Garnishment is a legal remedy authorized by a court order, requiring your employer to withhold part of your wages and to send that money to one of your creditors for a debt you owe.
What Kinds of Income Can Be Garnished?
Salary
Commissions
Hourly, daily, or weekly wages
Bonuses
Income from a pension or retirement plan
Are All States The Same?
There are differing amounts that can be garnished by creditors in each state. In Indiana, wage can be garnished for child support, alimony, taxes, and federal student loans in addition to personal debts.
How Much of My Income Can Be Garnished in Indiana?
The maximum part of your "aggregate disposable earnings" for the work week that can be garnished is the greater of:
- 25% of disposable income OR
- The amount of disposable earnings exceeds 30 times the federal minimum hourly wage. Note: For child support, a much higher percentage of income can be garnished.
Can More Than One Creditor Garnish My Income?
Yes, But, once the limit has been reached (the 25% or the excess over 30x min. wage), there may not be any left for a second or third creditor to garnish!
Can I Be fired Because My Employer Has Been Ordered to Garnish My Wages?
The law prohibits employers from firing employees who have only one creditor garnishing their wages.
That protection may not hold true if a second or third court order is issued for garnishment.
However, Indiana is an "employment at will" state. It may be difficult to prove you were fired solely on the basis of wage garnishment.
Got More Questions? WE'VE GOT ANSWERS!
It's crucial to obtain expert legal advice. Wage Garnishment is a very serious matter.
CALL TODAY TO SET UP A FREE, NO-OBLIGATION MEETING AND GET THE ANSWERS YOU NEED!
Call toll free 1-800-779-3900.
