garnishments

lrobb

seem to be on the increase in this economy. I recieved one yesterday that says X amount plus 21% interest from the day the loan was taken out. Am I stuck hoping the payroll dept will correctly compute the interest or can the employer deduct for the amount and let the court figure the interest?

ACU Frank

All the garnishments I receive list the subcomponents of the garnishment - principal, interest, court costs, service fees, etc. - but they add it up at the end. I pay only the dollar amount requested... after applying the state tests for the maximum available.

stilldazed

Same for us. The calculations are done by the court, and multiple deduction values are presented to match every available pay scheduled (biweekly, weekly, monthly, etc).

Did the one you have come from a court? I have seen a couple come through within the last couple of years that were mediated and the court had not yet signed off on the agreement. In researching I found that we were under no obligation to payroll deduct until the court blessed the arrangement. Otherwise it was a repayment agreement agreed to by the parties, and they were basically asking our permission to payroll deduct. We had the option to decline until the court order came through, which we did.

Peyton Irby MS

You should deduct pursuant to wage garnishment statute for the X amount which I presume will be the maximum allowable for a garnishment. Don't forget to file your answer to the garnishment. You should also contact the creditor's attorney and see if you can find out the estimated payout date and so advise the employee.
Peyton Irby
Editor, Mississippi Employment Law Letter
Watkins Ludlam Winter & Stennis, P.A.
(601) 949-4810
[email]pirby@watkinsludlam.com[/email]