How wage garnishment starts and who can issue it

Garnishment begins when a creditor, government agency, or child-support authority obtains a legal order that requires your employer to withhold part of your pay. Common sources of garnishment are:

  • Court judgments for unpaid consumer debts (credit cards, personal loans)
  • Federal or state tax debts (IRS or state tax agencies)
  • Child support or spousal support orders
  • Student loan collections (federal loans through administrative offset or indirect court orders in some cases)

Federal rules and state laws work together. The Consumer Credit Protection Act (CCPA) sets maximums for most private garnishments and protects employees from being fired in many situations; state courts and statutes add procedures, notice requirements, and sometimes stronger protections (Consumer Financial Protection Bureau overview: https://www.consumerfinance.gov/ask-cfpb/what-is-wage-garnishment-en-1780/).

How much of my paycheck can be garnished?

Federal law (CCPA, 15 U.S.C. § 1673) limits garnishment for most consumer debts to the lesser of 25% of “disposable earnings” or the amount by which disposable earnings exceed 30 times the federal minimum wage. “Disposable earnings” means earnings after legally required deductions such as federal, state, and local taxes, Social Security and Medicare, and other required withholdings.

Child support and alimony follow different rules. Under federal law, up to 50% of disposable earnings may be garnished for support if the employee is supporting another spouse or child, and up to 60% if the employee is not supporting another family member. If support is more than 12 weeks in arrears, those limits can increase by 5 percentage points (so 55% or 65% as applicable) (U.S. Department of Labor and CFPB summaries).

For federal tax debts the IRS enforces collection through levies and wage garnishments according to its own rules. The IRS uses a formula to leave a minimum amount of income for basic living expenses, but it can garnish wages without a court judgment after issuing required notices (see IRS guidance: https://www.irs.gov/).

State rules may provide lower maximums or broader exemptions (for example, some states protect more of your wages or exempt certain benefits like unemployment or public assistance). Always check state law or a local attorney.

Typical process and timeline

  1. Creditor obtains judgment (for private debts). The creditor sues, gets a judgment, then seeks a garnishment order from the court.
  2. Notice to the debtor. Many states require the creditor to notify you; with federal tax levies the IRS sends a notice of intent and demand for payment before levying wages.
  3. Employer receives the garnishment order and must begin withholding. Employers have legal obligations to comply and will usually forward withheld amounts to the creditor or agency.
  4. Withholdings continue until the debt is paid, a court order changes the amount, or you successfully challenge or stop the garnishment.

Timing varies: private-creditor garnishments are triggered by court actions (weeks to months), IRS actions follow statutory notice periods (the IRS will generally send a Notice and demand and a Final Notice before levying), and child-support garnishments can be faster depending on state procedures.

Ways to stop or reduce a wage garnishment (practical steps)

  1. Identify the garnishment type and source
  • Read the paperwork carefully. The notice should say whether this is a court judgment, IRS levy, state tax, or child support order. The rules and remedies differ by source.
  1. Assert an exemption or file a claim of exemption
  • Many courts let you file a “claim of exemption” to show that the garnishment would create undue hardship. This can pause collection while the court reviews your claim.
  1. Negotiate directly with the creditor
  • Creditors often prefer a workable payment plan instead of a garnishment. Offer a realistic monthly payment and get any agreement in writing. For tax debts, negotiate with the IRS for an installment agreement, Offer in Compromise, or temporary relief (currently not collectible) depending on eligibility (IRS: set up an installment plan at https://www.irs.gov/payments).
  1. Challenge procedural errors or service problems
  • If you were not properly served with notice or the judgment is wrong, ask the court to set aside the garnishment. Time limits and strict procedures apply, so act promptly.
  1. Ask the court for a modification based on hardship
  • Courts can reduce the amount withheld if you can prove the garnishment makes you unable to meet basic living expenses.
  1. Use bankruptcy as a possible stopgap
  • Filing for bankruptcy triggers an automatic stay that stops most garnishments and collection efforts immediately. Note important exceptions: domestic support obligations (child support and many alimony claims) and certain tax debts may not be dischargeable, and the stay may be temporary if not properly maintained. Consult a bankruptcy attorney (U.S. Courts: bankruptcy basics).
  1. For IRS/State tax garnishments, pursue administrative remedies
  • Request a Collection Due Process hearing, apply for an Installment Agreement or an Offer in Compromise, or request a “currently not collectible” status if you have no ability to pay. The IRS has specific programs and guidelines—contact the IRS or a tax professional early (https://www.irs.gov/).
  1. Contact your payroll/employer to verify calculations
  • Ensure your employer calculates “disposable earnings” correctly and applies any allowed exemptions. If they withhold too much, you can get money back by challenging the garnishment in court.

