Are Bonuses Always Exempt From Wage Garnishment?
Florida Statutes exempt from garnishment money paid to a debtor for personal services “whether denominated as wages, salary, commission, or bonus.” Sometimes a “bonus” is not really a bonus for personal services and is not exempt.
In one particular Chapter 7 bankruptcy case a judgment debtor owned with a partner a profitable automobile business. Each partner agreed to pay themselves a monthly salary for their work. Additional business profit was retained and then paid to the owners as “bonuses” in proportion to their equity in the business.
Last updated on May 22, 2020
About the Author
Jon Alper is an expert in asset protection planning for individuals and small businesses.