If you are attempting to collect on unpaid debts, there are many strategies you can employ to secure the money owed you. One commonly used strategy is wage garnishment. Wage garnishment allows debt collection by taking funds directly from the debtor’s paycheck before they are paid.
If you are going to use wage garnishment to collect on a debt that has gone unpaid for a significant amount of time, it is important that you understand that there are strict limitations that apply.
#1. Federal limitations for wage garnishment. First, federal law mandates the maximum percentage that can be garnished from any one person’s check. No matter where you are located in the states, you can only collect up to 25% from a debtor’s paycheck.
#2. State limitations for wage garnishment. Depending on your location, there may be further limitations that apply. Certain states offer additional protection to their citizens and it is important to research those limitations and make sure you are in full compliance.
#3. Income limitations for wage garnishment. Another important limitation to consider is how much the individual is making at their job. The state may offer additional protection from wage garnishment if a debtor meets low income guidelines.
#4. Another creditor is using wage garnishment to collect debt. If the individual who owes you money has other unpaid debts, another creditor may already be garnishing their wages. In this case, this creditor can collect the full 25% percent until the debt is fully paid. After that point, you will be able to begin garnishing that debtor’s wages.
If you are struggling to collect on unpaid debt, wage garnishment may be the next best step for your business. With the help of an experienced debt collection attorney, you can take the action necessary to collect the money owed you. To speak with one of the experienced lawyers at Howe & Associates Debt Collection Attorneys, click here or call 678-566-6800.