Key components of the federal wage garnishment act
Key components of the federal wage garnishment act
The federal wage garnishment act is created with the interests of all the parties involved. The government has tried to give justice to all the parties involved in the wage garnishment procedures. The creditors try to get back their credit amounts from their borrowers by reconciliations first. If the borrower does not co operate they are left with only weapon in their hand that is wage garnishment procedure. They will have to go to the court first. The court issues the summons to the borrowers. The borrowers are given the full chance of defending their legal positions in the court of the law. After this procedure, the court gives the judgment. The creditor will have to take an official copy of this judgment to the employer. The employer will cut money from the wages of the employee and pass it to the creditors. There are clear restrictions regarding on what amount of wages is this wage garnishment procedure is applicable. There is also protection for the employee from getting fired from the job on the account of the wage garnishment procedure. The employer can not fire the employee if there is single wage garnishment procedure against him. However in case of more than one wage garnishment procedures he can fire the employee. If the employer does not obey the federal wage garnishment act then he can get a punishment of $1000 or one year imprisonment. If you are getting minimum wages then this wage garnishment act does not apply to you. If there is already one wage garnishment procedure against you, then the creditors can not start the new wage garnishment procedure against you. There are rules and regulations regarding the definition of the income and the disposable income. Only up to 25% of this disposable income amount comes under the wage garnishment procedure. There are exemptions also. Social security benefits, public assistance benefits and retirement plan benefits can not attract the wage garnishment act. The income coming from these sources can not be garnished. There arte other exemptions also. But they do not apply in case of the child support or the spousal support case. These are worker’s compensation awards, unemployment benefits, disability benefits. Up to 50% of the disposable income can be garnished in case of the child and spousal support cases. It is obvious that the rights of the children, spouses are protected. Also there is effort to protect the rights of the borrower’s livelihood. Here is protection to the creditor’s rights also. The federal government wage garnishment act tries to be fair to the all the parties concerned. These are the some of the key components of the federal wage garnishment act.
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