Asked by Janvier Daffeed on May 14, 2024
Verified
How much may a debtor's wages be garnished, according to the Federal Consumer Credit Protection Act?
A) That a debtor must be able to keep the 75 percent of his or her weekly net income.
B) That a debtor must be able to keep 30 times the federal minimum wage.
C) That a debtor must be able to keep the greater of the following two options: 75 percent of his or her weekly net income or 30 times the federal minimum wage.
D) Nothing because the Federal Consumer Credit Protection Act does not address garnishment.
E) Nothing because there is no Federal Consumer Credit Protection Act.
Federal Consumer Credit Protection Act
Legislation that aims to ensure fair and informed use of consumer credit, including provisions on disclosure of credit terms and protecting consumers from unfair practices.
Garnished
Refers to having a portion of one’s earnings or assets seized for the purpose of debt repayment, typically by court order.
- Identify the regulations surrounding wage garnishment and understand the contributions of both federal and state legislatures.
Verified Answer
DD
Deniz DomaniçMay 20, 2024
Final Answer :
C
Explanation :
The correct answer is C because the Federal Consumer Credit Protection Act stipulates that a debtor must be able to keep the greater of the following two options: 75 percent of his or her weekly net income or 30 times the federal minimum wage. This law is designed to ensure that individuals have enough income to meet basic needs after garnishment.
Learning Objectives
- Identify the regulations surrounding wage garnishment and understand the contributions of both federal and state legislatures.
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