How Much of Your Wages Are Exempt From Garnishment in Ohio?
- The Consumer Credit Protection Act is a federal consumer protection law that exempts a percentage of a debtor's income from a wage garnishment. In addition, states are free to pass laws regulating wage garnishment as the state legislators deem appropriate. However, if the state's garnishment law provides fewer consumer protections than the CCPA, then the CCPA applies in the state. The CCPA acts as a floor for consumer protections. In addition, many states opt to simply follow the CCPA for wage garnishment income exemptions. Ohio follows the CCPA on the issue of what percentage of income is exempt from wage garnishment.
- The CCPA only permits a creditor to garnish 25 percent of a debtor's disposable income, defined as the income after mandatory deductions, such as federal and state taxes, are deducted. For example, if a debtor makes $1,000 a week after taxes and other mandatory deductions, then the creditor can garnish up to $250 a week of the debtor's wages. Alternatively, if a debtor makes the minimum wage, the CCPA exempts 30 times the minimum wage from garnishment. Ohio follows the CCPA in this respect. Therefore, CCPA exemptions apply to creditors and debtors in Ohio.
- In addition to the exemptions set forth in the CCPA, Ohio state law specifically exempts certain income from garnishment. Ohio state law exempts 100 percent of Social Security retirement and disability benefits. In addition, Ohio state law exempts all Ohio Works First (OWF) public benefits from garnishment as well. OWF provides cash payments to eligible Ohio working families who are struggling. Finally, Ohio state law completely exempts worker's compensation and unemployment benefits from garnishment.
- The Internal Revenue Service and the Department of Education can garnish wages through an administrative process (without going to court) for unpaid taxes and delinquent federal student loans, respectively. In addition, the Ohio Department of Taxation can similarly garnish wages administratively for unpaid state taxes. Finally, custodial parents can garnish up to 60 percent of a noncustodial parent's wages for child support, although that process must be done through court.
- Contact a qualified attorney licensed to practice law in Ohio to find out what rights and obligations you may have, if any, with regard to Ohio wage garnishment exemptions. This article is not intended to give legal advice.