The maximum amount that can be garnished from your wages is controlled by federal law known as the Consumer Credit Protection Act and maximum amount that can be deducted from your wages as a result of a wage garnishment judgment by federal court is the lesser amount of the following:
· 25% of your disposable income if it’s greater than $290/week. This sum was idea to hundred and $62 but was amended to $290 on July 24, 2009.
· Any marked greater than 30 times a federal minimum wage which is $217.5. The federal minimum wage was $196.5 for July 24, 2009.
The federal minimum wage is currently $7.25 per hour.
Further purpose of calculating your disposable income for wage garnishment legally required deductions such as federal, state and local taxes, unemployment insurance Social Security deductions and state retirement deductions are subtracted from your gross income. Deductions such as health insurance, life insurance and charitable contributions are not deducted as they are not legally required.
These conditions apply regardless of the number of creditors were seeking garnishment. Normal restrictions on wage garnishment to not apply to bankruptcy court orders, federal and state tax debts, voluntary wage assignments or child and spouse support.