What happens if your wages are garnished but you're already living paycheck to paycheck?
Wage garnishment can severely impact individuals already living paycheck to paycheck. It reduces disposable income, making it challenging to cover essential expenses. The emotional and financial toll can lead to further debt and stress.
- ▪Wage garnishment can occur if a creditor wins a judgment against you for unpaid debts.
- ▪Federal law limits the amount that can be garnished, typically to 25% of disposable earnings.
- ▪Losing part of your paycheck can lead to missed payments and additional fees, worsening financial strain.
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MoneyWatch: Managing Your Money What happens if your wages are garnished but you're already living paycheck to paycheck? We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Angelica Leicht Angelica Leicht Senior Editor, Managing Your Money Angelica Leicht is the senior editor for the Managing Your Money section for CBSNews.com, where she writes and edits articles on a range of personal finance topics. Angelica previously held editing roles at The Simple Dollar, Interest, HousingWire and other financial publications.
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