What is Garnishment?
How Does Garnishment Work?
Let's say John Doe has stopped paying child
One of the most common forms of garnishment is wage garnishment. Wage garnishment is often used to recoup back taxes, delinquent child support or judgments, and the courts have the ability to garnish not just wages, but bonuses, commissions, pension income and distributions from retirement plans. Welfare, unemployment, veterans benefits, social security income, workers compensation and child support payments generally cannot be garnished.
The Consumer Protection Act prohibits employers from firing employees just because their earnings are being garnished, though there are exceptions.
Why Does Garnishment Matter?
Garnishments generally require a court order, and they can destroy a person's credit rating. It is important to that not all things can be garnished; state laws set forth the exemptions. Usually, state laws prohibit garnishing a person's assets to the extent that they leave the borrower with no way to himself or herself.