Gunther wins a $25,000 judgment against Krissa, and Krissa refuses to pay. Krissa works for Iniversal Electronics. Gunther obtains a postjudgment writ of garnishment from the court ordering Iniversal Electronics to pay 25 percent of Krissa's weekly disposable earnings directly to Gunther. However, Gunther is not satisfied with this, and he asks the court to increase Krissa's pay deduction to 50 percent, which the court refuses to do. Which federal Act allows Krissa to retain 75 percent or more of her earnings in a writ of garnishment?

Question

Quizplus · Accepted Answer

Title III of the Consumer Credit Protection Act limits the amount that can be garnished from an employee's disposable earnings to 25% of their weekly earnings or the amount by which those earnings exceed 30 times the federal minimum wage, whichever is less. This means that Krissa would be allowed to retain at least 75% of her earnings, as long as she earns more than 30 times the federal minimum wage. The other acts listed (Fair Credit Reporting Act, Fair Credit Billing Act, and Fair Debt Collection Practices Act) do not pertain to wage garnishment limits.

Gunther Wins a $25,000 Judgment Against Krissa, and Krissa Refuses