What is a levy on wages?

A wage levy is a legal action taken by a creditor to collect what is due in the form of payment from a debtor. In the state of Louisiana, a creditor may take a wage levy in order to collect money owed to them. This happens when a court issues a writ of garnishment, which is then served to the debtor’s employer. This instructs the employer to withhold a certain amount from the debtor’s wages each pay period, which will then be sent to the creditor. The amount of the wage levy is calculated by the court and is often based on the debtor’s income and the amount of the debt owed. As outlined by law, the amount of wages that can be taken in a single pay period by a wage levy cannot exceed 25 percent of the debtor’s disposable earnings. The employer is then required to send the funds to the court, which will then in turn disperse the money to the creditor. A wage levy can be a difficult situation for any debtor to face. It can make it difficult to meet their financial obligations, and can in some cases lead to a debtor being unable to pay for basic necessities such as food and housing. Because of this, it is important for all debtors in Louisiana to understand their legal rights and seek assistance if they find themselves in a situation where they may face a wage levy.

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