Quick answer
Wage garnishment protections apply when a creditor or government agency seeks to collect a debt by taking money directly from your employer. Federal law sets baseline limits and protects some income types, but many details — like allowable percentages and exemption procedures — come from state law or specific federal programs.
How federal protections work
- Consumer Credit Protection Act (CCPA): For most private creditors, the CCPA limits garnishment to the lesser of 25% of your disposable earnings or the amount your weekly disposable earnings exceed 30 times the federal minimum wage (30 x $7.25 = $217.50 per week). This rule prevents creditors from taking your entire paycheck. (See CFPB summary and text of the CCPA.) [https://www.consumerfinance.gov/ and 15 U.S.C. §1673]
- Federal benefits: Social Security, Supplemental Security Income (SSI) and other federal benefit payments are generally protected from private creditor garnishment. However, there are important exceptions and administrative offsets for certain federal debts (for example, past-due child support, some federal student loans, and certain tax debts). Always check SSA and Treasury/IRS guidance before assuming immunity. (See SSA and IRS pages.)
- Federal student loans: The Department of Education can use administrative wage garnishment (AWG) for defaulted federal student loans — typically up to 15% of disposable pay after a notice process. This is an administrative collection, not a court-ordered garnishment. [U.S. Dept. of Education: defaulted federal loans — AWG]
- Tax levies: The IRS can issue a wage levy to collect unpaid federal taxes. Tax levies operate under different rules than ordinary garnishments; the IRS provides a look‑up tool and notices explaining exemptions and the amount that will be taken. [IRS — wage levy guidance]
Sources: CFPB, IRS, Social Security Administration, U.S. Dept. of Education.
Types of garnishment and who can act
- Court-ordered garnishment (creditor obtains a judgment in civil court).
- Administrative garnishment (federal agencies such as the Department of Education for defaulted student loans).
- Government-ordered garnishment for family support (child support/state family courts) and tax collection (IRS/state tax agencies).
Each type follows different notice and appeal rules; child support and tax collections often have higher collection priority.
What income is typically exempt or protected
- Most federal benefit payments (Social Security/SSI) are generally protected from private creditor garnishment, though not always from government offsets. (Check SSA and Treasury/IRS guidance.)
- Retirement plan distributions and some public benefits may have protections under federal and state laws.
- Income below the CCPA weekly threshold is typically protected from most private creditor garnishments.
Because exemptions vary, review the specific statute cited in your garnishment notice and consult your state’s court or legal aid resources.
Practical steps if you receive a garnishment notice
- Read the notice carefully — it must show who filed it and why. Confirm the debt and the judgment.
- Check timing — many garnishments require a court judgment or pre‑garnishment notice; federal administrative garnishments follow a different process.
- File a claim of exemption or motion to quash with the court if you qualify for protection under state or federal law.
- Negotiate with the creditor or collection agency for a payment plan to stop garnishment.
- Get help — contact a consumer law attorney or legal aid organization, especially if you rely on protected benefits.
For tax-specific garnishments, follow the IRS guidance and consider requesting currently not collectible status or an installment agreement. See Immediate Steps to Take If You Discover a Tax Wage Garnishment for a practical checklist: https://finhelp.io/glossary/immediate-steps-to-take-if-you-discover-a-tax-wage-garnishment/
Common mistakes to avoid
- Assuming all wages can be taken. Federal law creates floors and exemptions.
- Ignoring notices. Most garnishments start after missed deadlines; failing to act removes options.
- Not documenting hardship. Courts and agencies often consider living expenses when reducing or stopping garnishment.
Professional tips (from practice)
- Confirm the legal basis: is it a civil judgment, IRS levy, or administrative offset? The remedy differs.
- Use a pay stub to calculate disposable earnings; that figure is central to CCPA limits.
- If you get federal benefits only, document the source (SSA letters, benefit statements) — it can speed resolution.
For broader steps on stopping or limiting wage garnishment, see: How Wage Garnishments Work and How to Stop Them — https://finhelp.io/glossary/how-wage-garnishments-work-and-how-to-stop-them/
Short FAQs
- Can my employer fire me for garnishment? No — federal law generally prohibits employers from firing an employee because of a single garnishment for any one creditor. (CCPA protections.)
- Can I appeal? Yes — you can contest a garnishment in court or ask for an exemption hearing.
- Will bankruptcy stop garnishments? Bankruptcy can stop most collection actions while a case is open, but some obligations (child support, certain tax debts) survive bankruptcy.
Final notes and disclaimer
Garnishment rules mix federal limits, agency-specific authorities, and state law. The guidance above is educational and current as of 2025; it is not legal advice. For decisions that affect your paycheck, consult a qualified attorney, your state court clerk, or a local legal aid organization.
Related reading: Understanding Wage Garnishment Rules and Federal Protections — https://finhelp.io/glossary/understanding-wage-garnishment-rules-and-federal-protections/ and Immediate Steps to Take If You Discover a Tax Wage Garnishment — https://finhelp.io/glossary/immediate-steps-to-take-if-you-discover-a-tax-wage-garnishment/
Author: I have 15+ years helping clients navigate collections and garnishments; this summary reflects common scenarios and practical steps backed by federal guidance (CFPB, IRS, SSA, U.S. Dept. of Education).
