What Can Be Done Right Now to Fix the Legal System for Debt Collection [PSMag.com]

Samantha Sangenito 10/13/154:00 AM

Laws governing debt collection lawsuits and garnishments are often antiquated, poorly thought out, and place the burden on debtors to know their rights. Below are ideas for commonsense reforms.

LOWER HOW MUCH CAN BE TAKEN FROM DEBTORS' WAGES

The federal law limiting wage seizures to 25 percent of after-tax income passed in 1968. Lawmakers appear to have pulled this percentage out of a hat. Some states protect more of a worker’s pay—and four (Texas, Pennsylvania, and the Carolinas) prohibit garnishment for most debts—but most allow the federal level.Federal surveys show that low-income workers can’t afford to lose a quarter of their pay.

[For more of this story, written by Paul Kiel, go to http://www.psmag.com/politics-...-for-debt-collection]

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LOWER HOW MUCH CAN BE TAKEN FROM DEBTORS' WAGES

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