“Pay Garnishments Rise as Debtors Fall Behind” – New York Times


Good article about a disastrous situation for working poor people who are alleged to owe a debt.  Here’s an excerpt: 

     For the working poor, losing a lawsuit can mean disaster. Federal law permits creditors to seize as much as a quarter of a worker’s paycheck, though the cutoff is lower for the lowest-paid workers, and a few states also offer greater protection.

     The working poor “have difficulties maintaining payments on life’s necessities with their full paycheck,” said Angela Riccetti, a lawyer with Atlanta Legal Aid who represents indigent clients whose wages are being garnished. “You lose 25 percent of it and everything folds.”

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