Wages and Garnishments
Garnishments & Exemptions
Team A
March 22, 2013
Instructor Hicks
BUL 2131-28
Team A
March 22, 2013
BUL 2131-28
Instructor Hicks
Garnishments & Exemptions
According to Miller & Hollowell (2013) “Garnishments occur when a creditor is permitted to collect a debt by seeing property of the debtor (such as wages or funds in a bank account) that is being held by a third party (such as an employer or a bank). As a result of a garnishment proceeding, the debtor’s employer may be ordered by the court to turn over a portion of the debtor’s wages to pay the debt. In each state, the federal and state laws limit the amount that can be garnished from a debtors weekly pay that they take home. The federal law provides a minimal framework to protect debtors from losing all their income in order to pay judgment debts. The state laws provide dollar exemptions, and these amounts are often larger than those provided by the federal law. In every state, the federal and state laws can be joined together to help create sufficient funds that can help a debtor continue to live and provide for their families. Garnishments are different from state to state for example, according to some laws in some states, the judgment creditor (the creditor who obtains the garnishment order) needs to obtain only one order of garnishment, which will then be applied weekly, until the full debt is paid. In this report we will discuss the different garnishment laws in a few states.
In Florida, Wages of the head of a family are exempt from garnishment unless the person 's net wages are more than $500 per week and the person has agreed in writing to allow wages to be taken to pay the debt. A head of family includes all persons who reside in Florida and who provide more than one-half of the support for a child or other dependent. Wages in a bank account that belong to a head of family retain their protection from being seized for six
Team A
March 22, 2013
Instructor Hicks
BUL 2131-28
Team A
March 22, 2013
BUL 2131-28
Instructor Hicks
Garnishments & Exemptions
According to Miller & Hollowell (2013) “Garnishments occur when a creditor is permitted to collect a debt by seeing property of the debtor (such as wages or funds in a bank account) that is being held by a third party (such as an employer or a bank). As a result of a garnishment proceeding, the debtor’s employer may be ordered by the court to turn over a portion of the debtor’s wages to pay the debt. In each state, the federal and state laws limit the amount that can be garnished from a debtors weekly pay that they take home. The federal law provides a minimal framework to protect debtors from losing all their income in order to pay judgment debts. The state laws provide dollar exemptions, and these amounts are often larger than those provided by the federal law. In every state, the federal and state laws can be joined together to help create sufficient funds that can help a debtor continue to live and provide for their families. Garnishments are different from state to state for example, according to some laws in some states, the judgment creditor (the creditor who obtains the garnishment order) needs to obtain only one order of garnishment, which will then be applied weekly, until the full debt is paid. In this report we will discuss the different garnishment laws in a few states.
In Florida, Wages of the head of a family are exempt from garnishment unless the person 's net wages are more than $500 per week and the person has agreed in writing to allow wages to be taken to pay the debt. A head of family includes all persons who reside in Florida and who provide more than one-half of the support for a child or other dependent. Wages in a bank account that belong to a head of family retain their protection from being seized for six
References: Alan Kauth What is California’s laws regarding wage garnishment, levy, lien, foreclosure? Accessed: August 25, 2011 b http://aforeclosurealternative.com/what-are-californias-laws-regarding-wage-garnishment-levy-lien-foreclosure/ Hollowell, W.E. & Miller, R. L., (2011). Business law text & exercises. (6th ed.) South-Western, Cengage Learning Consumer Pamphlets,The Florida Bar650, Apalachee ParkwayTallahassee, FL 32399-2300 http://www.fair-debt-collection.com/state-garnishment-laws-4.html#39