State Debt Management Centers

State laws often guard against unfair and deceptive business practices when it comes to debt-related matters. They also ensure a balance between creditors' and debtors' rights. These laws generally cover wage garnishment, fair debt collection practices, and debt settlement. In some cases, they also govern payday lending, rent-to-own contracts, and vehicles considered "lemons." In addition, many states have enacted laws that protect consumers in various transactions, such as receiving calls from telemarketers and auto repairs.

Laws vary widely from state to state. Wage garnishment laws, for example, limit how much money a creditor can take from a debtor's paycheck to repay a debt. But they differ from place to place. In Tennessee, creditors can garnish up to 25% of a debtor's weekly disposable income or the amount that exceeds 30 times the federal minimum wage, whichever is less. Under Arizona law, the garnishment can't exceed the lesser of 10% of your disposable earnings for that week or the amount by which your disposable earnings for that week surpass 60 times the applicable minimum hourly wage.