The voluntary transfer in advance of a debtor's pay, generally in connection with a particular debt or judgment.

A debtor may negotiate with a creditor a wage assignment plan in which a portion of the debtor's paycheck is transferred to the creditor by the employer. This voluntary agreement is in contrast to GARNISHMENT, in which a creditor obtains an order from the court to collect part of a debtor's wages from the employer. Both wage assignments and garnishment are governed by statutes in most states.

A wage assignment is similar to an ASSIGNMENT FOR BENEFIT OF CREDITORS, in which the debtor assigns PERSONAL PROPERTY to a trustee. Typically, the trustee sells the property and applies the proceeds to the debt. Any amount in excess of the debt is returned to the...