Wage Garnishment Bill Introduced

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On February 19, 2019, a bill which would significantly affect a creditor’s ability to collect through wage garnishments was introduced in the House.

Under current law, the amount of an individual’s disposable earnings subject to garnishment is (in general) 25% of the individual’s disposable earnings for a week.

This bill, if passed, would change the amount subject to garnishment from 25% to 15% of the individual’s disposable weekly earnings.

Another item of note in this bill is that it would create an exemption that would permit individuals to prove that the amount of their pay subject to garnishment should be further reduced or eliminated altogether if the individual can establish that such reductions are necessary to support the individual or the individual’s family. In making its determination, the Court would review whether the earnings of the debtor following garnishment are insufficient to pay the actual living expenses of the debtor and his/her family based upon proof of such expenses incurred during the sixty days prior to the hearing.

Finally, the bill, if passed, would require clearer and more timely notice to an individual whose wages are being garnished and would give the individual more time after receiving the notice before the garnishment starts.

We’ll keep an eye on the progress of this bill, so make sure that you check our website for updates here.

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