What is a Wage Execution?
How Does a Wage Execution Work?
Let's say John Doe has stopped paying child garnishment, whereby the court seizes a portion of John's monthly paycheck and automatically gives it to his ex-wife.
Wage execution is often used to recoup , delinquent child or judgments, and the courts have the ability to garnish not just wages, but bonuses, commissions, pension income, and distributions from retirement plans. Welfare, , veterans benefits, social security income, workers compensation and child support payments generally cannot be garnished.
The Consumer Protection Act prohibits employers from firing employees because their are being garnished, though there are some exceptions.
Why Does a Wage Execution Matter?
Wage executions generally require a court order, and they can destroy a person's credit rating. It is important to that not all things can be garnished; state laws set forth the exemptions. Usually, state laws prohibit garnishing a person's assets to the extent that they leave the borrower with no way to himself or herself.