Ignoring outstanding IRS debt can not only take a bite out of your paycheck or bank account, but if the outstanding amount is not paid in full, the court may also issue a judgment of “wage garnishment” requiring your employer to withhold a part of your salary to pay off the debt. If you have received multiple notices from the IRS or your bank about an outstanding debt, do not bury your head in the sand, it may lead to your employer being notified of your financial situation, which can be quite embarrassing. The Law Offices of Nick Nemeth can help you deal with such problems. To give you a better understanding of what lies ahead, here we clear up five common myths about wage garnishment.
Myth: “An employer can fire an employee for a wage garnishment levy.”
Fact: If your employer has received a first court notice for levying a wage garnishment against you, the law says the employer cannot fire you. However, in the case you have more than one wage garnishment levied against you, your employer has the legal right to terminate your employment.
Myth: “The government will leave me with enough money to cover my expenses.”
Fact: The law may limit the Government to deduct 25 percent of your disposable earnings, or the amount by which disposable earnings are greater than 30 times the federal minimum hourly wage. It, however, does not warranty that they will consider your financial expenses during the wage garnishment process. The only funds exempt from garnishment are federal, state and local taxes, unemployment insurance, state employee retirement system payments, and Social Security payments.
Myth: “The government can garnish my wages for only one debt at a time.”
Fact: Do not assume your wage will not be garnished for more than one debt at a time. If you owe money to multiple entities, whether the bank, a creditor, or the IRS, the government can garnish your wages for all of them at the same time. In such a case where your wage garnishment is meant for more than one debt, you employer can also legally fire you.
Myth: “Only child support and back taxes can be collected through garnishment.”
Fact: Though the most common cases of wage garnishment include child support and back taxes to the IRS, the garnishment is not limited to them. Other debts including alimony, student loans, past due court fines, and civil monetary judgments also come under the umbrella of type of debts collected through wage garnishment in Texas.
Facing Wage Garnishment? We Can Help!
Wage garnishment poses real financial risks to you and possible embarrassment in front of your employer. If you are unable to pay the debt owed to the bank, a creditor, or the IRS, we can help you find your way out of the problem. Speak with our experienced attorneys, who are well-versed with wage garnishment laws in Texas, to help get out of the situation with minimum damage to your finances, reputation and future. To schedule a no-obligation free consultation, fill out our contact form or simply call (972) 627-4580.