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    Loans & Debt

    Wage Garnishment

    A court-ordered process where a portion of wages is withheld to repay a debt.

    What It Means

    Garnishment usually requires a creditor to obtain a judgment first, except for tax debts, federal student loans, and child support, which can garnish without one. Federal law limits garnishment to 25% of disposable income or the amount above 30 times the minimum wage, whichever is less. Some states offer additional protection.

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