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Discussion in 'Credit Talk' started by kenny, Feb 17, 2001.
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What the company is referring to a garnishment of wages. They serve your place of employment with a letter stating to deduct so much from your wages for unpaid payments. I run the accounting/payroll office for our organization and I have received letters from the courts requesting us to deduct so much over a certain period of time for an employee. Usually they are unpaid child support payments or court fines. I have yet to see one for unpaid loans or credit card payments although I am sure it is possible. If the debt is yours and you know you owe the money I would contact the court to see if there was something you could do. Hope this helps.
I don't know where you live but in most places they serve a writ of garnishment on your employer telling them to withhold a certain amount from each paycheck. In Arizona they have a worksheet the employer fills out but basically it is 25 % of the amount above minimum wage. I would contact the creditor and make arrangements.
As far as I know most states allow it (wage garnishment) for up to 25% of a pay check.