exceed 25% of disposable |
| earnings that can be garnished in a workweek or | | | | earnings. |
| pay period. The Consumer Credit Protection Act | | | | Some states like California applies the same |
| allows only an amount equal to the lesser of 25 | | | | guidelines provided by federal law. The state of |
| percent of disposable earnings or the amount by | | | | Massachusetts may permit garnished wages of up |
| which disposable earnings are greater than 30 | | | | to $125 per week. Pennsylvania, on the other |
| times the federal minimum hourly wage that is | | | | hand, allows only garnishment for taxes and child |
| set by the Fair Labor Standards Act. Hence, this | | | | support. |
| protection will apply regardless of the number of | | | | It is best to get more information of your state's |
| garnishment orders the employee receives. | | | | rules on wage accounts and wage garnishment by |
| It must be noted, however, that all states do not | | | | creditors. Be informed of your rights so you can |
| exempt wage garnishment for child support, | | | | protect yourself from having bank accounts |
| alimony, taxes and federal student loans. There | | | | frozen and wage garnished by creditors. After all, |
| are varying laws on garnishment for each state | | | | the acts of creditors may violate existing rules on |
| but the general guideline is if the wages to be | | | | exemption for garnishment in your state. |