Wage garnishment in Ohio - disposable income garnishment only : Bad Credit Advisor

Wage garnishment in Ohio - disposable income garnishment only

Q: How does wage garnishment is structured in Ohio? I heard that up to 40% of paycheck can be garnished. Is every type of income can be garnished?

A: In Ohio, creditors can garnish only 25% of your disposable income or earnings. Disposable income is the amount you earn for one pay period and after income tax is withheld. If your net earnings after taxes are $1,000 each week, your creditors can take $250 maximum which is 25% of $1,000. Not all cash payments and income can be taken from you. Here are the exemptions -

- worker’s compensation payments
- unemployment compensation benefits
- Ohio Works First cash assistance payments
- disability assistance payments
- insurance proceeds or interest in policy, including group insurance, life or endowment insurance and annuities
- spousal support and child support payments to the extent necessary for support
- Social Security and Supplemental Security Income (SSI) payments
- pensions up to at least $54,000
- veterans’ benefits

Now if another creditor gets wage garnishment judgment against you, Ohio law is as follows -

- the first garnishment order remains in effect for 182 days, if the subsequent garnishment is the same priority, or
- the first garnishment order shall immediately cease to be in effect if the subsequent garnishment is of a higher priority, such as a child support order or tax levy

Thu Jan 29, 2009 11:01PM by Tony | More in Personal Finance | Comments (0)

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