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This may sound like a dumb question but I'm honestly not sure how this works and was curious. When they say they can garnish 25% of your disposable income. What exactly do they consider "disposable income"? I've often wondered about that when I've read about it and never was quite sure what that means. Do they figure in your bills as in mortage or rent, lites, water, phone that sort of thing, or do they take 25% right off the bat of your take home pay? Just been curious about that and figured someone here would know the answer.

Thanks in advance,
Johnita

Posted: Thu Jun 19, 2008 6:52 am Subject: reply

disposable income is income after all taxes and other mandatory deudctions like socail security are taken.hope that helps.

Guest · Posted: Thu Jun 19, 2008 8:37 am Subject:

So in other words, your net income.....

Guest · Posted: Thu Jun 19, 2008 8:46 am Subject:

Yes, say you make $400 a week. After deductions say $300. They can take 25% or $75 of that $300. If you take home less than a certain amount, I think Massachusetts is $125 or less, they can't garnish your wages.

Posted: Thu Jun 19, 2008 8:49 am Subject: reply

i know in illinois the amount is 275.00.anything under that they can't garnish.

Posted: Thu Jun 19, 2008 11:27 am Subject:

Also you have to be sued and lose before a creditor can garnish your wages. The garnishment is also subject to court approval. The court will consider all other money owed prior to setting a garnishment which means the legal amount might be 25% of your disposable income but the court will also consider other debt owed like home mortgages, auto payments and other debt before they set the final amount. I believe only one garnishment can be in force at a time aswell.

Posted: Thu Jun 19, 2008 11:40 am Subject:

Multiple garnishments can be done at one time provided they garnish no more than the state limit. And in most cases, the court will not take into account your other debts.

Student loans are a completely different game. The garnish 15% of your disposable wages without a court order. The federal minimum wage level for student loans is $175 per week.

Posted: Thu Jun 19, 2008 1:44 pm Subject:

So if your net income take home pay is 250 how much could they garnish?

Thanks in advance,
Johnita

Posted: Thu Jun 19, 2008 1:52 pm Subject:

$62.50.

I agree with Soaplady. I've been garnished before, and the court could've cared less about other debts. An older lady had her case ahead of me, and was told it didn't matter if she had to spend $250 a month on life saving medicine, it would not be considered in the calculation.

Posted: Thu Jun 19, 2008 2:33 pm Subject:

It's no wonder people end up having to file bk if they take nothing into consideration. That's just wrong they wouldn't consider someone's life saving medicine into it. But, I guess they don't care in the end as long as they get their money back I guess that's what matters. I can understand why so many are forced into bk though.

Thanks guys for the answers,
Johnita

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I have a question about wage garnishment/disposable income

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