What is a Wage Garnishment Judgment Exemption?

A wage garnishment judgment exemption is money that creditors can't take even if they have a legal right to take the money. Typically, a wage garnishment is the result of defaulted accounts such as credit cards, personal loans, medical bills or money owed to former landlords. Instead of negotiating for settlements or calling people to convince them to pay, creditors file a lawsuit—and win. In other words, a judge found in the creditors favor giving them legal right to investigate the individual, find out where they work and instruct their employers to take money from their paycheck to pay the judgment. As of 2009, creditors can take up to 25 percent of people's paychecks—every week, two weeks or month—to satisfy the debt. However, even if creditors obtain judgments, they may not be able to collect when individuals fall into certain categories.

Wage Garnishment Judgment Exemption: Public Benefits and Pension Plans

Anyone can be sued for back money they owe. However, not everyone is subjected wage garnishments even if they are receiving income. For example, people on public assistance, social security or receiving pension payments are exempt. Granted, there is an exemption regarding one creditor—government agencies. Individuals who owe back payments in alimony, defaulted student loans or child support can have some money deducted from the public benefits. However, other creditors, according to Nolo, can't garnish wages which include health insurance payments, relocation benefits, unemployment insurance and workers' compensation awards.

Wage Garnishments Judgment Exemption: Another Creditor Took the Maximum Amount

More than one creditor can attach wage garnishments against an individual. For instance, a person making $800 a week after taxes will only receive $600 after the garnishment with the $200 being divided up between creditors. However, if one creditor has taken the maximum allowed—25 percent—then no other creditor can attach their wage garnishment to people's earnings. Thus, any other creditors would have to wait until the first creditor's judgment has been satisfied before attaching their garnishment. Also, if individuals already have a judgment for child support or alimony being taking out of their checks then another garnishment can be deducted.

Wage Garnishment Judgment Exemption: Basic Support

People who don't earn enough money to have wage garnishments taken out of their paychecks are exempt.

Contact a Lawyer

A lawyer can help people facing any wage garnishments. The lawyer can instruct individuals on what to do and how to avoid them.