Debt is a problem that affects so many people worldwide, and it is important that everyone learns how to properly manage debt even from a young age. The best situation is of course, not to incur any debt, but this is tough in today’s world. Debt can cause the creditor to seek a wage garnishment to compel the repayment of the debt. You could say that wage garnishment is one of the common ways that creditors seek redress for unpaid loans.
Wage garnishments are often imposed on the debtor’s income. In the US, all but four states allow wage garnishment; the sole four being North Carolina, Pennsylvania, South Carolina and Texas. Wage garnishment is allowed in the other states up to a certain limit – It being 25% of a person’s wages after tax deductions.
Employers cannot refuse a garnishment order by the court and must calculate and withhold the portion that needs to be garnished from the employee’s wages. It is perhaps worth knowing that companies cannot fire any employee who is currently being garnished.
