If the debt is not for taxation, federal agencies are limited to garnishments of up to 15% per debt and this is also limited by the overall garnishment cap of 25%. So if two agencies have a non-tax debt that they are each seeking 15% garnishments over, the first garnishment could receive a full 15% garnishment of the income while the second garnishment would be limited to the leftover amount of 10%. State laws interfering with the federal agency’s right to its garnishment will be displaced by the applicable federal laws.
Remembering that Support of a Person Orders are not limited to the 25% garnishment cap, they have their own special limitations in place for them. If the debtor is supporting another spouse or dependent child, the maximum garnishment is 50% of disposable income. If the debtor is not supporting either a spouse or dependent child, it may be increased to 60%. If the support payments are more than 12 weeks overdue, then the percentage can be increased to 55% if supporting another person and 65% if not supporting another spouse or child.
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Last modified: June 18, 2007