What is wage garnishment determined from or based on?

The total income wage garnishment determination depends on your disposable income. In other words, how much money you make at your job. Title III of the Consumer Credit Protection Act (CCPA), protects you against an excessive wage garnishment. So creditors are only allowed to garnish up to 25 percent of your wages. Other wage garnishments such as child support, alimony, taxes and student loans are allowed to take up to 50 percent of your wages. The money is deducted until the debt is satisfied.

However, that is only if the amount of money you make is greater than 30 times the federal minimum wage, according to the U.S. Department of Labor (DOL). As of 2009, the federal minimum wage is $7.25 per hour. So as long as you make more than the federal minimum wage, your wages can be garnished. If not, you’ll be exempt and no money will be taken from your wages.

The way a wage garnishment works is that federal, state and local taxes are deducted from your paycheck. Then the wage garnishment is taken out. Next, the rest of your deductions such as health insurance or charity contributions are subtracted from your paycheck.

If you want to stop a wage garnishment, then talk to a lawyer. You lawyer will explain your options to avoid or stop the garnishment. For instance, you may negotiate with creditors, file bankruptcy or file a motion with the court to protest the garnishment.