posted on 06-06-2019

Wage Assignment

Updated October 1, 2019

What it is:

A wage assignment refers to a forced payment of a financial obligation via automatic withholding from an employee's pay.

How it works/Example:

Courts can subject individuals who become delinquent in their obligations to wage assignments. In most cases, wage assignments are ordered when a person is delinquent on child support, spousal support, taxes or loans. If the obligor shows a history of nonpayment, a wage assignment can be used to automatically subtract money owed from his or her payroll without his or her consent. For example, if an individual becomes delinquent on $100 monthly loan payments, a wage assignment automatically deducts the $100 from the person's weekly or monthly paycheck and sends it to the lender.

Why it matters:

Wage assignments are frequently ordered in connection with delinquent child support payments and merchant credit balances. Though unlawful in certain U.S. states, wage assignments can be a useful, proactive method for recouping long-term unpaid debts.

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Submitted by Anonymous on Thu, 06/06/2019 - 07:18

Wage Assignment

What it is:

How it works/Example:

Why it matters:

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