Wage garnishment is when a portion of your paycheck is sent to a creditor or agency because of a legal order—commonly after a court judgment, or through special rules for certain debts like child support, unpaid taxes, or defaulted federal student loans. Collectors who only send letters cannot garnish on their own; they generally need a judgment or statutory authority first.
This guide covers the usual path, federal limits under the Consumer Credit Protection Act (CCPA), and practical steps. It is not a substitute for a licensed attorney or legal-aid clinic in your state.
Typical path for ordinary consumer debts
- Default / collections contact (know your rights in Debt collectors and your rights).
- Lawsuit and proper service of papers.
- Judgment if you lose or ignore the case.
- Creditor requests a writ of garnishment / earnings withholding order.
- Employer withholds a lawful amount and remits it until the debt (plus allowed costs) is paid or the order ends.
Ignoring a summons is how many garnishments begin. If you are served, respond by the deadline or get legal help immediately.
Student loans, IRS tax debts, and child support often follow different federal or state tracks that may not require the same lawsuit sequence. Confirm which type of debt you face.
Federal CCPA limit (ordinary garnishments)
For many ordinary creditor garnishments, the federal CCPA (enforced in relevant part via Department of Labor Wage and Hour materials) limits the amount that may be taken from disposable earnings. In plain terms, the weekly amount garnished for ordinary debts generally cannot exceed the lesser of:
- 25% of disposable earnings, or
- the amount by which disposable earnings exceed 30 times the federal minimum wage
“Disposable earnings” generally means pay left after legally required deductions (such as taxes). State law can be more protective—some states ban or sharply limit wage garnishment for ordinary consumer debts. Always check your state rules; the federal floor is not the whole story.
Higher percentages can apply to child support and certain other obligations. Tax and student-aid garnishments have their own federal frameworks.
Worked example (illustrative federal ordinary-debt math)
Sam’s weekly disposable earnings: $800. Federal minimum wage for this illustration: $7.25/hour → 30 × $7.25 = $217.50.
- 25% of $800 = $200
- Excess over $217.50 = $582.50
The lesser figure is $200/week under this simplified CCPA comparison—so an ordinary creditor garnishment would generally be capped at $200/week here, unless state law sets a lower cap. If Sam’s disposable pay were only $250/week, 25% = $62.50 and excess over $217.50 = $32.50 → the lesser is $32.50.
These numbers change with the federal minimum wage and with state formulas. Employers often use payroll software keyed to the order; still verify the math against the written order and DOL/state guidance.
What to do if garnishment is threatened or active
- Before judgment: dispute inaccurate debts; seek settlement in writing; consider nonprofit counseling (Debt consolidation, settlement, or counseling, Debt payoff methods). Educational overview if debts are beyond those tools: Bankruptcy basics: Chapter 7 vs Chapter 13.
- If sued: do not ignore the complaint; raise defenses or negotiate; ask legal aid about exemptions. A recorded judgment can also become a judgment lien on property.
- If an order arrives at work: read every page; confirm the creditor, case number, and amount; ask HR/payroll what they will withhold. How that line sits among other paycheck deductions: Paycheck deductions basics.
- Claim exemptions your state allows (head-of-household, hardship, exempt benefit income, etc.) using the forms that come with the papers.
- Watch credit reports for related judgments/collections (How credit reports work).
- Reject gift-card “stop garnishment” scams—real courts do not collect in retail PINs (Credit and debt scams).
Tax-related continuous levies are handled through IRS processes, not a retail gift card; filing basics are in Filing taxes for beginners. If the freeze hits a deposit account instead of payroll, see How to handle a levied bank account.
Employer and job-protection notes
Federal law restricts firing an employee because of a single ordinary wage garnishment in many situations (CCPA anti-discharge provision). Multiple garnishments or other reasons can change the picture. Retaliation questions are fact-specific—contact DOL resources or an employment attorney if you lose hours or your job after an order.
Checklist
- Identify the debt type (judgment, support, tax, student aid).
- Verify any lawsuit or order with the court using official contact information.
- Calculate the withholding against federal CCPA and stronger state caps.
- File exemption claims on time if eligible.
- Negotiate a written release or payment plan when possible; confirm payroll stop dates.
- Document every notice; avoid scam “agents” demanding prepaid cards. Harassment before a judgment is a different problem—see How to stop harassing debt collection calls.
- Rebuild a payoff plan for remaining balances after the order ends.
Educational only. Not legal advice. Garnishment, exemption, and anti-discharge rules vary by debt type and state. Confirm current DOL Wage and Hour, CFPB, IRS, or state-court materials, and consult a licensed attorney or legal aid when sued or garnished.