What Is Wage Garnishment? How It Works and How to Stop It

Wage garnishment is a legal process where a portion of your paycheck is withheld by your employer and sent directly to a creditor or the government before it ever reaches your bank account. It's one of the more serious collection tools available, and it usually requires a court judgment first.

How Much Can Legally Be Taken

Under federal law, most creditor garnishments are capped at the lesser of 25% of your disposable earnings or the amount by which your weekly income exceeds 30 times the federal minimum wage. Some states set lower caps. Child support, unpaid taxes, and federal student loans follow different, often less protective, rules.

Types of Garnishment and Their Rules

• Consumer debt (credit cards, personal loans, medical bills): creditor must sue and win a judgment first, then apply for a garnishment order
• Child support: can take up to 50-65% of disposable earnings, and generally doesn't require a separate lawsuit
• Federal student loans in default: the Department of Education can garnish up to 15% through administrative wage garnishment, without suing you first
• Unpaid federal taxes: the IRS can garnish wages without a court order at all, using its own administrative authority

What Can Stop or Reduce a Garnishment

• Negotiating a payment plan directly with the creditor before or after judgment, which often results in the garnishment being withdrawn
• Filing a claim of exemption if the garnishment would leave you below what your state protects as necessary for basic living expenses
• Filing for bankruptcy, which triggers an automatic stay that halts most garnishments immediately (though some, like child support, continue)
• Disputing the underlying debt if you believe it's inaccurate, already paid, or past the statute of limitations

Protecting Yourself Before It Gets There

Garnishment is nearly always preceded by a lawsuit and a default judgment — ignoring collection letters and court summonses is what allows it to happen. Responding to a lawsuit, even just to negotiate, keeps far more options open than letting it go to judgment by default.