How Wage Garnishment Works in the US

What Wage Garnishment Actually Is

Wage garnishment is a legal process where a portion of your paycheck is withheld and sent directly to a creditor, typically after a court judgment (child support, certain tax debts, and federal student loans follow separate, different rules that aren't capped the same way).

The Federal Limit

Under the federal Consumer Credit Protection Act (Title III), most garnishment for ordinary debts is capped at the lesser of 25% of your disposable weekly earnings, or the amount by which your disposable earnings exceed 30 times the federal minimum wage. Use the Wage Garnishment Calculator to see this federal floor for your own pay.

States Often Offer More Protection

Many states cap garnishment more strictly than the federal floor -- some protect a larger portion of income, and a few states heavily restrict or even prohibit wage garnishment for most consumer debts entirely. Always check your specific state's rules, since the federal limit is only a floor, not a ceiling.

Different Rules for Child Support, Taxes & Student Loans

Garnishment for child support and alimony can go significantly higher than the ordinary-debt cap -- up to 50-65% of disposable earnings depending on circumstances. Federal tax debts and federal student loan defaults follow their own separate administrative garnishment rules, not the standard court-judgment process.

What You Can Do

If you're facing garnishment, options can include negotiating directly with the creditor, disputing the underlying debt if it's inaccurate, or consulting a consumer law attorney or credit counselor -- the CFPB's debt collection resources are a good starting point.

What "Disposable Earnings" Really Means

The federal cap is based on disposable earnings, not your gross pay. Disposable earnings are what remains after legally required deductions, such as federal, state, and local income tax and Social Security and Medicare withholding. Voluntary deductions like health insurance premiums, 401(k) contributions, or union dues generally are not subtracted first, which surprises many people. That means your garnishable base can be larger than your actual take-home pay.

A Worked Example (Illustrative Numbers Only)

Suppose your weekly gross pay is $900 and legally required deductions total $180, leaving $720 in disposable earnings. The first limit is 25% of $720, which is $180. The second limit is the amount by which $720 exceeds 30 times the federal minimum wage. Check the current federal minimum wage on the Department of Labor website, multiply it by 30, and subtract that from $720. Whichever of the two results is smaller is the most that can be taken for an ordinary consumer debt. If your disposable earnings are low enough, the second test can shrink the garnishment to a small amount or even zero.

Keep in mind this is a federal ceiling. If your state protects more, the state number controls, and your employer is expected to apply whichever rule is more favorable to you.

How the Process Usually Unfolds

• A creditor sues you over an unpaid debt, and you are served with court papers.
• If you do not respond, the court often enters a default judgment against you.
• With a judgment in hand, the creditor asks the court for a garnishment order, which is sent to your employer.
• Your employer starts withholding from your next eligible paycheck and sends the money to the creditor or the court.

The single most important point in that chain is the first step. Many judgments happen because someone ignored a summons. Responding on time gives you the chance to dispute the debt, raise errors, or negotiate a payment plan before any garnishment begins.

Common Mistakes to Avoid

• Ignoring court papers or a notice from your employer, hoping it will go away.
• Assuming every garnishment follows the same cap. Child support, federal tax levies, and defaulted federal student loans each have their own rules.
• Failing to claim an exemption that may apply, such as certain protected benefits or head-of-household protections that exist in some states.
• Paying a "debt settlement" company large upfront fees before confirming what they can actually do.
• Not keeping copies of every notice, order, and payment record.

Bank Account Levies Are a Different Thing

Garnishing wages and freezing a bank account are separate collection tools. A creditor with a judgment may be able to levy funds in a bank account in some states, and the protections for certain federal benefits deposited there work differently from the paycheck rules. If your account is frozen, act quickly and ask the court or an attorney what exemptions apply.

Practical Steps If a Garnishment Notice Arrives

Start by reading the order closely and confirming who the creditor is, the amount claimed, and the deadlines listed. Compare the garnishment amount against the federal cap and your state's rules. If something looks wrong, ask your HR or payroll department how they calculated it. Then contact the creditor or its attorney about a settlement or a voluntary payment plan, which is sometimes cheaper for both sides than continued garnishment. Keep every conversation in writing where possible.

When to Talk to a Professional

A consumer law attorney, a legal aid organization, or a nonprofit credit counselor is worth contacting if the garnishment threatens your ability to pay rent or buy groceries, if you believe the debt is not yours, or if more than one order is being applied at once. Many legal aid offices help with garnishment defense at low or no cost for eligible households. Bankruptcy can also stop most garnishments, but it has long-term consequences, so it is a decision to make with qualified advice.

Frequently Asked Questions