When creditors can't collect debts through normal means, they may pursue wage garnishment—a legal process that requires your employer to withhold part of your paycheck and send it directly to creditors. Garnishment can feel overwhelming, but understanding the process and your protections helps you respond effectively. You have legal rights that limit how much can be taken and options for challenging improper garnishments.
Federal and state laws regulate garnishment, providing protections even as they allow creditors to collect. Knowing these rules helps you navigate a difficult situation.
How Garnishment Works
Most creditors must first sue you, win a judgment, and then obtain a garnishment order from the court. The garnishment order directs your employer to withhold a portion of your wages each pay period and send it to the creditor or court.
Certain debts don't require court judgments for garnishment: federal student loans, unpaid taxes, and child support obligations can be garnished through administrative processes without first suing you.
When your employer receives a garnishment order, they must comply—failing to do so makes them liable for the debt. Most employers have standard procedures for processing garnishments through payroll.
Federal Garnishment Limits
The Consumer Credit Protection Act limits how much creditors can take. For ordinary debts, garnishment cannot exceed 25% of your disposable earnings or the amount by which your weekly wages exceed 30 times the federal minimum wage, whichever is less.
"Disposable earnings" means pay after mandatory deductions (taxes, Social Security) but before voluntary deductions (health insurance, retirement contributions). The calculation matters because it determines your protected amount.
If your weekly disposable income is less than 30 times the minimum wage (currently about 17.50), your entire paycheck is protected from garnishment for ordinary debts. This protects low-income workers from complete wage seizure.
Different Rules for Different Debts
Child support and alimony garnishments can take more—up to 50% if you're supporting another spouse or child, up to 60% if not, with an additional 5% if you're more than 12 weeks behind.
Federal student loan garnishments are capped at 15% of disposable earnings. Tax levies can take more than ordinary garnishments, though some income remains protected.
State laws may provide greater protection than federal minimums. Some states limit garnishment further or exempt more income. Check your state's specific rules—they may give you additional protection.
Challenging a Garnishment
You can challenge garnishment on several grounds. If the underlying judgment is invalid or the garnishment amount is calculated incorrectly, you can object. If you're below income thresholds that should protect you, file an objection claiming exemption.
You typically have limited time—often 10 to 30 days—to file objections after receiving garnishment notice. Missing deadlines may waive your right to challenge. Don't delay if you believe the garnishment is improper.
Common objections include head-of-household exemptions (some states protect sole breadwinners more), hardship claims, exemption of certain income sources, and errors in calculation.
Multiple Garnishments
When multiple creditors seek garnishment, rules determine priority and limits. Generally, child support and tax debts have priority over ordinary creditors. The total taken from your paycheck has limits even with multiple garnishments.
Having one garnishment doesn't necessarily prevent more, but limits on total garnishment mean additional creditors may have to wait or receive reduced amounts. Some garnishments must be paid fully before others begin.
Impact on Employment
Federal law prohibits employers from firing you for a single garnishment. However, this protection doesn't extend to multiple garnishments—employers dealing with several garnishments for different debts can legally terminate you in most cases.
State laws may provide additional employment protection. Some states prohibit discharge for any number of garnishments or limit adverse employment actions based on wage assignments.
While your employer can't fire you for one garnishment, the situation can still affect workplace relationships. Handle communications with HR professionally and understand your company's payroll procedures.
Getting Help
If you're facing wage garnishment, several options exist. Negotiating with creditors directly might result in voluntary payment plans instead of continued garnishment. Bankruptcy may stop garnishment entirely and provide a fresh start. Claiming proper exemptions ensures you keep what the law protects.
A consumer attorney or legal aid organization can help you understand your rights, file appropriate objections, and explore options for addressing underlying debt. Many offer free consultations, and addressing garnishment issues promptly protects more of your income.