Wage Garnishment

Have questions about what wage garnishment is and how it works for judgments made against you?

By reading our complete FAQs guide, you get more answers and learn everything you need to know about wage garnishment.

Plus, get answers about how much of your wages are allowed to be garnished according to federal and state law, if bankruptcy can stop it, what employers are responsible for, and much more!

What Is Wage Garnishment?

When an individual is unable to fulfill his financial commitments, a court or government institution, such as the Internal Revenue Service (IRS) or child support agencies, can direct the employer to deduct a portion of their income and utilize it to pay off the debt.

This legal process is called wage garnishment and comes into play when an individual doesn’t pay taxes, debts, mortgages, child support, medical bills, student loans, etc.

Wage garnishment doesn’t mean that the entire earnings of the individual would be deducted from their financial obligation.

Both state and federal laws govern this legality and ensure that there is enough income to meet living expenses.

For instance, in Texas, wage garnishment is not allowed per the Texas Constitution except to pay for child support, student loans, or unpaid taxes.

It is required for the employer to notify the employee of wage garnishment via notice of the garnishment.

However, employees can legally challenge this if they feel the garnishment is improper or unfair. If an individual has multiple financial liabilities, then each debt has its own priority, and garnishment would follow that order.

For instance, child support may have precedence over mortgage debts. The amount that is garnished is limited by federal law and, in most cases, is 25% of disposable income.

Who Can Garnish Wages Without Notice?

Wage garnishment is a legal process that is directed generally by a court. However, certain government institutions are also authorized to garnish wages without a court order since these collected debts are considered in the public’s interest.

The following government institutions are allowed to garnish wages without providing notice:

• Internal Revenue Service (IRS)
• State Child Support Enforcement Agencies
• The Department of Education (student loans)

How Long After a Judgment Can Wages Be Garnished?

The period after the judgment before wage garnishment must occur varies from state to state. For instance, in California, this begins after ten days, while in some other states, it might not start until after 90 days.

We recommend you consult with an experienced attorney to help you in this case.

How Much Can Your Wages Be Garnished?

As we have already seen, in most of the debt cases, the wage garnished is 25% of disposable income. However, the actual amount can vary from state to state, from one jurisdiction to another. Further, it can also vary on the nature of the financial obligation, which is demonstrated by the following:

• Child support: 50% of disposable income. If you haven’t paid for more than three months or are not supporting another child/spouse, then 60%.
• Student loans: Up to 15% of disposable income for Federal student loans and state-funded student loans vary by state.
• Taxes: 15% to 25% of disposable income. Credit card debt: 25% of disposable income.
• Medical debt: varies from state to state

You can use a calculator (with a formula) to get a feel for how much would allowed to be garnished depending on your circumstances.

Can Credit Card Companies Garnish Your Wages?

Yes, if you have pending credit card payments that are overdue, credit card companies can approach the court and gain access to your wage via garnishment. They will notify you of the wage garnishment and can challenge it in court if you feel it is unfair.

Can a Landlord Garnish Your Wages?

Yes, landlords can garnish wages for unpaid rent or lease obligations, provided they follow the correct court procedure for garnishment. The exact process, amount, and timelines for garnishment can vary from state to state.

The landlord can only take a part of your wages, which varies from state to state where it is allowed. It is important to note that you can file a hardship exemption if you are facing financial hardship that poses a risk to food, shelter, and/or other necessities.

What Happens If an Employer Refuses to Garnish Wages?

An employer’s legal obligation is to garnish their employee’s wages after judgment. If they refuse to comply, it can be considered contempt of court, and a judge can penalize, give fines, and order other legal punishments against the employer.

Further, the employer themselves can be held liable for the debt, and the creditor can sue the employer for the amount, including interest.

Can My Wages Be Garnished to Pay Child Support?

Yes, your wages can be garnished to pay for child support. In fact, child support is considered one of the most essential financial obligations that must be fulfilled. The amount garnished is 50% of disposable income in most cases.

However, if you are behind payments for more than three months and are not currently supporting another child/spouse, then the wages garnished is 60%.

It must be noted that specific income sources, such as Social Security benefits, Supplemental Security Income (SSI), and some veterans’ benefits, are generally exempt from child support garnishment.

Can Bankruptcy Stop Wage Garnishment?

Yes, bankruptcy can stop wage garnishment. An automatic stay comes into play when an individual files for bankruptcy. This stay, issued by a court, prohibits creditors from garnishing income or any other activity to recover the debt.

However, if the creditors are able to prove in court that the individual is not truthful about bankruptcy or if they have alternate sources of income that are in addition to minimum living expenses, the court may direct wage garnishment.

How to Check Wage Garnishment Balance?

You can check your wage garnishment balance by asking your employer for that info. Pay stubs often include this balance info.

Also, some employers use third-party payroll services, such as QuickBooks, which allow their employees to log in and see the details of their paychecks, including checking their wage garnishment balance online.

Alternatively, you can contact the creditor to whom you owe money to ask them the total amount of payments they have received from you and deduct that amount from how much you initially owed in total prior to your wages being garnished to calculate the balance.

How to File an Exemption For Wage Garnishment?

You can temporarily pause the legal process of wage garnishment. You must apply for an exemption in court to put a hold on having your wages garnished. Although the exact process depends on your particular state, the general outline is as follows:

1. With the help of an attorney, understand the exemptions applicable along with the eligibility.
2. Obtain and fill all the required forms for wage garnishment exemption.
3. All supporting documents must also be provided. If applicable, send notice to creditors.
4. Wait to hear if your claim is opposed (No news is good news, as if you do not receive notice of opposition, it is considered that they do not oppose).
5. If the creditor or debt collector responds by voicing their opposition, you must attend a hearing where a judge will decide whether or not to approve your claim. The initial date is scheduled without your input and is included in the letter notifying you that your exemption for wage garnishment was opposed.
6. If the judgment is ruled in your favor, check your wage garnishment balance to ensure no unauthorized deductions have occurred since.

Does a Wage Garnishment Show Up On a Credit Report?

No, wage garnishment does not show up in credit reports. The three main credit bureaus (Equifax, Experian, and TransUnion) in the United States stopped including that information in the debtor’s credit check reports in 2017.

However, that does not mean your credit score itself will not be affected by missed payments.

Additionally, lenders can easily obtain this information and easily track your credit history for risk analysis, which will likely lead them to deny your loan request and not extend you a line of credit.

This can especially work against you if you have defaulted on any loans in the past and haven’t fulfilled the complete repayment.

Do Wage Garnishments Show Up On Background Checks?

Yes, wage garnishment can appear on certain background checks such as employment, credit and mortgage, and criminal. The type of information that appears depends on who is conducting the background check. For instance, a creditor may consider past defaulted mortgage payments more seriously than owed child support payments.

Written by Aaron R. Winston
Last Updated: September 7, 2023 2:13pm CDT