What Wage Garnishment Really Means
Wage garnishment is when a court orders your employer to withhold a portion of your paycheck and send it directly to a creditor. It happens after a creditor has sued you, won a judgment against you, and obtained a garnishment order.
It’s a serious step — it means the creditor has already been through the court system and won. But it doesn’t mean you have no options.
How Much Can They Take?
Federal law limits wage garnishment to the lesser of: 25% of disposable earnings (what’s left after mandatory deductions), or the amount by which your disposable earnings exceed 30 times the federal minimum wage per week.
Certain debts have different rules. Child support and alimony can result in up to 50–65% garnishment. Student loan garnishment (for federal loans) is limited to 15%. Tax debt garnishments by the IRS use their own calculation.
Debts That Can Lead to Garnishment
Credit card debts, medical bills, and personal loans require the creditor to sue you and win a court judgment before garnishing wages. Child support and alimony, federal student loans, and IRS tax debts don’t require a court judgment — they can initiate garnishment through administrative processes.
How to Stop or Reduce a Garnishment
File a claim of exemption with the court — most states exempt certain income (Social Security, disability benefits) from garnishment entirely. If your income is below a threshold needed for basic living expenses, you may qualify for a hardship exemption.
Negotiate a payment plan with the creditor. Many creditors will agree to stop garnishment if you commit to a realistic repayment arrangement — because voluntary payment is less hassle for them than ongoing court processes.
Filing for bankruptcy triggers an automatic stay that immediately stops all garnishments (except child support). This doesn’t erase the debt, but it stops the garnishment while you reorganize.
Can Your Employer Fire You Over a Garnishment?
Federal law prohibits employers from firing an employee for having a single wage garnishment. However, this protection doesn’t extend to multiple garnishments from multiple creditors — employers may be able to terminate you in that situation depending on state law.
Address garnishments quickly. The longer they continue, the more you pay — and the less leverage you have to negotiate.