What is a levy on wages?

A levy on wages is a collection method used by creditors to get money from a debtor who is employed. This can happen when a debtor has failed to make payments on a debt obligation. In Washington, the creditor can file a lawsuit against the debtor and get a court order that allows the creditor to collect money from the debtor’s wages. With this court order, the creditor can contact the debtor’s employer to “levy” or take a portion of the debtor’s wages each pay period until the debt is paid off. The amount of money that can be taken is dictated by state law, and in Washington, the creditor is limited to taking 25% of the debtor’s disposable income each pay period. It is important to note that if the amount deducted from the debtor’s paycheck is more than what is allowed by state law, the debtor can challenge the levy with the court. In addition, the debtor may be able to file for bankruptcy to stop the levy and get more time to pay the debt.

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What is a levy on wages?

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