Common Reasons For Wage Garnishment

There are several common reasons for wage garnishment. It may be based on debt, IRS, student loans, or tax debt. If you are worried about garnishment, speak with a lawyer before proceeding. Garnishment laws are complex and often ambiguous. Listed below are some of the most common reasons for garnishment.

Student loan debt

If you’re currently struggling with student loan debt, wage garnishment may be on your mind. Although the process is painful, there are ways to fight it. Unfortunately, most students graduate with student loan debt. As of 2013, seven out of ten college graduates had student debt. This amount averaged $28,400. If you’re in this situation, there are ways to stop wage garnishment and avoid being fired.

Regardless of the cause, you can avoid garnishment by paying off the debt with your savings account or negotiating with family and friends. You can also consider applying for a home equity loan or use your savings to pay off the debt. Once you’ve repaid the loan in full, you can avoid garnishing your wages. In addition to contacting your lender, you can seek help at a nonprofit credit counseling agency or find a legal clinic in your area.

Common Reasons For Wage Garnishment


Wage garnishment is often necessary to pay off debts. Wage garnishment occurs when a government agency attempts to collect money from you. This can destabilize your finances. Many reasons for wage garnishment are related to tax debt. Some of the most common include overdue consumer debt, child support, and student loans. If you owe money to the Department of Education, your employer may be required to withhold 15% of your income as a garnishment. However, there are ways to avoid garnishments.

Usually, the government limits wage garnishments to 25 percent of a person’s disposable income. While this may seem excessive, it is possible to reduce this amount by filing for exemptions. In general, federal law limits wage garnishments to 25 percent of the employee’s disposable income. Wage garnishment for child support and spousal support can be 50 percent of your disposable income. In some cases, however, you may be able to claim an exemption if your garnishment amount is higher than 25 percent. In addition, if you owe back support for 12 weeks or more, the government can garnish an additional five percent of your paycheck.

Other common reasons for wage garnishment include back taxes and child support. If you owe money to the Internal Revenue Service, a garnishment can be a way to get the money owed. You may be unaware you can get a court order to garnish your wages. The IRS will notify you by mail and offer you options for 

Tax debt

If a creditor is harassing you, the first thing you should know is that wage garnishment is a legal process. In most states, garnishments can only be made when the amount of the debt is more than 25% of the worker’s disposable income. Nonetheless, there are some exceptions to this rule. Tax debt is the second most significant reason for wage garnishment. If you owe taxes to the Internal Revenue Service, you will be notified by the agency. In many cases, a garnishment is not the result of a court order, but a notice in the mail may be enough to get the government to stop collecting. However, you can ask the IRS if they have any other options for you to clear up the debt.

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