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  1. #1
    Join Date
    Oct 2011
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    6

    Default Independent Contractors and Debt Collection Law

    My question involves collection proceedings in the State of: Arkansas

    Hi
    After months of unsucessfull job searching, I gave up and started working online doing translation work, and some affiliate marketing. My question is this:
    I dont have a fixed income, or earn very much at all in fact, so can I be garnished? DCS is trying to collect the money I owe for student loans. I can hardly afford my rent, much less the astronomical monthly payments they want me to pay. Id like to know if its possible to garnish workers like me who don't have a salary and work as an independant contractors for many different companies. (all online)

    thanks for your help.

  2. #2
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Independent Contractors and Debt Collection Law

    if they can discover whom you are doing work for, yes, they can garnish your pay. They can intercept payments made to you.

    DCS (department of child services?) for a student loan

  3. #3
    Join Date
    Oct 2011
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    6

    Default Re: Independent Contractors and Debt Collection Law

    Thank u. DCS is short for diversified collection services. Does the farnishment of independent contractors piecework top out at 15% as it does for regular salaries?

  4. #4
    Join Date
    Jan 2006
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    38,867

    Default Re: Independent Contractors and Debt Collection Law

    federal limits:

    25% of your disposable income if it’s greater than $290

    Any amount greater than 30 times the federal minimum wage: $217.50
    state limits:

    Exemption is $500 head of family; $200 if single

  5. #5
    Join Date
    Mar 2005
    Location
    Michigan
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    28,906

    Default Re: Independent Contractors and Debt Collection Law

    I believe the concern here is that the payments aren't wages, as such. The affiliate income is not related to hours of work performed, and the payment for services made to an independent contractor, whether by the job or by the hour, isn't in the form of wages.

    I expect that, if garnishment orders go out, it will be necessary to bring the matter before the court to try to make the case for an exemption.

  6. #6
    Join Date
    Jan 2006
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    38,867

    Default Re: Independent Contractors and Debt Collection Law

    Quote Quoting aaron
    View Post
    I believe the concern here is that the payments aren't wages, as such. The affiliate income is not related to hours of work performed, and the payment for services made to an independent contractor, whether by the job or by the hour, isn't in the form of wages.

    I expect that, if garnishment orders go out, it will be necessary to bring the matter before the court to try to make the case for an exemption.
    makes sense so, if true and the limit on wages is not available to limit the garnishment, wouldn't that mean that 100% if the payment might be subject to seizure?

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