Wage garnishment is one of the most jarring financial experiences a person can go through. You open your paycheck and it’s noticeably smaller than it should be. Your employer tells you they received a court order — and there’s nothing they can do. What now?
How Wage Garnishment Works
A creditor who wins a lawsuit against you can ask the court for a wage garnishment order, which requires your employer to withhold a portion of your earnings and send it directly to the creditor. Under federal law, the maximum that can be garnished is 25% of your disposable earnings or the amount by which your weekly take-home exceeds 30 times the federal minimum wage — whichever is less.
What Debts Can Lead to Garnishment
- Credit card debt (after obtaining a court judgment)
- Medical debt
- Private student loans (after a judgment)
- Back taxes (IRS and state — no court judgment needed)
- Child support and alimony (up to 50–65% of disposable income)
How to Stop Wage Garnishment
Options include: paying the debt in full, negotiating a settlement or payment plan with the creditor, filing for bankruptcy (which triggers an automatic stay halting all garnishments), or claiming an exemption if your income falls below certain thresholds. Each option has different long-term financial implications.
If garnishment is happening now, act quickly. Contact the creditor directly to negotiate — many prefer a settlement over the slower court-supervised garnishment process.
