[Code of Federal Regulations]
[Title 20, Volume 2]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 20CFR422.415]

[Page 1087-1088]
 
                      TITLE 20--EMPLOYEES' BENEFITS
 
               CHAPTER III--SOCIAL SECURITY ADMINISTRATION
 
PART 422_ORGANIZATION AND PROCEDURES--Table of Contents
 
    Subpart E_Collection of Debts by Administrative Wage Garnishment
 
Sec. 422.415  Will we reduce the amount that your employer must withhold 
from your pay when withholding that amount causes financial hardship?

    (a) General. Unless paragraph (d) of this section applies, we will 
reduce the

[[Page 1088]]

amount that your employer must withhold from your pay when you request 
the reduction and we find financial hardship. In any event, we will not 
reduce the amount your employer must withhold each payday below $10. 
When we decide to reduce the amount that your employer withholds, we 
will give you and your employer written notice.
    (1) You may ask us at any time to reduce the amount due to financial 
hardship.
    (2) If you request review of the payment schedule stated in the 
notice described in Sec. 422.405 within the 60-day period stated in the 
notice, we will not issue a garnishment order to your employer until we 
notify you of our decision.
    (b) Financial hardship. We will find financial hardship when you 
show that withholding a particular amount from your pay would deprive 
you of income necessary to meet your ordinary and necessary living 
expenses. You must give us evidence of your financial resources and 
expenses.
    (c) Ordinary and necessary living expenses. Ordinary and necessary 
living expenses include:
    (1) Fixed expenses such as food, clothing, housing, utilities, 
maintenance, insurance, tax payments;
    (2) Medical, hospitalization and similar expenses;
    (3) Expenses for the support of others for whom you are legally 
responsible; and
    (4) Other reasonable and necessary miscellaneous expenses which are 
part of your standard of living.
    (d) Fraud and willful concealment or failure to furnish information. 
(1) We will not reduce the amount that your employer withholds from your 
disposable pay if your debt was caused by:
    (i) Your intentional false statement, or
    (ii) Your willful concealment of, or failure to furnish, material 
information.
    (2) ``Willful concealment'' means an intentional, knowing and 
purposeful delay in providing, or failure to reveal, material 
information.