Garnishment - After 30 Times Minimum Wage

[zamber]

Below it says amount over $942.50 (30 times Federal minimum wage), will be garnished. Up to $942.50 not garnished.
Does this mean if the person makes $942.50 nothing is garnished, then he works extra and makes $100 extra ( $1,042.50 per month), will the ENTIRE $100 extra be garnished? Or does it mean a percent of that $100?
If all of the $100 is garnished, then it means the person works for free if he puts in extra hours, right?

More than $942.50 but less than $1256.66:
Amount ABOVE $942.50

$1256.66 or more:
MAXIMUM 25%

 

[quincy]

A percent of the $1042.50.

 

[zamber]

A percent of the $1042.50.

How much of the $1042.50. would be garnished, please?

 

[quincy]

Here is a garnishment of wages calculator:
https://fiscal.treasury.gov/cross-servicing/awg/awg-calculator.html
Does your wage garnishment order specify a dollar amount to be withheld or does the amount withheld have to be calculated for you each pay period?

 

[zamber]

My question is about percent of income.
I used that calculator and from what I could gather, every dollar earned over $942.50 is taken, unless the wage goes way up.
So the practical question is, shouldn't a person limit wages to $942.50 per month and not work to make $200 more because the whole $200 will be taken?

 

[quincy]

My question is about percent of income.
I used that calculator and from what I could gather, every dollar earned over $942.50 is taken, unless the wage goes way up.
So the practical question is, shouldn't a person limit wages to $942.50 per month and not work to make $200 more because the whole $200 will be taken?

No. The person does not have the entire amount earned over $942.50 taken. The amount to be garnished still cannot exceed a certain percentage of the whole.

 

[zamber]

I put in $942.50 into a garnishment calculator and it said 0 garnishment. I then added $100 to $1,042.50 and it then said that now $100 would be garnished.
If this calculator is correct, then the person would be foolish to earn another $100 because the person would be working for free for those extra hours.

Total Deductions: $0.00
Disposable Earnings: $1,042.50
25% of Disposable Earnings: $260.63
25% Disposable Earnings Amount: $260.63
Excess of 130X Federal Minimum Wage: $100.00
Wages Subject to Garnishment: $100.00
Student Loan Garnishment Amount: $100

https://goodcalculators.com/wage-garnishment-calculator/

 

[quincy]

I put in $942.50 into a garnishment calculator and it said 0 garnishment. I then added $100 to $1,042.50 and it then said that now $100 would be garnished.
If this calculator is correct, then the person would be foolish to earn another $100 because the person would be working for free for those extra hours.

Well ... yes. The wage earner would need to earn only $942.50 if he did not want to pay anything to the one who is owed money.

 

[zamber]

Well ... yes. The wage earner would need to earn only $942.50 if he did not want to pay anything to the one who is owed money.

OK, but it gets back to the original question: If the person works 30 hours and earns $942.50, then the boss walks in and offers extra time to make another $100, does the creditor get the entire additional $100 earned over the first 30 hours?
Wouldn't the debtor be wise to stop at $942.50, because by working the extra time to earn the additional $100 would mean the creditor would get the whole $100 and he would be working for free for the additional hours?

 

[quincy]

OK, but it gets back to the original question: If the person works 30 hours and earns $942.50, then the boss walks in and offers extra time to make another $100, does the creditor get the entire additional $100 earned over the first 30 hours?
Wouldn't the debtor be wise to stop at $942.50, because by working the extra time to earn the additional $100 would mean the creditor would get the whole $100 and he would be working for free for the additional hours?

It is not "working for free." It is working to pay off a debt that is not going to go away until it is paid.

So, to my way of thinking, the more work and more money the better.

 

[zamber]

It is not "working for free." It is working to pay off a debt that is not going to go away until it is paid.

So, to my way of thinking, the more work and more money the better.

I am asking this question in regard to unpayable student loans debt, as in the original amount was $50,000, the person paid back $100,000, and the balance is owed is now $200,000! At some point, people just give up. This scenario is more common than people think.
So, I guess the answer is the extra $100 is taken by the creditor so the debtor should not work the extra time.

 

[quincy]

I am asking this question in regard to unpayable student loans debt, as in the original amount was $50,000, the person paid back $100,000, and the balance is owed is now $200,000! At some point, people just give up. This scenario is more common than people think.
So, I guess the answer is whole extra $100 is taken by the creditor so the debtor should not work the extra time.

What kind of student loan?

 

[zamber]

Federal

 

[quincy]

Federal

Have you looked into the student loan forgiveness programs?

I know the government has mucked them up a bit of late but, for the type of debt you have, it is worth exploring this option.

Are you working full time (30 hours+)?