Once your Florida finances start to spiral beyond your control, you may find it increasingly difficult to get things back on track. Depending on how long certain debts go unpaid, one or more of your creditors may try to file a judgment against you. If this party is successful in doing so, you may wind up losing some of your income to wage garnishment.
According to NerdWallet, your employer may have no choice but to garnish a portion of your paycheck until you pay off your debt if a creditor secures a court order stating he or she must do so.
How common wage garnishment is
Wage garnishment happens more often than you might think. According to one review of about 13 million American employees, 7.2% of them had faced wage garnishment at some point during their employment histories. Research shows that wage garnishment is also especially common among certain age groups, with 10.5% of workers between the ages of 35 and 44 having their wages garnished at some point during their careers.
How much you stand to lose to wage garnishment
If your employer has to garnish your wages, there are limits to how much he or she may take. Federal guidelines dictate that your employer may garnish either 25% of your paycheck or 30 times the amount of the current minimum wage – whichever amounts to less.
While wage garnishment takes a financial toll, it may also prove embarrassing. You may have options available to you that could help you get your finances back on track before you get to the point of having your wages garnished.
