Waking Up to a Smaller Paycheck
There’s a particular kind of panic that sets in when you see your paycheck is suddenly and significantly smaller — and your employer confirms a court order is the reason. Wage garnishment is one of the most disruptive debt collection tools available to creditors. But it doesn’t happen instantly, you almost certainly had warning signs, and there are things you can do about it.
How Garnishment Works
Before a creditor can garnish your wages, they must generally:
- Sue you in court and win a judgment against you
- File a separate garnishment action with the court
- Obtain a writ of garnishment and serve it on your employer
Your employer is then legally required to withhold a portion of your wages and send it to the creditor. Federal law limits the amount that can be garnished to 25% of your disposable earnings, or the amount by which your weekly income exceeds 30 times the federal minimum wage — whichever is less.
Exception: child support and student loans have different, often higher, garnishment limits.
Legal Ways to Stop or Reduce Wage Garnishment
File for bankruptcy: An automatic stay immediately halts all collection activity, including wage garnishment, the moment you file. This is often the fastest and most complete solution.
Claim an exemption: Many states have exemptions for certain types of income or for low-income earners. File a claim of exemption with the court immediately after receiving notice.
Negotiate with the creditor: Surprisingly, many creditors will accept a lump sum or payment plan to release a garnishment. They’d often rather have guaranteed payments than deal with the administrative hassle.
Challenge the judgment: If you were never properly served, the garnishment may be based on a default judgment you didn’t know about. You may be able to vacate that judgment and reopen the case.
What NOT to Do
Quitting your job to avoid garnishment is a disaster — you’ll lose income, damage your employment history, and the creditor will simply resume garnishment when you’re re-employed. Ignoring the situation makes it worse. Act quickly and consult a debt relief attorney.
The Role of an Attorney
A consumer law attorney can evaluate whether the underlying judgment was valid, whether proper procedures were followed, and which exemptions apply to your situation. Many work on contingency or for flat fees on garnishment defense matters. The consultation is almost always worth it.
