Up to 25% of Wages Seized to Pay Past Debts!

Los Angeles, CA

Today. A new study shows just how many American lose up to 25% of their paycheck through wage garnishment to pay back debt such as credit cards, medical bills, and student loans. Wage garnishment occurs after losing a court judgment in a creditor lawsuit. ADP, the nation’s largest payroll service provider, did a 2013 study looking into the paychecks of 13 million American employees. When this study is extrapolated to the entire country, it finds 4 million workers or about 3% of the workforce had wages taken to pay consumer debts in 2013.


Some consumer debt experts consider this level of wage garnishment alarming because it represents court judgments against consumers by creditors. Given half of US states allow wage garnishment up to 25% of each paycheck, this significantly impacts the earnings of the American workers hurt by the recession.  Thankfully, judgment debt can often be settled by a qualified debt settlement attorney. If you are in trouble with debt contact a qualified debt settlement attorney and learn more about your options under the law.

Author:  Kevin Fallon McCarthy


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Kevin Fallon McCarthy

Kevin Fallon McCarthy is the McCarthy Law PLC’s managing attorney and an experienced Phoenix debt attorney. Mr. McCarthy has also worked as general counsel for a large corporation. He has corporate counsel experience in human resource matters, general corporate governance, and union class action litigation.