1. What is Wage Garnishment?

Wage garnishment is a legal procedure where a portion of a person's earnings is withheld by an employer for the payment of a debt. Common reasons include child support, student loans, taxes, or creditor judgments.

2. How Garnishment Calculation Works

The basic garnishment calculation formula is:

Where:

• Legal Percent — The maximum percentage allowed by law (entered as decimal, e.g., 0.25 for 25%)
• Disposable Income — Earnings after legally required deductions (taxes, Social Security, etc.)

3. Legal Limits on Garnishment

Federal Limits: The Consumer Credit Protection Act limits garnishment to the lesser of 25% of disposable earnings or the amount by which weekly wages exceed 30 times the federal minimum wage.

4. Using the Calculator

Instructions: Enter the legal percentage as a decimal (e.g., 0.25 for 25%) and the disposable income amount. The calculator will compute the maximum garnishment amount.

5. Frequently Asked Questions (FAQ)

Q1: What types of debts can lead to garnishment?
A: Common reasons include child support, alimony, taxes, student loans, and court judgments.

Q2: Are all wages subject to garnishment?
A: No, certain types of income like Social Security and disability may be exempt in many cases.

Q3: How is disposable income calculated?
A: It's gross income minus legally required deductions (taxes, Social Security, etc.).

Q4: Can multiple garnishments occur simultaneously?
A: Yes, but total garnishment is typically capped at 25% of disposable income for most debts.

Q5: How can I stop a wage garnishment?
A: Options include paying the debt in full, negotiating a settlement, or filing for bankruptcy in some cases.