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Levies and garnishments: Tough questions

05/26/2011

Question: An employee who has child support withheld from his pay declared bankruptcy. We received a bankruptcy order that requires us to withhold $330 monthly. However, the Consumer Credit Protection Act says not more than 50% of an employee’s disposable pay can be withheld for child support. The bankruptcy trustee said that the 50% limit doesn’t apply, but this seems wrong to us. Who’s correct?

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