Army Pay & Allowances, pay raises, pay allowances, pay charts - Army Times

Garnishment

Up to 25 percent of a service member’s paycheck can be attached by private creditors to pay overdue debts incurred while on active duty. Creditors can lay claim to bank accounts or personal property. To take part of a service member’s pay, a creditor must have a court judgment and pay all processing costs.

Military exchanges can claim up to 67 percent of service members’ pay for debts owed. Exchanges must notify customers when accounts are overdue and make other efforts to contact delinquent customers. After 90 days, they may submit requests for involuntary pay deductions.

Basic pay, enlistment and re-enlistment bonuses, incentive pay, and pay for reservists on active duty for more than 30 days can be attached. Exempt are housing and subsistence allowances and retired and separation pay.

In four states — North Carolina, South Carolina, Texas and Pennsylvania — pay cannot be seized to satisfy bad debts.

The Defense Finance and Accounting Service must give members at least 30 days’ notice before reducing paychecks. The process may be delayed if a member is deployed, assigned overseas or hospitalized.

A service member can avoid the deduction if he or she proves the debt has been paid, the creditor’s claim is false or illegal, or there is a legal obstacle to collecting the money.

Service members who have filed for bankruptcy may also be protected.

Debt counseling

Military financial and legal counselors can help service members negotiate with creditors to manage their debt. Members can use the Consumer Credit Counseling Service to work out repayment plans.

Contact: The National Foundation for Credit Counseling, (800) 388-2227; www.nfcc.org.