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Simple English definitions for legal terms
wage assignment
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A quick definition of wage assignment:
A wage assignment is when a person's employer is legally required to take money out of their paycheck and give it to someone else. This can happen if the person owes money or has a court order against them. It's like the employer is told to send part of the person's paycheck to someone else instead of giving it all to the person who earned it.
A more thorough explanation:
A wage assignment is a legal process where a portion of an employee's wages are withheld by their employer to pay off a debt or obligation. This can be done voluntarily or through a court order.
1. John owes $5,000 in back child support. The court issues a wage assignment order, requiring his employer to withhold a certain amount from each paycheck and send it directly to the child support agency until the debt is paid off.
2. Mary has a credit card debt that she is struggling to pay off. She contacts her credit card company and sets up a voluntary wage assignment, where a portion of her paycheck is automatically deducted and applied towards her debt each month.
These examples illustrate how a wage assignment can be used to ensure that debts are paid off in a timely manner. By withholding a portion of an employee's wages, creditors can have a reliable source of payment and employees can avoid falling further into debt.