Wage Garnishment

When creditors take money directly from your paycheck

Wage garnishment is a legal process where a portion of your paycheck is withheld by your employer and sent directly to a creditor, lender, or government agency to pay off a debt. This typically happens after a court order, though certain debts—like unpaid taxes, child support, and federal student loans—can be garnished without a court ruling.

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How much of my paycheck can be garnished?

It depends on the debt type, but federal law limits garnishment to:

Credit card & personal loan debt – Up to 25% of disposable income
Federal student loans – Up to 15% of disposable income
Child support & alimony – 50-65% of disposable income, depending on support for other dependents
Unpaid taxes – Varies based on tax situation and exemptions

Can I stop wage garnishment?

Yes, you can:
✔ Negotiate a payment plan with the creditor
✔ File a claim of exemption if garnishment causes hardship
✔ Settle or pay off the debt to release the garnishment
✔ File for bankruptcy (in extreme cases) to stop most garnishments

Does wage garnishment affect my credit score?

The garnishment itself won’t appear on your credit report, but missed payments, lawsuits, and judgments leading to garnishment can significantly damage your score.

How long does wage garnishment last?

Until the debt is fully paid, settled, or a court orders it to stop.

How to Protect Yourself from Wage Garnishment

Avoid defaulting on debts—negotiate before legal action happens
Respond to court notices—you may be able to fight the garnishment
Know your state laws—some states offer stronger wage protection
Seek legal or financial advice—credit counseling or legal aid may help reduce or stop garnishment