Wage Garnishment from Un-secured creditors?

[mbjr73]

I have a question and looked on the forum but could not find the answer.

I want to know if a unsecured creditor does sue for a garnishment(wage), I know they get the 25%.

Say another creditor sues and get a judgment also, will each get 25% of my paycheck or will they have to wait in line?

Thanks

[LadyInTheRed]

They will have to wait in line. And, it isn't 25% of your pay check. It's 25% of your disposable wages; more for some debts. The following is from the Department of Labor website:

Title III also protects employees by limiting the amount of earnings that may be garnished in any workweek or pay period to the lesser of 25 percent of disposable earnings or the amount by which disposable earnings are greater than 30 times the federal minimum hourly wage prescribed by Section 6(a) (1) of the Fair Labor Standards Act of 1938. This limit applies regardless of how many garnishment orders an employer receives. The federal minimum wage is $7.25 per hour effective July 24, 2009.

Title III permits a greater amount of an employee’s wages to be garnished for child support, bankruptcy, or federal or state tax payments. Title III allows up to 50 percent of an employee's disposable earnings to be garnished for child support if the employee is supporting a current spouse or child, who is not the subject of the support order, and up to 60 percent if the employee is not doing so. An additional five percent may be garnished for support payments over 12 weeks in arrears.

An employee’s "disposable earnings" is the amount of earnings left after legally required deductions (e.g., federal, state and local taxes; Social Security; unemployment insurance; and state employee retirement systems) have been made. Deductions not required by law (e.g., union dues, health and life insurance, and charitable contributions) are not subtracted from gross earnings when the amount of disposable earnings for garnishment purposes is calculated.

http://www.dol.gov/compliance/guide/garnish.htm

Your state may have additional rules.

[mbjr73]

Thanks LadyinRed,