Laws Allowing Garnishment of Wages

The other method for creditor protection is the garnishment of wages. Once a creditor’s claim is shown to be legally valid and fair in a court hearing, the creditor may receive a portion of the debtor’s wages directly from the debtor’s employer.

Laws protecting debtors are:

Laws Setting Maximum Interest Rates

Laws that set maximum interest rates are called usury laws. Usually such laws apply only to transactions involving the lending of money, not the buying of goods on credit. Also, the usury laws do not protect corporations because they are considered to be adequately protected by the abilities of their professional managers.