8th Circ. Limits Garnishment Of Disability Pay

Law360, Los Angeles (October 9, 2013, 3:58 PM EDT) -- The Eighth Circuit on Wednesday ruled disability payments constitute "earnings" under the Consumer Credit Protection Act and are thus subject to limitations on garnishment, reversing a lower court's finding that a criminal defendant's disability payments aren't earnings under the statute and could therefore be garnished for restitution. 

In a precedential ruling, a three-judge appellate panel overturned an Iowa district judge's ruling that Joyce Ashcraft's disability payments aren't earnings as defined by the CCPA, concluding the plain language of the statute indicates otherwise. 

"[W]e conclude Ashcraft's disability...
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