I have a question about wage garnishment/disposable income

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

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

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

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.

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

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.

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.

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


Thanks in advance,
Johnita

$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.

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

is there any way I can get the garnishment stopped other than filing bkrptcy. I can't afford $218.00 being taken out each pay period

If you have been garnished by the same company before and they did not take all the money the first time. And now they want more do they have to go back through the courts to get it. I could not afford the $ 400 a month they wanted.

anonymous - your only cause of action is to file an objection with the court. if it has already been served this might be tough. you're also going to need evidence to prove a hardship, and the court might grant that the execution will proceed but at a lower, set amount.

If monies are being withheld for loan pmts and monies into retirement, is the 25% figured after those are taken out? Is the 25% always the amount or is it sometimes less?

The wage garnishment amount is based on the net after all taxes, does that also include child support and insurance

WOW ALL OF THESE ?'S & COMMENTS ARE VERY HELPFUL. I jus found out my wages are going to be garnished for student loans the paper says 15% of my disposable income so to make sure Im understanding right say I bring home after taxes & med. insurance are deducted aprox $700 every 2 wks then my garnishment will b for $105 every 2wks...so $210 a mth? Im hoping Im wrong.. Im a single mom 2kids which makes "too much" $ to recieve any assistance on daycare or anything at all & dont get any child support thats ordered & im just making sure I AM UNDERSTANDING THAT AMOUNT OF $ CAN JUST BE TAKEN OUT OF MY CHECK???