Which statement about wage-garnishment exemptions is accurate?

Which statement about wage-garnishment exemptions is accurate?

• A. Exemptions are determined by the creditor
• B. Exemptions apply only to corporate debt
• C. Exemptions are statutory limits that protect a portion of wages from garnishment; exemptions vary by state and debt type
• D. Exemptions guarantee full wage payment in all cases

Answer: (C)

Wage-garnishment exemptions are statutory limits that protect a portion of earnings from garnishment. These limits are set by law and can differ by state and by the type of debt involved, because states tailor how much of a worker’s income must be left free to cover living expenses and how different debts are treated. In practice, a portion of wages is shielded from garnishment, while the remainder can be taken up to the legal cap for that debt type. This isn’t determined by the creditor, and exemptions aren’t limited to corporate debt—many kinds of debt can be subject to garnishment with exemptions applying accordingly. They also don’t guarantee full wage payment in all cases since only a portion of wages is protected and garnishment can still occur up to the legal limit.

Wage-garnishment exemptions are statutory limits that protect a portion of earnings from garnishment. These limits are set by law and can differ by state and by the type of debt involved, because states tailor how much of a worker’s income must be left free to cover living expenses and how different debts are treated. In practice, a portion of wages is shielded from garnishment, while the remainder can be taken up to the legal cap for that debt type.

This isn’t determined by the creditor, and exemptions aren’t limited to corporate debt—many kinds of debt can be subject to garnishment with exemptions applying accordingly. They also don’t guarantee full wage payment in all cases since only a portion of wages is protected and garnishment can still occur up to the legal limit.