What Exactly Is Wage Garnishment?
Wage garnishment is a sort of debt collection in which a creditor takes a percentage of your wage to pay off a past-due debt. Creditors often initiate wage garnishments since they may be paid in cash. Creditors in Mississippi often need a money judgement against you to garnish your earnings. They obtained this judgement by filing a lawsuit against you and bringing you to court. The wage garnishment procedure and the amount that may be garnished are primarily determined by state law.
In Mississippi, who has the authority to garnish my wages?
Creditors, debt collectors, and debt buyers in Mississippi may all seize your wages if they have a valid money judgement against you. Banks, credit card firms, hospitals you owe medical expenses to, retailers who offered you a store credit card, and private loan servicers are all examples of creditors.
The Internal Revenue Service (IRS), which is in charge of collecting federal taxes, as well as federal student loan servicers and parents who owe child support, may garnish your income without a court order. The Mississippi Department of Revenue may garnish your salary to pay state back taxes without a court order. All of these unique loans are subject to unique restrictions.
Are garnishments deducted before or after taxes?
Ordinary garnishments are collected from your net income after mandatory deductions such as Social Security and state and federal taxes. Garnishments on non-tax obligations, such as student loans and government debts, on the other hand, are deducted from your gross income. Both child and spousal support are deducted from your gross income.
Can Your Wages be Taken Without Notice?
The basic answer is no. For your earnings to be garnished, your creditors must first file a lawsuit against you. If you lose the case, a copy of the court order will be provided to your employer. Your employer must then inform you of the garnishment and withhold a percentage of your income to pay your creditor.
Are There Any Limitations to the Garnishment?
Even if a creditor gets a court order garnishing your salary, it cannot take your whole paycheck. To guarantee that you have enough money to live on, Mississippi law restricts wage garnishment to the lesser of 25% of your disposable income or 30 times the federal minimum wage. Disposable earnings are what remains after taxes and other deductions.
It also protects you from instant garnishment. Creditors must wait 30 days after serving you with a garnishment order before taking the permitted percentage of your wage. A strategy to pay off debt and avoid the procedure may be worked up during this period.
Since the law restricts wage garnishment at 25% of your disposable income, if one creditor garnishes 20% of your earnings, another creditor may only garnish 5%.
Can a Credit Card Company Garnish Your Wages?
Yes, but they must first go to court before garnishing pay. In most cases in Mississippi, creditors may only garnish your wages or bank accounts if they obtain a judgement or other court order against you. A judgement is the ultimate decision of a court made at the conclusion of a litigation.
How Can I End a Wage Garnishment On a Credit Card?
In most cases, declaring bankruptcy is the only option to permanently end the garnishment. If the garnishment is for an unsecured obligation, such as a credit card, the debt will be discharged in bankruptcy, and you will no longer be garnished for that amount.