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. Federal law limits how much can be garnished from wages.

2. How is Garnishment Calculated?

The calculator uses the federal wage garnishment formula:

Where:

• \( Disposable \) — Disposable income (after legally required deductions)
• \( Debt \) — Total debt owed
• 25% — Maximum percentage that can typically be garnished

Explanation: The garnishment amount is either 25% of disposable income or the total debt owed, whichever is less.

3. Legal Limits on Garnishment

Details: Federal law limits wage garnishment to the lesser of 25% of disposable income or the amount by which disposable earnings exceed 30 times the federal minimum wage.

4. Using the Calculator

Tips: Enter your disposable income (after taxes and required deductions) and total debt owed. The calculator will determine the maximum garnishment amount under federal law.

5. Frequently Asked Questions (FAQ)

Q1: What counts as disposable income?
A: Disposable income is what remains after legally required deductions like federal, state, and local taxes, Social Security, unemployment insurance, and state employee retirement systems.

Q2: Are there exceptions to the 25% rule?
A: Yes, different limits apply for child support (up to 50-60%), alimony, bankruptcy, or student loans.

Q3: Can states have different garnishment limits?
A: Yes, some states have stricter limits than federal law, and those laws apply when they're more protective of the debtor.

Q4: What types of income can be garnished?
A: Wages, salaries, commissions, bonuses, and pension/retirement payments can typically be garnished, while Social Security and disability usually have more protection.

Q5: How can I stop wage garnishment?
A: Options include paying the debt in full, negotiating a settlement, filing for bankruptcy (in some cases), or challenging the garnishment in court if proper procedures weren't followed.