Q: My wages are being garnished from my check. Can I just raise my federal withholding a lot and get it back next year?
I have a garnishment from my employer. They take payroll taxes off before determining disposable income. What's to stop me from just raising my additional federal withholding by a lot to make my disposable income too low to garnish and then get huge federal refund next year?
Edit: Mark, they take your income AFTER payroll taxes. This is according to state, and federal law, and is even disclosed in my notice, which tells me how they determine disposable income. It is stated 30 x min wage which is $217.50 per week. I'm not sure where you get "gross income" from.
A: No. A creditor receives up to 25% of your gross income by wage garnishment. This is taken from each check. By increasing our withholdings, you would not impact the amount taken, and would reduce your takehome income even further. You should consider setting up a payment plan and consulting with a debt relief agency, debt defense attorney, and/or bankruptcy attorney.
A: How much is the debt? You are going to have to deal with the debt sometime. If the debt is a garden variety judgment in a MI Court you could ask for a payment plan. Why not file the bankruptcy (if you can). In a Ch. 7 you can get back everything garnished in the 90 days before filing if it totals more than $600.
Trent Harris agrees with this answer
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
