Wage Garnishment

When you owe money to the government or other creditors, they can seize money from your paycheck. This is wage garnishment.

This page gives a broad overview of wage garnishment law. Wage garnishment laws vary by state. We suggest consulting an employment attorney in a city near you to give you the best advice about your unique circumstances.

What Is Wage Garnishment?

Wage garnishment is when a court or government agency orders an employer to withhold a portion of an employee’s wages to repay a debt. It is a method to ensure a debtor repays their debt. Garnishment may be the last step for a lender after other attempts to recover the debt fail.

Sometimes, a creditor can garnish a debtor’s bank account instead of their wages. Creditors can also put a lien on your property.

How Does Wage Garnishment Work?

Wage garnishment begins when a debtor does not make their debt payments. The unpaid debt can have a variety of sources, such as a medical bill, car loan, civil judgment, child support order, student loan, or unpaid state tax or local tax.

Typically, the creditor will sue the debtor in court. If successful, the court will issue a wage garnishment order. Government agencies like the Internal Revenue Service (IRS) can initiate garnishment without a court order.

After a court issues a withholding order, the debtor is the judgment debtor. The creditor is the judgment creditor.

If you are in debt, you are entitled to due process. Due process includes formal notice of the garnishment attempt and a hearing. At the hearing, you can present a defense to the court and have a lawyer represent you.

How Long Does It Take To Garnish Wages After a Court Judgment?

The wage garnishment process varies by state. Generally, the creditor must file paperwork to start the garnishment process. The court will send written notices to you and your employer.

The garnishment usually begins five to 30 business days after the judgment and lasts until repayment of the debt.

How Much of Your Wages Can a Creditor Garnish?

Income subject to garnishment includes salaries, wages, commissions, bonuses, and other lump-sum payments from an employer. Generally, support payments, such as child support, take priority over other garnishments.

Federal law limits how much of your disposable income a creditor can take. Disposable income usually means the income left after your employer deducts taxes and other deductions, such as retirement accounts. The type of debt determines the maximum amount of money a creditor can garnish.

GRAPHIC INFORMATION IS STILL GOOD

Some states follow the federal wage garnishment laws. For example, in Tennessee, a creditor can garnish the lesser of 25% of disposable earnings per week or the amount of disposable earnings exceeding 30 times the federal minimum wage.

Other state laws can lower the amount of a debtor’s wages that creditors can garnish. California limits the amount a creditor can garnish to the lesser of 25% of a debtor’s disposable income or 50% of the amount of disposable income that exceeds 40 times the state minimum wage.

What Legal Protections Do You Have?

Title III of the Consumer Credit Protection Act (CCPA) prohibits employers from firing workers with garnished earnings for one debt. It also limits the amount of wages a creditor can garnish in one week. It does not protect employees who have had their wages garnished more than once.

The federal government and states also have laws that limit:

• When garnishment is allowed
• How much money creditors can garnish per pay period
• The income that may be exempt from a garnishment order

The Fair Debt Collection Practices Act (FDCPA), makes it illegal for debt collectors to use unfair practices. This includes threatening legal action when they do not intend to sue the debtor.

How Can You Stop Wage Garnishment?

You have several options available to try to stop wage garnishment.

• Talk to your creditor to work out an alternative payment plan. You may have more options before the creditor turns to the courts for help.
• Defend the lawsuit to prevent the creditor from winning a judgment. You can try to negotiate a settlement with the creditor before the court enters its judgment.
• Challenge the judgment if it will cause you undue harm or if the creditor is improperly executing the judgment. A court may reduce the garnishment amount if you have a good faith hardship.
• Pay the debt in full.
• File for bankruptcy protection. Filing for bankruptcy may provide a temporary stay to any debt collections, including court-ordered garnishments. However, garnishment orders may not be dischargeable in bankruptcy.

How Long Can a Wage Garnishment Last?

A creditor can garnish wages until the debt is paid. Many states limit how long a judgment is valid unless it is renewed. Missing a renewal could mean your garnishment stops.

How Can You Find Out Who Is Garnishing Your Wages?

Check with your employer. They should have documentation since the creditor had to notify them to start the garnishment. Your paycheck may also have information about the garnishment.

You should also review all correspondence with creditors to ensure you did not miss a notice. Your credit report is also a place to look for information.

Finally, you can contact the IRS for information about who is garnishing your wages.

How Can You Find the Balance Left on Your Wage Garnishment?

You can contact the creditor directly to get this information. Some employers will include amounts it has garnished and how much you still owe on pay stubs. Some jurisdictions require creditors to file how much it has garnished. The court will have this information.

Can Your Wages Be Garnished Without Notice?

The employer is not required to notify you of wage garnishment in all states. However, the court should have notified you when the creditor filed suit. If a federal agency is garnishing wages, the agency should have provided notice to you.

Can an Employer Refuse to Garnish Wages?

A wage garnishment is often a court order. In most states, an employer cannot refuse to garnish wages. An employer that fails to garnish wages is possibly liable for the total debt owed to the creditor plus court costs and fees.

Can Your Wages Be Garnished for Your Spouse’s Debt?

In most cases, the person who incurred a debt solely in their name is responsible for paying it. A spouse can become liable if they jointly take on the debt or co-sign on the loan.

Debts incurred by one spouse before the marriage are separate. However, in community property states, debts taken on by one spouse after marriage are joint debts. In this case, a person can have their wages garnished for their spouse’s debts.

Can a Creditor Garnish Unemployment Benefits?

A creditor cannot usually garnish unemployment benefit payments or Social Security benefits. However, the creditor can garnish assistance payments when if a debtor owes money for child support, taxes, or student loans.

How Can an Employment Lawyer Help?

Find an employment lawyer near you if your wages are being taken away and you want to know more about your legal rights. An experienced employment lawyer can review your claim to make sure you are not taken advantage of.