Your Money, Your Goals - A financial empowerment toolkit for social services programs.

With a wage garnishment order, only a certain percentage of the employees disposable earning
can be withheld. Title III of the Consumer Credit Protection Act details the limits the wage
garnishments. Generally, the amount must be the lesser of two figures:

 25% of disposable income

or

 The amount that a person earns each week over the federal minimum wage ($7.25) times

30 ($7.25 X 30 = $217.50). (Note that the federal minimum wage is subject to change.

See http://www.dol.gov for updates.)

All mandatory deductions are protected from garnishment outright:

 Federal, state and local taxes

 FICA contributions

Voluntary deductions are not protected.

Some states have additional protections. Find a legal aid organization in your community to
learn more about protections from wage garnishment.

All income and money in an account is available for garnishment unless you receive it from a
protected income source:

 Social Security Payments

 Supplemental Security Income

 Veteran’s Benefits

 Railroad Retirement Board Benefits

 Federal Employee and Civil Service Retirement Benefits

If you owe money for federal taxes, child support, or federal student loans, even protected
income sources can be garnished. If you owe state or federal debt, no court order is needed to
attach your bank account.