An assignment of wages is the transfer of the right to collect wages from the wage earner to a creditor. The assignment of wages is usually effectuated by deducting from an employee's earnings the amount necessary to pay off a debt.
An assignment of wages should be contained in a separate written instrument, signed by the person who has earned or will earn the wages or salary. The assignment should include statements identifying the transaction to which the assignment relates, the personal status of the assignor, and a recital, where appropriate, that no other assignment or order exists in connection with the same transaction.
Many jurisdictions have enacted statutory provisions concerning wage assignments that prescribe various requisites of or conditions to the validity of assignments of wages. Compliance with these statutes is essential to make such assignments effective.
Maine Assignment of Wages Due or to Become Due is a legal process through which an individual assigns a portion of their future wages to a creditor to satisfy a debt. This type of arrangement allows creditors to secure their claims against a debtor by utilizing their future income. Maine recognizes two types of Assignment of Wages Due or to Become Due: Voluntary and Involuntary. 1. Voluntary Assignment of Wages Due or to Become Due: This type of assignment is initiated by the debtor willingly. It typically occurs when an individual is unable to repay their debts and voluntarily agrees to assign a specific portion of their earnings to a particular creditor. This agreement is usually made in writing and includes details such as the amount to be assigned, the duration of the assignment, and the creditor's information. 2. Involuntary Assignment of Wages Due or to Become Due: On the other hand, involuntary assignment occurs when a court orders the debtor to assign a part of their wages to satisfy a debt. This type of assignment usually takes place after legal action has been initiated by the creditor, such as obtaining a judgment against the debtor for failing to repay a debt. The court, recognizing the creditor's right to collect their dues, orders the debtor's wages to be assigned directly to the creditor. The Assignment of Wages Due or to Become Due provides creditors with a legal mechanism to collect their outstanding debts. By establishing an assignment, creditors gain assurance that they will receive payment from the debtor's future earnings, providing some degree of security against default. It is important to note that Maine has specific laws governing the Assignment of Wages Due or to Become Due, primarily aimed at protecting debtors from excessive wage garnishment and ensuring they have a reasonable income to sustain themselves. These laws impose limits on the percentage of wages that can be assigned and outline the priority of multiple assignments if a debtor owes money to multiple creditors. In conclusion, the Maine Assignment of Wages Due or to Become Due allows debtors to assign a portion of their future wages to creditors in order to repay outstanding debts. This arrangement can be voluntary or involuntary, and both types serve as a means for creditors to secure the repayment of debts owed to them. However, it is essential for both debtors and creditors to understand and comply with the specific legal requirements and limitations imposed by Maine state laws.
