Garnishment law has been in force to improvise the mode of
collection of payment for the money due towards the federal
government or any other creditor. Garnishment law also states
wage garnishment according to which the money is deducted
directly from the person's salary after assessing the monthly
expenses vis-à-vis monthly income.
Garnishment law can be levied by any agency and is not limited
to the IRS. Any private creditor, federal government department,
or even an ex-spouse can claim garnishment of the money overdue.
Garnishment law can also be enacted towards the child support
expenses. But for all agencies apart from the government
department a court order is required to enforce the garnishment
law.
Garnishment is taken as a part of payroll process. If the person
is unable to pay the amount due as credit then the correct order
for collecting the money has been stipulated in the garnishment
law. According the garnishment law, the garnishment due to
towards the federal government is to be collected first.
Thereafter the money due towards state tax or local tax
garnishment and lastly garnishment for credit cards falls in
order.
Garnishment law in some states like Pennsylvania, North
Carolina, Texas, etc do not allow wage garnishment at all except
those related to taxes, child support, court order fines,
federally-guaranteed student loans, etc. some states allow all
kinds of garnishments even those levied by the private
creditors. In some states garnishment law states maximum 25% of
the disposable earnings to be levied as amount due towards
payment.
Garnishment law also states types of garnishment law called as
attachment. According to attachment the garnishee needs to hand
over all the money or property during the service of process of
the court. This type of garnishment as stated in the garnishment
law is required only against institutions like banks, or other
companies that face liquidated obligations in the regular course
of the business.
The money withheld from any individual's paycheck is handed over
to the creditor or the agency towards which the amounts is due.
Therefore it is suggested that while filing returns one must
include the amount garnished from the wages. The garnishment law
authorizes the pay of active, retired or reserve personnel to be
garnished towards child or spouse support. As per the
garnishment law, the garnishment says in effect until the total
amount due towards the federal government of the agency is paid
up or until the IRS department releases the garnishment.
According the wage garnishment law an individual's salary,
wages, or other income can be levied. It prevents the employee
to be fired from the job in hand. If the employer fires the
employee because of garnishment proceedings, then it is
violation of garnishment law. Also the employer can be fined for
the same. The Wage and Hour division of the Department of Labor
determines the violation of the law. The IRS does not do this
job.
About the author:
Henry Byers, Retired IRS Manager and
Garnishment Laws
expert - focusing on
Wage Garnishment
and
IRS Wage
Garnishment
