What Is Wage Garnishment?
- Wage garnishment is when a creditor takes a portion of your paychecks to recoup unpaid debts.
- How much a creditor can withhold depends on what you owe, who the creditor is, and your disposable income, among other factors.
- You can dispute wage garnishment if you believe you don’t owe the debt or that the information is wrong.
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You do your best to stay on top of your debts, but sometimes you just fall behind. It can happen to anyone. You might start getting notices from creditors in the mail or phone calls trying to get you to pay what you owe. You might even look into debt relief. But before you get a chance to act, your creditor changes tactics.
One tactic they might try is wage garnishment. This is a legal process allowing a creditor to take part of your paychecks. There are rules creditors must follow when garnishing wages, and if it happens, there are ways to address it.
What Is Wage Garnishment?
Wage garnishment is when a creditor you owe gets its money back by taking it directly out of your paychecks. It usually requires a court order. There are exceptions. The IRS, for example, can seize a portion of your paychecks without going to court.
Your employer legally has to comply with a request to send a portion of your wages to your creditor until the debt is paid off. If you only have a single wage garnishment—that is, only one creditor is garnishing your checks—your employer cannot fire you, according to federal law. But if you have two or more wage garnishments, you can be fired.
How Wage Garnishment Works
Wage garnishment usually begins when your creditor sues you to collect the debt. In that case, you would likely get a notice saying that your creditor intends to take you to court for the debt.
A court evaluates the evidence to verify that you owe the debt, that it's within your state's statute of limitations, and that the creditor has the right to collect the debt. If the judge rules in the creditor's favor, the creditor can ask for a court order giving permission to garnish your wages. This would be presented to your employer to get the wage garnishment. You should get another notice letting you know your creditor is garnishing your paycheck. It should say how much gets withheld each pay period.
You do have a chance to dispute the garnishment if you feel you don't owe the debt, or if you believe the creditor is operating on inaccurate information. But you have to act quickly—you may have as few as five business days from when you receive the wage garnishment notice to dispute it. Consult with a lawyer if you're unsure what to do next.
Your employer must comply with the wage garnishment, sending a portion of your paychecks to your creditor until your debt—and possibly any legal fees you're responsible for—are paid off. Once that's done, your paychecks are all yours again.
How Much Can Creditors Garnish from Your Wages?
The amount creditors can garnish depends on the type of debt you owe. Here's a breakdown of some of the most common wage garnishments.
Federal non-tax debts
If you owe the federal government for things like student loan payments or other non-tax debts, the cap on wage garnishment is 15% of your disposable income.
Consumer debts
If you owe credit card debt, medical debt, or personal loan debt, wages can be garnished up to 25%. The amount creditors can garnish depends on the amount of income you receive after making required deductions for things like income taxes (federal, state, and local), Social Security, and Medicare.
The following table breaks down the maximum amount the creditor can garnish, depending on your disposable income and how often you're paid:
| Paid Weekly | Paid Biweekly | Paid Semi-Monthly | Paid Monthly |
|---|---|---|---|
| $217.50 or less: No wage garnishment | $435.00 or less: No wage garnishment | $471.25 or less: No wage garnishment | $942.50 or less: No wage garnishment |
| $217.50 to $290.00: Amount over $217.50 is garnished | $435.00 to $580.00: Amount over $435.00 is garnished | $471.25 to $628.33: Amount over $471.25 is garnished | $942.50 to $1,256.66: Amount over $942.50 is garnished |
| $290.00 or more: Maximum 25% garnished | $580.00 or more: Maximum 25% garnished | $628.33 or more: Maximum 25% garnished | $1,256.66 or more: Maximum 25% garnished |
It's possible that even with a court order for wage garnishment, you may not lose anything if your income is low enough. And you can’t lose your paychecks entirely to this type of wage garnishment.
Child support and alimony
Federal law says that up to 60% of your disposable income can be garnished to pay child support or alimony. This is capped at 50% if you're supporting another spouse or child. If you're more than 12 weeks behind on your debt obligations, then you can lose another 5%. This means you could lose up to 65% of your paychecks if you're not supporting another spouse or child and are 12 or more weeks overdue.
Federal tax debts
The formula for wage garnishments for federal tax debts isn't as clear-cut as the others. Part of your wages may be exempt, but how much depends on things like your tax filing status and the number of dependents you have.
Other Types of Garnishments
There are other types of garnishment your creditor may try. Some other possibilities include:
Bank account garnishment (or bank account levy): This is when a creditor gets a court order to take money from your bank account. Certain income sources (like Social Security) are exempt, up to a limit.
Tax refund garnishment: Creditors can take a piece of your tax refund, provided they get a court order.
Property garnishment: This is when a creditor seizes property you own, to sell it and recover what you owe.
You could be subject to multiple kinds of garnishment. For example, if you default on your car loan, your lender will probably repossess the car and sell it. If they don’t sell it for the full amount you owe, they could sue you for that amount and ask the court for permission to garnish your wages.
If you have any questions about these other types of garnishment or how they could affect you, it's best to consult a lawyer familiar with your state's laws.
Avoiding Wage Garnishment
It's not always possible to avoid wage garnishment if you owe the debt. But there are a few things that could work in some cases.
Pay the debt
If you have the means to pay the debt, doing so could be the quickest and most effective way to head off a garnishment.
Challenge the wage garnishment
If you believe you don't owe the debt, that the amount is wrong, or that the creditor doesn't have the right to collect from you, you could challenge the wage garnishment order or ask for an amendment. Act fast, because you usually have no more than 30 days to dispute a wage garnishment order, and in some states it may be as few as five business days. You'll probably want a lawyer's help.
Negotiate a different deal with your creditor
You may avoid wage garnishment if you can work out another deal that's satisfactory to your creditor. Maybe it involves agreeing to some sort of payment plan, or making a lump-sum payment for a portion of the debt upfront. It's ultimately up to the creditor to decide if it wants to forego wage garnishment. Once they have a court order to garnish your wages, they may be less willing to negotiate. It’s typically easier to negotiate before legal action is taken.
Keep in mind that even if the creditor garnishes your wages, that doesn't mean you can't make additional payments toward the debt if you are able to. That can get you out of debt and end the wage garnishment sooner.
Author Information
Written by
Kailey Hagen
Kailey is a CERTIFIED FINANCIAL PLANNER® Professional and has been writing about finance, including credit cards, banking, insurance, and retirement, since 2013. Her advice has been featured in major personal finance publications.
Reviewed by
Kimberly Rotter
Kimberly Rotter is a financial counselor and consumer credit expert who helps people with average or low incomes discover how to create wealth and opportunities. She’s a veteran writer and editor who has spent more than 30 years creating thousands of hours of educational content in every possible format.
How does wage garnishment work?
Wage garnishment usually begins when you get a notice from your creditor that it's pursuing wage garnishment to collect what's owed. Unless you owe a federal or state agency, your creditor has to get a court order. If they do this, your employer must withhold a portion of your paychecks until the debt is paid off.
What is the most that can be garnished from wages?
This depends on several factors, including who you owe and what your disposable income is. This is your gross income minus required deductions for federal, state, and local taxes, as well as Social Security and Medicare. In some cases, you may not have anything withheld from your checks, even with a wage garnishment order. However, if you have unpaid child support or alimony, up to 65% of your disposable income could be garnished.
What money cannot be garnished?
Some federal benefits, including Social Security and Supplemental Security Income (SSI), are exempt from wage garnishment. So are veteran's benefits. Your state may have its own set of exemptions that limit what assets creditors can access.