Asset Protection...Protecting Your Wages

All states have exemptions for certain types of income that creditors cannot garnish, even if they have a judgment against you. These types of income and assets may include wages, salary, social security, welfare, or unemployment compensation. While some only apply to the "head of the household", others apply to everyone. In some states, earnings of independent contractors or sole members of corporations may not be exempt.

Under federal law, the following types of exempt income may not be forced to pay back a debt:

A.] Public Assistance
B.] Supplemental Social Security
C.] Social Security
D.] Social Security Disability
E.] Veterans Benefits
F.] Child Support
G.] Spousal Support
H.] Spousal Maintenance
I.] Workers Compensation
J.] Unemployment Insurance
K.] Railroad Retirement Benefits
L.] Black Lung Benefits

Under federal law, the Consumer Credit Prot4ecltion Act protects employees by limiting the amount of earnings that may be garnished in one week or pay period.

A way to help protect your income from creditors is to place the funds into a separate bank account, called a wage account. The purpose of the wage account is to segregate protected wages and not commingle it in accounts with money from other sources. Another way is to set up a holding company with a sole proprietor as the manager. In this scenario, your name and social security number are no where on the account.

Laws vary from state to state with regard to wage garnishment. It is important to understand your rights under the law respective to the state you reside. Retaining the services of a qualified asset protection attorney will go a long way toward ensuring that you have protected yourself in the best way possible...an Empowering Concept!