After a writ of garnishment is served, what outcome occurs if exemptions apply?

• A. The employer must fire the employee
• B. The entire paycheck is garnished
• C. Withheld funds are limited by exemptions, preserving basic living expenses
• D. Garnishment cannot be challenged

Answer: (C)

Exemptions are protections that limit how much of a debtor’s wages can be taken through garnishment. After the writ is served, the employer must withhold only the amount permitted by those exemptions, leaving enough money to cover basic living expenses. This means the funds available for garnishment are reduced by the exempt portion, so the employee isn’t left penniless and still can pay for necessities like housing, food, and utilities. The rest of the paycheck can be applied toward the debt, but the exempt amount remains safe. The other options aren’t correct because exemptions aren’t about firing the employee, they don’t require the entire paycheck to be taken, and garnishments can be challenged or adjusted if needed.