How do federal and state laws affect garnishment exemptions?

A creditor who gets a garnishment order from court cannot automatically collect a fraction of the debtor's wages to start paying off a debt. There are certain exemptions that a debtor can apply for so that there is enough money left for needs and payments of other fixed monthly payments. Federal and state laws differ in terms of garnishment exemptions, especially when it comes to dependents garnishment exemptions.

Under federal laws, garnishment should be the lower of 25% of disposable income or the amount over 30% the minimum wage earned a week. Child support and federal taxes should also take precedence. But if the garnishment is for taxes, then, there can be no exemptions just like for child support. Disposable income is the net income after taxes are deducted from wages. This implies that dependents are not considered in the garnishment of income. States, however, are free to interpret what disposable income is for them.

Some state laws are more considerate when it comes to dependents garnishment exemptions. In Vermont, for instance, a debtor can get all of his wages exempted from garnishment if he can prove that all of his net income is used to support himself and his dependents. Virginia gives a $500 exemption for each dependent. Parents whose income qualifies under exemption also gets certain weekly amounts for their children. Since state laws vary for garnishment exemptions on dependents, you should contact a lawyer right away who is an expert in debt settlements. The lawyer can help you maximize exemptions so you have enough to meet your needs and that of your dependents.