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Wage Garnishment Rights Explained to You

 

Your wage garnishment rights are protected by Arizona law and you should know what they are if a creditor is threatening to garnish your wages. Wage garnishment laws protect Arizona residents from unreasonable judgment collection.


You may think that if a creditor is granted the right to garnish your wages, that the creditor will garnish all of your wages. However, this is not the case. Arizona law recognizes that this would not serve either debtors or collectors or employers. A debtor who has no income left to live off of is in an unreasonable situation and is likely to quit his job since he would receive no income for his labor.

 

Instead, wage garnishment laws grant you wage garnishment rights that ensure that you continue to have enough income to live off of while the creditor succeeds in judgment collection. There are several ways these rights are ensured.

 

First of all, not all wages and income are eligible for garnishment. Wages and income exempt from garnishment include taxes, social security payments, child support and some other income. Your attorney can help you identify income and wages that are protected.

 

Secondly, your wage garnishment rights are protected by limiting creditors to garnishing no more than 25% of your non-exempt wages to pay judgment collection. So, if your remaining wages, after exemptions, come to $1,000 per week, the creditor cannot collect more than $250 per week from your employers to pay your debt.

 

Wage Garnishment Rights When You Can’t Live Off 75%

 

Wage garnishment laws protect your rights in two more ways. The first is that if garnishing 25% of your non-exempt wages leaves you with less than a reasonable amount to live off of, there is another rule for limiting how much can be garnished. The reasonable amount to live off of is determining by multiplying the current state minimum wage rate (currently $7.25 per hour) by 30 hours per week. If garnishment of 25% of your non-exempt wages leaves you with less than this amount, the garnishment is recalculated. The new calculation is your non-exempt wages minus the minimum wage figure ($7.25 x 30 hours per week). The resulting number becomes the most that the creditor can collect per pay period.

 

You can assert your final wage garnishment right by filing for bankruptcy protection. If either of the calculations mentioned above does not leave you with enough income to pay your expenses and bills, you have the option of filing for bankruptcy. If you file for either Chapter 7 or Chapter 13 bankruptcy, all wage garnishments will stop immediately. The bankruptcy proceedings are then carried out to either pay or cancel the debt in question along with your other unsecured debts.

Get more information about all the rules governing garnishment of wages in this article: Rules for Wage Garnishment-Rights You Need to Know.

 

Get more information about bankruptcy in these articles:
Chapter 7 Bankruptcy – What You Need to Know
Chapter 13 Bankruptcy – What You Need to Know

 

Wage garnishment laws and bankruptcy laws are very complicated. The best way to make sure your rights are protected is to speak with a lawyer. Get a free consultation with attorney Jeffrey P. Judge via email on our contact us page or by calling Judge Law Firm at 520-745-1500.