Like civilians, service members may incur debts. Certain debts can be automatically deducted from their salary but only within the boundaries of federal law. Additionally, proper procedures must be followed to protect the service member’s rights.
Although service members are responsible for paying spousal or child support, they must also ensure they can meet their own financial needs. Understanding the correct garnishment process is crucial. This article will explain how military garnishment functions.
Contents
Defining Military Pay Garnishment
Garnishment is a legal procedure that involves collecting a military member’s debt directly from their salary or pay. In the military setting, this can include garnishing military retired pay or the service member’s active income. In certain cases, VA disability payments may be garnished to cover alimony or child support obligations.
To legally garnish a military member’s pay, a court order is required. The Defense Finance and Accounting Service (DFAS) oversees the garnishment process, ensuring that the correct amount is withheld while ensuring the service member retains sufficient income for personal needs.
Military Garnishment Limitations According to Federal Law
According to 5 CFR § 581.402 the maximum amount that can be garnished from a service member’s pay depends on their income. Generally, the maximum garnishment amounts are as follows:
- 50% or half of their income if the service member is required to pay over half the support to dependents not stated in the order
- 55% of their income if the service member is required to pay over half the support to dependents not stated in the order but has a support arrearage
- 60% of their income is the service member isn’t obliged to fund more than half the support to dependents not stated in the order
- 65% of their income is the service member isn’t obliged to fund more than half the support to dependents not stated in the order but has a support arrearage
The Department of Defense requires that the court order be certified and less than two years old when DFAS receives the request to garnish child support arrears from retired military members’ pay.
How Military Garnishment Works?
Even if your claim is valid, you cannot garnish the salary of military personnel without following the proper legal protocol. All garnishment requests must follow the prescribed procedures to ensure compliance with federal law.
Typically, garnishment documents should be submitted via mail or fax. The DFAS Garnishment Law Directorate fax number is 877-622-5930. Their address is:
DFAS Garnishment Law Directorate
P.O. Box 998002
Cleveland OH 44199-8002
Child Support and Alimony
DFAS will only garnish income for spousal or child support when a valid court order is provided. The order must specify that the employer must withhold income from that person to fulfill their legal obligations.
Spouses who need to apply for DFAS Child Support garnishment must submit their request through the proper state agency or seek the assistance of an experienced family law attorney.
A court order is also needed to stop the child support order. An authoritative entity must issue the termination order, or the original court order must indicate the expiration date.
Military personnel who have their wages garnished for child or spousal support can stop the garnishment by providing evidence that their payment obligations have been fulfilled or are no longer required, such as when a child turns 18.
Commercial Debt
When it comes to commercial debts, like health insurance premiums or normal retirement contributions, they technically can’t have your salary garnished as with child support. However, your salary may still be impacted.
Commercial creditors like banks can request an involuntary allotment to the DFAS. Members of the military community with outstanding debt are at risk, just like civilians who don’t pay their debt on time. Companies that sue active duty members and win a civil judgment can request the DFAS arrange for an involuntary allotment to pay their debt.
This process isn’t automatic. The company must complete DD Form 2653 to process the collection. DFAS involvement won’t include collecting payment in this type of case. The payments must be directly sent to the company or court.
What is DD Form 2653?
DD Form 2653, formally called an involuntary allotment application, is more than a military form requesting the government be involved in collecting a service member’s commercial debt. The creditor must provide evidence that the request is valid and applicable.
It must be proven that the debt in question wasn’t discharged because the service member declared bankruptcy, and the member with outstanding debt hasn’t sought protection under U.S. bankruptcy law.
DD Form 2653 also requires the creditor to satisfy that if the service member overpays, they must refund that individual within 30 days of discovering the overpayment. Creditors that don’t refund service members risk getting future requests denied.
How the SCRA Can Help?
Whether the debt is for child support or life insurance premiums, it can still materially affect service members’ ability to provide for themselves. Their military pay is their income, and they also need money for their daily needs.
Fortunately, the Servicemembers Civil Relief Act (SCRA) can help them manage their outstanding debt. This federal law mandates that interest rates on pre-service debts must be reduced to 6%. Select companies lower this rate to 4%. The reduced interest rate can help them better manage their debt and focus on military duty.
Final Words
Garnishment of military pay can create financial challenges. Fortunately, federal laws such as the SCRA can help lower one’s expenses. Providing evidence of active duty service is integral for activating SCRA benefits. SCRACVS can help you obtain the proof you need. Click here to sign up at SCRAVS and verify the active duty status.
FAQs
What is wage garnishment in the USA?
Wage garnishment is a legal process wherein a person’s salary is automatically deducted to satisfy payments as stated in a court order. Child support may be automatically deducted from the service member’s pay, but commercial debt must be paid directly to the creditor or court.
What is the most they can garnish from your paycheck?
The maximum amount that can be garnished from your paycheck depends on your pay grade. Generally, the maximum percentage that can be taken from your military pay is 65%.
Can you garnish military retired pay?
Yes, you can garnish the military retirement pay of veterans who owe their former spouse child support or alimony. The request must be routed through the DFAS for garnishment to be automatic.