What is a levy on wages?

A wage levy is a process in which a creditor is able to take money from your paycheck to pay off a debt you owe them. This is a legal process that happens under the Debtor and Creditor Law in California. In order to do this, the creditor must first obtain a court judgment against you. Once this happens, the creditor can then request a wage levy from your employer. A wage levy is when the creditor may take up to 25% of your wages. This is done by your employer receiving a court-issued notice. The notice will specify the total amount of money that the creditor is owed, as well as how much of your wages will be withheld. Your employer is then legally obligated to withhold the amount being levied each pay period and send it to the court, who then sends the money to the creditor. It is important to note that there are some limits to how much a creditor can take from your wages. The creditor can only take up to 25% of your disposable income, and the amount taken must also be limited to what is necessary to pay off the debt. This means that the money taken cannot exceed the amount you owe. In addition, there are a few exemptions that may limit how much a creditor can collect from your wages. This includes Social Security and public benefits such as public assistance or disability income. If you are in this situation, it is important to speak to an attorney for assistance.

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