Does wage garnishment have you feeling stressed?

Dealing with substantial debt can often leave South Florida residents feeling lost. You may wonder what options will work best for you and what may happen in the event that you do not get your debts addressed in a timely manner. You may already be dealing with collection calls and other distressing efforts from creditors to obtain payment. Do you fear that your situation will only get worse?

Unfortunately, when outstanding debts go unaddressed, the possibility exists that creditors could attempt to garnish your wages. This type of action may prove particularly hurtful as you certainly need your income in order to make ends meet and to provide for yourself and your family.

How much of your wages could be garnished?

When it comes to wage garnishment, you do not need to fear that the entirety of your paycheck will disappear. The Consumer Credit Protection Act states that garnishment cannot go over 25 percent of your disposable weekly income, or alternatively, the amount taken would equal the income remaining after multiplying your disposable income by thirty times the federal minimum wage. When deciding which method to use, the lower amount of the two applies. Sounds confusing doesn’t it?

What counts as disposable income?

When you consider disposable income, you may think the amount of money left over after meeting your specific needs. However, in relation to wage garnishment, disposable income only takes required tax deductions into account. Therefore, your rent, food and other items you consider necessities do not count.

Could you lose your job over wage garnishment?

The idea of having your wages garnished may cause you to contemplate a variety of what-ifs. One scenario that may have you concerned relates to whether your employer could dismiss you from your position due to garnishment. Under federal law, your employer cannot terminate you from your job if the garnishment occurs to address a single debt. However, if the garnishment works to cover multiple debts, you could face dismissal in the event that your employer chooses to take such action.

Can you avoid wage garnishment?

To avoid this type of situation altogether, learn about your options for addressing your outstanding debts. For many individuals, bankruptcy can help decrease or eliminate your outstanding debts as well as stop any garnishment actions. In order to determine your eligibility for this relief method, you may wish to gain more information from reliable local legal resources.