Wage garnishment is a legal process that allows a creditor to take money directly from your paycheck to pay off a debt. This can happen if you have a court judgment against you for an unpaid debt, such as a credit card balance, medical bill, or student loan
But not all creditors can garnish your wages. Some, like the IRS and child support agencies, have special rules that allow them to take money from your paycheck without a court order.
Here’s what you need to know about wage garnishment:
Who can garnish your wages?
- Creditors with a court judgment: Most creditors must sue you and get a court judgment before they can garnish your wages. This means they have to prove to a judge that you owe them money and that you haven’t been paying it back.
- The IRS: The IRS can garnish your wages without a court order if you owe back taxes.
- Child support agencies: Child support agencies can also garnish your wages without a court order if you’re behind on your child support payments.
- Student loan lenders: Federal student loan lenders can garnish your wages without a court order if you’re behind on your payments.
How much can a creditor garnish?
The amount a creditor can garnish from your wages depends on the type of debt and your state’s laws. Federal law limits the amount that can be taken to 25% of your disposable earnings or the amount by which your weekly disposable income exceeds 30 times the federal minimum wage, whichever is lower. However, your state may have stricter limits.
How to stop a wage garnishment:
There are a few ways to stop a wage garnishment, including:
- Filing a claim of exemption: You may be able to claim an exemption if you have a low income or if the garnishment would cause you undue hardship.
- Negotiating a payment plan with the creditor: You may be able to work out a payment plan with the creditor that will allow you to avoid wage garnishment.
- Filing for bankruptcy: Filing for bankruptcy will stop all wage garnishments.
What to do if your wages are being garnished:
If your wages are being garnished, it’s important to contact an attorney as soon as possible. An attorney can help you understand your rights and options, and they can help you stop the garnishment if possible.
Here are some additional resources that you may find helpful:
- The Consumer Financial Protection Bureau (CFPB): The CFPB has a website with information about wage garnishment, including how to stop a garnishment and how to claim an exemption.
- The National Consumer Law Center (NCLC): The NCLC is a non-profit organization that provides legal assistance to low-income consumers. They have a website with information about wage garnishment, including how to find an attorney.
- Your state’s Attorney General’s office: Your state’s Attorney General’s office may have information about wage garnishment laws in your state.
Frequently Asked Questions
Can a debt collector garnish my wages without a court order?
In most cases, a debt collector must have a court judgment before they can garnish your wages. However, there are some exceptions, such as the IRS and child support agencies.
How much can a debt collector garnish from my wages?
The amount a debt collector can garnish from your wages depends on the type of debt and your state’s laws. Federal law limits the amount that can be taken to 25% of your disposable earnings or the amount by which your weekly disposable income exceeds 30 times the federal minimum wage, whichever is lower. However, your state may have stricter limits.
How can I stop a wage garnishment?
There are a few ways to stop a wage garnishment, including:
- Filing a claim of exemption
- Negotiating a payment plan with the creditor
- Filing for bankruptcy
What should I do if my wages are being garnished?
If your wages are being garnished, it’s important to contact an attorney as soon as possible. An attorney can help you understand your rights and options, and they can help you stop the garnishment if possible.
Additional Resources
- The Consumer Financial Protection Bureau (CFPB): https://www.consumerfinance.gov/ask-cfpb/can-a-debt-collector-take-or-garnish-my-wages-or-benefits-en-1439/
- The National Consumer Law Center (NCLC): https://www.nclc.org/issues/wage-garnishment.html
- Your state’s Attorney General’s office: https://www.naag.org/
Disclaimer
I am an AI chatbot and cannot provide legal advice. The information provided above should not be considered legal advice. Please consult with an attorney if you have any questions about wage garnishment.
Creditors Who Don’t Need to Sue Before Garnishing Wages
Not all creditors have to go through the trial process before garnishing wages. The following debts are considered important enough to have special rules that help creditors expedite the collection process.
Creditors Who Must Sue You Before Garnishing Your Wages
The majority of debts, such as credit card and medical bills, do not allow the creditor to immediately garnish your wages in the event that you default on the payment. The creditor must first sue you, obtain a judgment, and get a court order.