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Are insurance commissions protected wages from garnishment

 
JD 1992's Avatar
  • Answered by:JD 1992
  • Lawyer
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  • Accepted Answers: 1839
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in Consumer Protection Law

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Customer Question

Are insurance commissions protected wages from garnishment in the event I have a judgement against me. I live in SC.

 

Optional Information:
State/Country relating to question: South Carolina

Submitted: 306 days and 12 hours ago.
Category: Consumer Protection Law
Value: $25
Status: CLOSED
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Expert:  JD 1992 replied 306 days and 12 hours ago.

Are you an employee and are the commissions paid by an employer?

Customer replied 306 days and 12 hours ago.

I am an insurance agent. I broker for many comopanies and am 1099'd for my income.

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Expert:  JD 1992 replied 306 days and 12 hours ago.

You're an independent agent? If so are you a sole proprietor or do you get paid through some type of corporation?

Customer replied 306 days and 12 hours ago.

I'm a sole proprietor. Commissions are paid to me in my name

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Expert:  JD 1992 replied 306 days and 12 hours ago.

And on what kind of debt would you anticipate that someone would issue a garnishment order? Would it be a consumer debt?

Customer replied 306 days and 11 hours ago.

no, it would be from a business judgement against me personally

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Expert:  JD 1992 replied 306 days and 11 hours ago.

What type of "business judgment"? The reason I am asking is "consumer" in this context is a little broader than the common meaning and, in addition, most of the protections against garnishments are based on consumer debts.

Customer replied 306 days and 11 hours ago.

It was for a noncompete violation

Accepted Answer

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Expert:  JD 1992 replied 306 days and 11 hours ago.

Unfortunately, the exclusion for non-consumer actions is only $5000 as set forth in Section 15-41-30(A)(5) which you can see at http://www.scstatehouse.gov/code/t15c041.php . This exemption is only possible if you are not claiming a homestead exemption.

If it were a consumer transaction then the entire amounts would be exempt since commissions are the same as earnings.

However, you may want to consider forming a corporation and having the payments made to the corporation and then having the corporation pay you a salary.


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Expert TypeLawyer
Category: Consumer Protection Law
Pos. Feedback: 98.5 %
Accepts: 1839
Answered: 6/20/2012

Experience: Began practicing in 1992 and handled many cases and trials for consumers

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