Wage garnishment is a legal procedure in which a portion of an individual’s earnings is withheld by their employer to repay a debt. It typically occurs when a court or government agency issues an order requiring the employer to deduct a specific amount from an employee’s pay check.
The withheld money is sent directly to the creditor or agency until the debt is fully repaid.
Types of Wage Garnishment
- Court-Ordered Garnishment
Issued by a judge, often for credit card debt, medical bills, or personal loans. - Child Support and Alimony
These are some of the most common garnishments and can take up a larger percentage of income. - Student Loan Garnishment
The federal government can garnish wages without a court order if you default on federal student loans. - Tax De
The IRS or state tax agency can garnish wages without a court order. - Bankruptcy-Related Garnishment
Bankruptcy courts may order wage deductions to repay creditors as part of a repayment plan.
How Wage Garnishment Works
- Creditor Gets a Judgment
Most garnishments start when a creditor sues a borrower and wins a money judgment. - Court Issues a Garnishment Order
The order is sent to the debtor’s employer. - Employer Withholds Wages
The employer deducts a set amount from each pay check and sends it to the creditor. - Continuous Wages
- The debt is paid off
- A settlement is reached
- The garnishment is legally stopped
Limits on Wage Garnishment
Federal law (under the Consumer Credit Protection Act) protects a portion of your wages:
- The maximum amount that can be garnished is 25% of your disposable earnings or the amount by which your wages exceed 30 times the federal minimum wage—whichever is less.
- For child support, in60% can be garnished.
- For federal student loans and taxes, up to 15% may be taken.
Some states have stricter rules and lower limits on wage garnishment.
AND
- Notification: You must be notified before garnishment begins.
- Dispute: You have the right to dispute the garnishment in court.
- Protections Against Firing: Your employer can’t fire you for one wage garnishment.
- State Laws May Offer More Protection: Some states prohibit wage garnishment for consumer debts.
How to Stop Wage Garnishment
- Pay the Debt in Full
If possible, settle the debt outright to stop further deductions. - Negotiate with Creditors
Set up a repayment plan to avoid garnishment altogether. - File an Objection
You can dispute the garnishment in court if you believe it’s incorrect. - File for Bankruptcy
This will temporarily halt most wage garnishments through an automatic stay.
Employer
Employers who receive a garnishment order must:
- Start withholding wages promptly
- Send payments to the designated agency or creditor
- Avoid retaliating against the employee
- Follow both federal and state wage laws
Failure to comply can lead to fines or legal penalties.
Of
Although wage garnishment itself isn’t reported to credit bureaus, the events leading up to it—like missed payments, collections, or judgments—can severely impact your credit score. It’s best to resolve debt issues early to protect your financial health.
FAQs
Q1. Can any creditor garnish my wages?
Not automatically. Most creditors must win a lawsuit and get a court order. However, the government can garnish wages for student loans or taxes without going to court.
Q2. How will I know if my wages are being garnished?
You will receive a notice from the court, creditor, or your employer informing you of the garnishment.
Q3. Can I negotiate a wage garnishment amount?
Yes. You can request a court hearing to lower the amount if the garnishment causes financial hardship.
Q4. Can I be fired for having my wages garnished?
Federal law prohibits an employer from firing an employee for one wage garnishment. However, this protection doesn’t apply if there are multiple garnishments.
Q5. What income is exempt from garnishment?
Social
Q6. How long does a wage garnishment last?
Until the debt is paid off, unless you reach a settlement, file bankruptcy, or the court revokes the order.
Q7. What should I do if I can’t afford garnishment?
Act quickly—file an objection, contact a lawyer, or explore debt relief options like consolidation or bankruptcy.