1099 independent contractor / student loan garnishment
Asked Sep 20, 2008, 02:40 PM
I am a 1099 independent contractor in Arizona and one of the companies I sometimes do work for just received a notice to garnish my "wages" due to unpaid student loans. As a full 1099, I am responsible for paying my own withholdings such as the taxes, ss, etc...
I do not receive weekly, monthly or even yearly payments from any one company directly. My point being, there often are months and months that go by w/out any earned income. To make ends meet at times, I subject myself for medical testing where I earn some money when the testing is complete - anywhere from 6 weeks to 6 months. When I get work, companies pay me directly and the work is inconsistent to non-existant at times.
I own no property, my vehicle is paid for (not worth much) and I have a basic personal bank account, no assets (IRA, 401(k), savings... ).
My questions are thus:
1. As a 1099, are the companies I contract with obligated to withhold anything and if so how much?
2. Can they lien or seize my car?
3. Can they freeze/seize my bank account?
4. I work for several different companies at different times throughout the year, so can they make each company garnish my earnings?
5. If I LLC/PLLC myself, place my car and any bank accounts into a company where I don't draw any income directly, can they still make the companies garnish earned income if the LLC/PLLC is the one being paid instead of me directly?
Thank you for your advice.