If you have fallen behind with debt payments, the creditor may ask a court to garnish your wages. If the court agrees, it will tell your employer to pay part of your wages directly to the creditor to settle your debt.
If your creditor is threatening to garnish your paycheck, it helps to understand what the federal and Mississippi laws have to say about the process. For instance, the Consumer Credit Protection Act (CCPA) provides that the creditor can only withhold up to 25 percent of the debtor’s disposable income.
Mississippi wage garnishment basics
Under Mississippi law, you have to be made aware before your paycheck can be garnished. Most often, a judgment will be issued against you before the garnishment. This means that your creditor must sue and win the case against you. Once the judgment has been made, your creditor will use it to obtain a garnishment order.
While a judgment is a requirement in most cases, it is important to understand that there are instances when your wage may be garnished without one. This often applies if you default on priority debts like child support, student loans and taxes.
Mississippi wage garnishment statute
Every creditor must strictly comply with all the components of the state’s garnishment statutes. These include adhering to important deadlines and duly mailing the legal papers. For instance, Mississippi law protects debtors from immediate garnishment. This statute requires the creditor to wait 30 days after serving the notice before they can garnish their paycheck. During this period, the debtor may work out a repayment plan to avoid garnishment altogether. Additionally, this law limits the amount that may be garnished to 25 percent of the disposable earnings.
A creditor can, by law, garnish your wage. Understanding how Mississippi wage garnishment laws work can help you safeguard your rights and interests when your paycheck is about to be garnished.