1. What is Loan Garnishment?

Loan garnishment is a legal process where a portion of a person's earnings is withheld by an employer for the payment of a debt. This typically occurs after a creditor obtains a court order.

2. How Garnishment is Calculated

The calculator uses standard garnishment formulas:

Where:

• \( \text{Loan Debt} \) — Total outstanding loan amount
• \( \text{Disposable Income} \) — Earnings after legally required deductions
• \( \text{Legal Percentage} \) — Varies by jurisdiction (typically 15-25%)

3. Legal Limits on Garnishment

Federal Limits: The lesser of 25% of disposable income or the amount by which weekly income exceeds 30 times the federal minimum wage.

State Limits: Many states have their own garnishment limits which may be more restrictive than federal law.

4. Using the Calculator

Tips: Enter the total loan debt amount, your disposable income (after taxes and other required deductions), and select the type of garnishment (federal or state).

5. Frequently Asked Questions (FAQ)

Q1: What debts can be garnished?
A: Common garnishments include student loans, child support, tax debts, and court-ordered judgments.

Q2: How much can be garnished from my paycheck?
A: Typically 15-25% of disposable income, depending on the debt type and jurisdiction.

Q3: Are there any protections against garnishment?
A: Certain types of income like Social Security are generally protected, and minimum income levels apply.

Q4: How long can garnishment continue?
A: Until the debt is paid in full or otherwise resolved through legal means.

Q5: Can I negotiate to stop garnishment?
A: Yes, many creditors will negotiate payment plans to stop garnishment proceedings.