As for the tax intercepts...The IRS is also after my ex for him not paying them the taxes he owes. They too had a garnishment order out on him but when it was discovered that there was one for CS also, theirs was dropped because there could only be one garnishment. This is what the ex told me. I am not sure if it is true or not.
---> It's not. Well not totally.
---> The US Department of Labor in accordance with the Title III, Consumer Credit Protection Act (CCPA)
(15 USC §1671 et seq.(PDF); 29 CFR Part 870), has some pretty strict laws on wage garnishments.
1. There is a limit to the amount of "disposable" earnings (gross less federal, state and local taxes, Social Security, unemployment insurance, and state employee retirement systems) that can be garishished regardess of how many garnishments are accessed and that is 25%.
2. The exception to the above is child support and alimony wage withholding orders, bankruptcy court orders and debts due for federal and state taxes.
When it comes to child support and alimony, the maximum amount that can be withheld ranges from 50 to 65% of "disposable" earnings and is dependent on whether your have dependents and arrearages.
3. As to who's garnishment/wage withholding order is paid first, federal THEN state law governs that of which child support and alimony wage withholding orders have priority with your general creditor being last.
4. You can have multiple garnishment/wage withholding orders. To give you an example of how this is handled, let's say you have wage withholding order for child support in the amount of $400 and a garnishment order for ABC Credit Card in the amount of $6,000.
a. You earn $20/hour and are paid bi-monthly; gross less taxes is $1,200 x 25% is $300. You would withhold $200 for child support and garnish $100 for ABC Credit Card.
b. You earn $10/hour and are paid bi-monthly; gross less taxes is $680 x 25% is $170. You would withhold $200 for child support*** and garnish $0 ABC Credit Card.
*** - Remember...federal law allows you to take up to 65% of disposable earnings for child support and alimony.
If you air your dirty linen in public, expect people to comment on the skid marks!