A wage assignment is an agreement between you and someone you owe money to, called the creditor, that allows them to take money out of your paycheck to pay for what you owe.
If you are 40 days late in paying a creditor and have agreed to a wage assignment, the creditor can have your employer start taking money out of your paycheck. They do this by sending a "Notice of Intent to Assign Wages" to you and your employer by registered or certified mail. The creditor does not have to go back to court to do this. They can do this beginning 20 days after you receive the notice.
The amount a creditor can take from your paycheck is whichever amount is less between the following 2 numbers:
- 15% of your total wages, salary, commissions, and bonuses for any workweek; or
- The amount by which your take-home pay (after taxes and other withholdings) for a week is greater than $371.25 per week.
You can stop a wage assignment at any time without any reason. If you don't want the deduction to happen, you can notify the creditor in writing that you are canceling the wage assignment.
Length of a wage assignment
A wage assignment is good for 3 years from the date you signed the wage assignment. But, if you changed jobs after you signed the wage assignment, the wage assignment is only good for 2 years from the date you signed the wage assignment.
If a creditor tries to collect money from your paycheck after the time period expires, you should talk to a lawyer. You might be able to sue the creditor in court.
Updated: August 2017