All states have exemptions for certain types of income that creditors cannot garnish, even if they have a judgment against you. These types of income and assets may include wages, salary, social security, welfare, or unemployment compensation. While some only apply to the “head of the household”, others apply to everyone. In some states, earnings of independent contractors or sole members of corporations may not be exempt.
Under federal law, the following types of exempt income may not be forced to pay back a debt:
A.] Public Assistance
B.] Supplemental Social Security
C.] Social Security
D.] Social Security Disability
E.] Veterans Benefits
F.] Child Support
G.] Spousal Support
H.] Spousal Maintenance
I.] Workers Compensation
J.] Unemployment Insurance
K.] Railroad Retirement Benefits
L.] Black Lung Benefits
Under federal law, the Consumer Credit Protection Act protects employees by limiting the amount of earnings that may be garnished in one week or pay period.
A way to help protect your income from creditors is to place the funds into a separate bank account, called a wage account. The purpose of the wage account is to segregate protected wages and not commingle it in accounts with money from other sources. Another way is to set up a holding company with a sole proprietor as the manager. In this scenario, your name and social security number are no where on the account.
Laws vary from state to state with regard to wage garnishment. It is important to understand your rights under the law respective to the state you reside. Retaining the services of a qualified asset protection attorney will go a long way toward ensuring that you have protected yourself in the best way possible…an Empowering Concept!
Tags: Asset,
consumer credit protection act,
creditors,
empowering,
exempt,
garnish,
income,
Protection,
public assistance,
social security,
Wages,
workers compensation
Being an entrepreneur has given me a deep appreciation for individuals who are success oriented and never give up. The drive to always “push through” is a trait of successful people.
I have been fortunate to associate myself with many successful individuals over my life. It began with my father who instilled in me the ability to step outside of the box…to create something out of nothing. He taught me the importance of integrity in business...traits that I have incorporated into the various business models I employ.
I spent the first ten years of my career in the medical field. I worked side by side with amazing individuals who put their own self-interests aside in order to nurture others back to good health. Many times I witnessed life and death situations. It was always humbling to experience the team-work that evolved around trying to save a lives.
As my career path evolved into the business world, not only could I bring those experiences into my persona, I saw a need to spread information…real information for real situations. A close friend of mine began to mentor me in aspects of blogging. He has given me incredible insight into how a blog should be developed…how to focus my passion for helping mentor people to becoming successful entrepreneurs. This passion for mentoring others began when I was a young child and continues today. It is not about me, but rather those who have influenced my life.
I am a work-out addict and a real “ski dog”. Sorry guys and gals…I do not “ride”. I live for deep powder and steep chutes. I love the feeling of looking over the edge of a steep run…feel my heart beat faster with that adrenaline rush and then “jump in”. I love golf…but I always wonder if I will ever break 100…lol! Most of all, I love my wonderful family…they are the best! Thanks for stopping by and I hope you feel empowered today.
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Martin Casper
