Can You Have Two Garnishments at Once?

A garnishment is a legal procedure where a portion of an individual’s earnings or assets is withheld to satisfy a debt. This action is typically initiated by a creditor through a court order or an official notice to a third party, such as an employer or bank. It is possible to have multiple garnishments active simultaneously, which adds complexity to financial management. Understanding the different types of garnishments, their limits, and priority rules is essential.

Understanding Different Garnishment Types

Garnishments fall into two categories: wage garnishments and bank account garnishments. A wage garnishment is an ongoing deduction from an individual’s paycheck, mandated by a court order or official notice, to repay various types of debt. These can include consumer debts like credit card balances or medical bills, child support, defaulted student loans, and unpaid taxes. Employers are directed to withhold a portion of the employee’s disposable earnings, which are the wages remaining after legally required deductions like federal, state, and local taxes, and Social Security.

In contrast, a bank account garnishment, also known as a bank levy, involves a direct seizure of funds from a debtor’s bank account. This is a one-time event where the bank freezes funds up to the amount owed and transfers them to the creditor. While wage garnishments are continuous until the debt is satisfied, bank account garnishments act as a snapshot, collecting available non-exempt funds at the moment the levy is executed.

Federal and State Limits on Garnishments

Federal law, primarily the Consumer Credit Protection Act (CCPA), establishes limits on the amount of disposable earnings that can be garnished. For most consumer debts, the maximum amount that can be withheld is the lesser of 25% of an individual’s disposable earnings, or the amount by which their disposable earnings exceed 30 times the federal minimum wage.

Different limits apply to specific types of debts. Child support and alimony garnishments can be higher, allowing up to 50% of disposable earnings to be withheld if the individual is supporting another spouse or child. This percentage can increase to 60% if there is no other spouse or child being supported, with an additional 5% possible if payments are more than 12 weeks in arrears. Federal student loan garnishments are limited to 15% of disposable earnings. Federal tax levies can result in higher withholding percentages than general consumer debts and are not subject to the same CCPA limits.

States can enact their own garnishment laws, which may offer greater protection to debtors by imposing stricter limits than the federal CCPA. When both federal and state laws apply, the law that results in the smaller garnishment amount is observed.

Order of Priority for Multiple Garnishments

When an individual faces multiple garnishments, a specific hierarchy dictates which debt receives payment first, especially if the combined amounts exceed legal limits. Child support and alimony orders are given the highest priority over other types of garnishments. This means funds are typically allocated to these obligations before any other debts, ensuring familial support is addressed. If there are multiple child support orders, the most recently issued order sometimes takes precedence.

Following child support, federal debts, such as tax levies from the Internal Revenue Service (IRS) or defaulted federal student loans, receive high priority. Federal tax levies, for example, take precedence over all other debts except for family support obligations. Federal student loan garnishments also hold a strong position in the payment hierarchy.

For multiple consumer debt garnishments, the “first in time, first in right” principle commonly applies. This means that among similar types of debts, the garnishment order received first by the employer or financial institution will be satisfied before subsequent orders. However, state laws can influence this order, and some states may have specific rules for handling simultaneous garnishment orders or for prioritizing certain types of creditors within consumer debt categories. If the total amount of all garnishments exceeds the legal maximum, payments are made according to this established priority, and lower-priority garnishments may be delayed or receive no funds until higher-priority debts are satisfied or the available disposable earnings allow.

Navigating Multiple Garnishment Notices

Receiving multiple garnishment notices requires careful attention to understand the situation and one’s rights. Upon receiving a notice, it is important to identify the type of debt, such as consumer debt, child support, student loan, or tax liability, as each has different rules and limitations. Individuals should also confirm the validity of each garnishment order, ensuring it is legitimate and accurately reflects an outstanding debt. This can involve reviewing court documents or official agency notices.

Regularly checking pay stubs and bank statements is important to verify that deductions are occurring as specified in the garnishment orders and that the correct amounts are being withheld. If there are discrepancies or questions about the garnishment, individuals should seek clarification directly from the garnishing party, their employer’s payroll department, or their bank. These entities can provide details regarding the amount being withheld, the remaining balance, and the specific order being enforced. For general information on consumer protection or debt collection practices, resources from consumer protection agencies or legal aid services may be available.