Question

Geraldine Wolfe is a supervisor at Fantastigifts. She has an annual salary of $46,500, paid biweekly, and a garnishment for consumer credit of $445.
Assuming that her disposable income is 80 percent of her gross pay per period, does the garnishment follow the CCPA?
If not, what is the maximum garnishment allowed for Geraldine’s consumer credit garnishment?

_{(Round your intermediate calculations and final answer to 2 decimal places.)}

The garnishment follows the CCPA is:
The maximum garmishment allowed is:

Answer 1

According to the given question,

a)We have to calculate the Disposable income,

Disposable income = 80% of gross pay

Where , Gross pay = $46500

Then,

Disposable income = 80% * 46500

Disposable income =$37200.

25% of disposable income = 25% * 37200

= $9300

60 times of federal minimum wage=60*$7.25 = $435

Amount by which disposable income exceed 60 times of federal minimum wages = 32,365

Therefore,

Does the garnishment follow the CCPA is NO

Maximum garnishment allowed for Geraldine = $9300

Because we consider the lower value of the disposable income