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Fact Sheet #30: The Federal Wage Garnishment Law, Credit Protection Act’s Title III (CCPA)

Fact Sheet #30: The Federal Wage Garnishment Law, Credit Protection Act’s Title III (CCPA)

This particular fact sheet provides basic information concerning the CCPA’s limitations regarding the quantity that companies may withhold from a person’s profits in reaction up to a garnishment purchase, in addition to CCPA’s defense against termination as a result of garnishment for almost any debt that is single.

Wage Garnishments

A wage garnishment is any appropriate or equitable procedure through which some part of a person’s profits is needed to be withheld when it comes to re re payment of a financial obligation. Many garnishments are created by court purchase. Other kinds of appropriate or equitable procedures for garnishment include IRS or state income tax collection agency levies for unpaid fees and federal agency administrative garnishments for non-tax debts owed to your authorities.

Wage garnishments try not to consist of wage that is voluntary is, circumstances by which workers voluntarily agree totally that their companies may turn over some specified amount of the profits up to a creditor or creditors.

Title III associated with CCPA’s Limitations on Wage Garnishments

Title III for the CCPA (Title III) limits the total amount of an individual’s profits that can be garnished and protects a member of staff from being fired if pay is garnished just for one financial obligation. The U.S. Department of Labor’s Wage and Hour Division administers Title III, which is applicable in most 50 states, the District of Columbia, and all sorts of U.S.