Is your paycheck being garnished? If so, you know how difficult this can make your overall financial situation and chances are it wasn't good to start with.
Thankfully, federal law does place a limit on how much can be taken out at any one time. When a normal garnishment has been put into place, a maximum of 25% of your income may be taken out. If you meet income requirements though, this amount may be less under the law. The major exception is child support. If you are behind on your support payments, the limit is raised to 50%.
If you wish to claim exemption from garnishment, there are a few things you should look into. Paperwork will need to be filed to prevent the garnishment from occurring and a hearing will be held.
Social Security benefits are just one of the exemptions from garnishment unless you deposit them into a bank account. If you deposit your money and wish to continue this exemption, you will need to file paperwork to prevent the garnishment.
The same is true of veterans benefits unless you owe back federal taxes, spousal or child support. Laws concerning veterans benefits do vary by state so you need to learn the laws in your area.
This is also the case with many other government benefits. If you believe your wages are being unfairly garnished, you will need to fill out some forms to stop this from happening again.
Check with your state to determine what other steps you need to take. The best way to stop a garnishment though is to speak to the creditor. He or she may be willing to work with you to get the issue resolved.
