GUIDE TO GARNISHMENTS

Until 1969, collectors used these techniques even before obtaining judgments on the underlying debts. In 1969 the Supreme Court struck down a state pre-judgment garnishment statute as unconstitutional on its face. The practical result is that garnishments today are used to enforce only post-judgment debts.

Until 1969, collectors used these techniques even before obtaining judgments on the underlying debts. In 1969 the Supreme Court struck down a state pre-judgment garnishment statute as unconstitutional on its face. The practical result is that garnishments today are used to enforce only post-judgment debts.

Post-judgment garnishments must still comply with federal due process standards. The major due process concern is to allow debtors to assert that certain of their assets are exempt from execution, and thus may not be garnished. In addition, wage garnishments must comply with the federal Consumer Credit Protection Act's protection of a portion of earnings from garnishment, the state law establishing garnishment procedures, and any other state restrictions, e.g. wage and personal property exemptions. Other federal laws protect federal benefits from garnishment, e.g. veteran's benefits, social security benefits, ERISA pension plans, and proceeds of guaranteed student loans. State laws may also protect wage and welfare benefits. A creditor's right to garnish or attach a joint bank account may be limited by the state determinations of the debtor's interest in the account.

The following chart summarizes the exemption required under federal law.

Disposable Income Protected From Garnishment
By 15 U.S.C. 1673(a)
After March 31, 1991

WEEKLY

BIWEEKLY

BIMONTHLY

MONTHLY