United States Code: TITLE 15 - Commerce and Trade: Consumer Credit Protection

The Center For Debt Management: United States Code: TITLE 15 - Commerce and Trade: Consumer Credit Protection
United States Code: TITLE 15 - Commerce and Trade: Consumer Credit Protection

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TITLE 15–COMMERCE AND TRADE

CHAPTER 41–CONSUMER CREDIT PROTECTION

Sub Chapter II – Restrictions on Garnishment

Sec. 1673. Restriction on garnishment

(a) Maximum allowable garnishment

Except as provided in subsection (b) of this section and in section 1675 of this title, the maximum part of the aggregate disposable earnings of an individual for any workweek which is subjected to garnishment may not exceed

(1) 25 per centum of his disposable earnings for that week, or (

2) the amount by which his disposable earnings for that week exceed thirty times the Federal minimum hourly wage prescribed by section 206(a)(1) of title 29 in effect at the time the earnings are payable, whichever is less. In the case of earnings for any pay period other than a week, the Secretary of Labor shall by regulation prescribe a multiple of the Federal minimum hourly wage equivalent in effect to that set forth in paragraph (2).

(b) Exceptions

(1) The restrictions of subsection (a) of this section do not apply in the case of

(A) any order for the support of any person issued by a court of competent jurisdiction or in accordance with an administrative procedure, which is established by State law, which affords substantial due process, and which is subject to judicial review.

(B) any order of any court of the United States having jurisdiction over cases under chapter 13 of title 11.

(C) any debt due for any State or Federal tax.

(2) The maximum part of the aggregate disposable earnings of an individual for any workweek which is subject to garnishment to enforce any order for the support of any person shall not exceed--

(A) where such individual is supporting his spouse or dependent child (other than a spouse or child with respect to whose support such order is used), 50 per centum of such individual's disposable earnings for that week; and

(B) where such individual is not supporting such a spouse or dependent child described in clause (A), 60 per centum of such individual's disposable earnings for that week; except that, with respect to the disposable earnings of any individual for any workweek, the 50 per centum specified in clause (A) shall be deemed to be 55 per centum and the 60 per centum specified in clause (B) shall be deemed to be 65 per centum, if and to the extent that such earnings are subject to garnishment to enforce a support order with respect to a period which is prior to the twelve-week period which ends with the beginning of such workweek.

(c) Execution or enforcement of garnishment order or process prohibited

No court of the United States or any State, and no State (or officer or agency thereof), may make, execute, or enforce any order or process in violation of this section.

(Pub. L. 90-321, title III, Sec. 303, May 29, 1968, 82 Stat. 163; Pub. L. 95-30, title V, Sec. 501(e)(1)-(3), May 23, 1977, 91 Stat. 161, 162; Pub. L. 95-598, title III, Sec. 312(a), Nov. 6, 1978, 92 Stat. 2676.)

Amendments

1978--Subsec. (b)(1)(B). Pub. L. 95-598 substituted ``court of the United States having jurisdiction over cases under chapter 13 of title 11'' for ``court of bankruptcy under chapter XIII of the Bankruptcy Act''.

1977--Subsec. (b). Pub. L. 95-30, Sec. 501(e)(1), (2), designated existing provisions as par. (1) and existing pars. (1), (2), and (3) as subpars. (A), (B), and (C) thereof, substituted ``for the support of any person issued by a court of competent jurisdiction or in accordance with an administrative procedure, which is established by State law, which affords substantial due process, and which is subject to judicial review'' for ``of any court for the support of any person'' in subpar.

(A) as so redesignated, and added par. (2).

Subsec. (c). Pub. L. 95-30, Sec. 501(e)(3), inserted ``, and no State (or officer or agency thereof),'' after ``or any State''. Effective Date of 1978 Amendment Amendment by Pub. L. 95-598 effective Oct. 1, 1979, see section 402(a) of Pub. L. 95-598, set out as an Effective Date note preceding section 101 of Title 11, Bankruptcy.

Effective Date of 1977 Amendment

Section 501(e)(5) of Pub. L. 95-30 provided that: ``The amendments made by this subsection [amending this section and section 1675 of this title] shall take effect on the first day of the first calendar month which begins after the date of enactment of this Act [May 23, 1977].''

Cross References

Enforcement of legal obligations to provide child support and make alimony payments, see section 659 of Title 42, The Public Health and Welfare.

Section Referred to in Other Sections

This section is referred to in section 1675 of this title; title 5 section 5520a; title 18 section 3613; title 28 sections 3002, 3003; title 29 section 1056; title 42 sections 665, 666, 1396g-1.

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United States Code: TITLE 15 - Commerce and Trade: Consumer Credit Protection