How do they figure the amount of garnishment payments?

Answer by  Arque (81)

First, you need to calculate your disposable earnings which is what you make after taxes are subtracted. Multiple the current federal minimum wage by 30 times, then calculate what 25 percent of your weekly disposable earnings is. The lesser of these two calculations will be how much of of your wages will be garnished. Sidenote: Private creditors can't garnish unemployment.

Answer by  MarkWatrous (729)

It all depends upon what state you reside in. Most states allow creditors to take 25% of your NET pay.

Answer by  CALMAN (49)

The local Court decides on what & how much funds are garnished.They determine what is owed & what is availabe to garnish to any creditors.Child support is often garnished for child support payments.Normally it is much easier to garnish wages from individuals working for government Agencies more difficult to garnish wages from private sector employees.

Answer by  patti (29325)

Title III (Consumer Credit Protection Act) limits the amount garnished in a 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."