How much of my check can be garnished?

You have just learned that one of your creditors is starting to take money out of your paycheck or even your bank account. This is called a garnishment. A garnishment is a legal procedure where a portion of your paycheck is taken for the payment of a debt. Garnishments are usually by a creditor that has a court order. Some government agencies can garnish your paycheck without a court order, for debts such as back taxes and student loans. Federal laws limit the amount that a person’s paycheck may be garnished. A garnishment applies to wages, salaries, commissions and bonuses. The amount of pay subject to garnishment is based on your “disposable earnings,” which is the amount left after legally required deductions are made. Legally required deductions are federal, state, and local taxes, the employee’s share of social security, Medicare, State unemployment, and required employee retirement.  Federal law sets the maximum amount that may be garnished in…

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