what is considered disposable income?

What is the name of your state? maryland. my husband is having his wages garnished due to a recent judgment. i have been told that they can garnish 25% of his disposable income. how is that figure determined? what is considered disposable income. and, please also tell me if we have any recourse when the amount they are taking out gives us nothing to pay the rent and pay our bills. i know we can file for bankruptcy, but is that the only remedy we have? my husband has cancer and we've gotten into this mess because of high medical bills.

[racer72]

Disposable income is what is left after government mandated deductions from the paycheck. If your husband's employer deducted taxes from his paycheck, his disposable income is what he brings home every payday. Also, in many states, moneys deducted from paychecks for the payment of child support is not considered part of their disposable income. This means 25% of the wages left after taxes and child support can be garnished. Disposable income is not what is left over after you pay your rent and bills. Many folks get confused over this.

so, there is no way, if the attorney and his client have already refused, to negotiate a lower amount to settle the judgment? Bankruptcy is the only way?
Thanks so much for your help.

[Ladynred]

Have you tried calling the court to find out if there is some kind of petition you can file to lower the garnishment due to hardship ??

I'd try that, its worth a try at least.