Wage Garnishment Guide
Wage garnishment is one of the most common enforcement mechanisms for collecting judgments. This guide explains how it works, federal and state limits, exemptions, and strategies for both creditors pursuing collection and debtors seeking stabilization.
Education Only: This content is for educational purposes and does not constitute legal advice. Wage garnishment laws vary significantly by state. Consult with a licensed attorney for guidance specific to your situation.
What Is Wage Garnishment?
Definition
Wage garnishment is a legal process where a court orders an employer to withhold a portion of an employee's wages and send it directly to a creditor to satisfy a judgment debt.
The garnishment continues until the judgment is paid in full, the debtor negotiates a settlement, or the garnishment is otherwise terminated by court order.
Court Order
Creditor obtains garnishment order from court
Employer Withholds
Employer deducts portion from each paycheck
Creditor Receives
Employer sends withheld funds to creditor
Federal Garnishment Limits
Consumer Credit Protection Act (CCPA)
Federal law limits wage garnishment to protect debtors from losing all income. The maximum garnishment amount is the lesser of:
- •25% of disposable earnings (after taxes and mandatory deductions)
- •Amount exceeding 30 times federal minimum wage per week
Example: If you earn $1,000/week after taxes, maximum garnishment is $250/week (25%). If you earn $300/week, garnishment may be limited to protect minimum income.
Exceptions to Federal Limits
Higher garnishment percentages may apply for:
- •Child support or alimony: Up to 50-60% of disposable earnings
- •Federal tax debts: IRS has different garnishment rules
- •Federal student loans: Up to 15% without court order
State-Specific Variations
State Laws May Provide Greater Protection
Many states have laws that limit garnishment more strictly than federal law. When state and federal laws differ, the law providing greater protection to the debtor applies.
States with Lower Limits
Some states cap garnishment at 10-20% instead of 25%
States Prohibiting Garnishment
A few states (TX, PA, NC, SC) prohibit or severely restrict wage garnishment for consumer debts
Action Item: Check your state's specific garnishment laws and exemptions.
Protected Income Sources
Exempt Income Types
Certain income sources are protected from garnishment under federal and state law:
✅ Generally Protected
- • Social Security benefits
- • Supplemental Security Income (SSI)
- • Veterans benefits
- • Disability benefits
- • Unemployment benefits
- • Workers' compensation
- • Most retirement account funds (401k, IRA)
❌ Not Protected
- • Regular wages and salary
- • Bonuses and commissions
- • Freelance or contractor income
- • Rental income
- • Business income
Garnishment Timeline & Process
Creditor Files Garnishment Motion
Creditor submits garnishment paperwork to court with judgment information and employer details.
Timeline: After judgment entered
Court Issues Garnishment Order
Court reviews and approves garnishment, issues order to employer and notice to debtor.
Timeline: 1-3 weeks after filing
Debtor Receives Notice
Debtor has opportunity to file exemption claim or object to garnishment amount.
Timeline: 10-30 days to respond (varies by state)
Employer Begins Withholding
Employer calculates garnishment amount and begins deducting from paychecks.
Timeline: Next pay period after receiving order
Ongoing Payments to Creditor
Employer sends withheld funds to creditor regularly until judgment satisfied.
Timeline: Continues until debt paid or garnishment stopped
For Collectors: Using Wage Garnishment
Advantages
- ✓Consistent, automatic payments
- ✓No debtor cooperation required
- ✓Continues until judgment paid
- ✓Strong leverage for settlement
Disadvantages
- ✗Upfront filing costs ($100-500)
- ✗Requires knowing debtor's employer
- ✗Slow recovery (25% per paycheck)
- ✗Debtor may change jobs or file exemptions
For Debtors: Responding to Garnishment
Your Options
- 1.File Exemption Claim: If your income is protected or garnishment causes hardship, file exemption paperwork with the court within the deadline.
- 2.Negotiate Settlement: Offer lump-sum payment or structured plan to stop garnishment. Creditors often accept less to avoid ongoing enforcement.
- 3.Request Payment Plan: Propose voluntary payment plan that stops garnishment while satisfying judgment over time.
- 4.Consider Bankruptcy: Filing bankruptcy triggers automatic stay, halting garnishment. Consult bankruptcy attorney.
Need More Guidance?
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