(a)(1) Section 303(b) of the Consumer Credit Protection Act provides
that the restrictions in section 303(a) do not apply to:
(i) Any debt due for any State or Federal tax, or
(ii) Any order of any court of bankruptcy under Chapter XIII of the
Bankruptcy Act.
(2) Accordingly the Consumer Credit Protection Act does not restrict
in any way the amount which may be withheld for State or Federal taxes
or in Chapter XIII Bankruptcy Act proceedings.
(b)(1) Section 303(b) provides the following restrictions on the
amount that may be withheld for the support of any person (e.g. alimony
or child support):
(A) Where such individual is supporting his spouse or dependent
child (other than a spouse or child with respect to whose support such
order is issued), 50 per centum of such individual's disposable earnings
for that week; and
(B) Where such individual is not supporting such a spouse or
dependent child described in clause (A), 60 per centum of such
individual's disposable earnings for that week; except that, with
respect to the disposable earnings of any individual for any workweek,
the 50 per centum specified in clause (A) shall be deemed to be 55 per
centum and the 60 per centum specified in clause (B) shall be
deemed to be 65 per centum, if and to the extent that such earnings are
subject to garnishment to enforce a support order with respect to a
period which is prior to the twelve week period which ends with the
beginning of such workweek.
(2) Compliance with the provisions of section 303(a) and (b) may
offer problems when there is more than one garnishment. In that event
the priority is determined by State law or other Federal laws as the
CCPA contains no provisions controlling the priorities of garnishments.
However, in no event may the amount of any individual's disposable
earnings which may be garnished exceed the percentages specified in
section 303. To illustrate:
(i) If 45% of an individual's disposable earnings were garnished for
taxes, and this garnishment has priority, the Consumer Credit Protection
Act permits garnishment for the support of any person of only the
difference between 45% and the applicable percentage (50 to 65%) in the
above quoted section 303(b).
(ii) If 70% of an individual's disposable earnings were garnished
for taxes and/or a Title XIII Bankruptcy debt, and these garnishments
have priority, the Consumer Credit Protection Act does not permit
garnishment either for the support of any person or for other debts.
(iii) If 25% of an individual's disposable earnings were withheld
pursuant to an ordinary garnishment which is subject to the restrictions
of section 303(a), and the garnishment has priority in accordance with
State law, the Consumer Credit Protection Act permits the additional
garnishment for the support of any person of only the difference between
25% and the applicable percentage (50-65%) in the above quoted section
303(b).
(iv) If 25% or more of an individual's disposable earnings were
withheld pursuant to a garnishment for support, and the support
garnishment has priority in accordance with State law, the Consumer
Credit Protection Act does not permit the withholding of any additional
amounts pursuant to an ordinary garnishment which is subject to the
restrictions of section 303(a).
[44 FR 30685, May 29, 1979]