What employers must and must not do

  • Employers must comply with valid garnishment orders and forward withheld funds promptly. They should also give you any statutorily required notices.
  • Under federal law, an employer generally cannot fire you solely because your pay is subject to a single garnishment for one debt. States may have stronger protections.
  • Employers are not responsible for defending you; if you believe the order is wrong, you must challenge it in court.

Common mistakes and misconceptions

  • Belief that Social Security, most disability, or public assistance always can be garnished. In fact, many federal benefits have special protections and may be partially or wholly exempt—check the source of funds and state rules.
  • Thinking the garnishment will simply disappear if ignored. Ignoring notices usually makes matters worse; garnishment orders continue until satisfied or legally stopped.
  • Assuming bankruptcy will clear all garnishments. Bankruptcy can stop most collection actions immediately, but some debts are non-dischargeable (child support, many tax debts).

Examples and real-world outcomes

  • Example 1: Consumer judgment. A credit card creditor wins a judgment and obtains a garnishment for 25% of disposable earnings. The debtor files a hardship claim showing excessive living expenses; the court reduces the amount and sets a lower monthly payment.

  • Example 2: IRS wage levy. The IRS issues required notices and then serves an employer with a Form 668-W(c) (Wage Levy). The taxpayer contacts the IRS, proves inability to pay, and obtains a temporary collection hold while negotiating an installment agreement.

  • Example 3: Child support. A parent behind on support has 60% of disposable earnings garnished; after proving they support another child, the garnishment is recalculated to 50% (or higher if arrears exceed statutory thresholds).

Documentation you should gather immediately

  • All garnishment notices, court judgments, and correspondence from creditors or agencies
  • Recent pay stubs and a budget showing income and essential expenses
  • Bank statements, proof of dependents, and documentation of special circumstances (medical bills, job loss)

Having these ready makes it easier to file a claim of exemption, negotiate with creditors, or seek counsel.

When to get professional help

  • If the garnishment is for child support, immediate legal advice is critical—family courts move quickly, and outcomes affect children.
  • For tax garnishments, a tax attorney or enrolled agent can negotiate with the IRS and explain options like Offers in Compromise or Currently Not Collectible status (see IRS guidance).
  • If you face multiple garnishments or complex debt, a consumer bankruptcy attorney or a non-profit credit counselor can evaluate whether bankruptcy or debt management is appropriate.

For related guidance, see FinHelp’s articles on How to Stop a Wage Garnishment: Legal and Administrative Steps and Wage Garnishment by the IRS: Process and Taxpayer Protections.

Practical tips to protect yourself going forward

  • Respond to collection notices immediately; prompt contact opens negotiation options.
  • Keep an emergency fund to avoid missed payments that can lead to judgments.
  • Monitor your credit and court records to catch suits early.
  • Use written agreements for any negotiated payment plan and confirm that the creditor will stop garnishment once terms are met.

Frequently asked questions (short answers)

  • Can my employer fire me for a garnishment? Federal law prevents firing for a single garnishment. Employers can still dismiss employees for legitimate business reasons; check state law for stronger protections.
  • Will garnishment show on my credit report? The garnishment itself doesn’t directly appear, but the underlying judgment or delinquency likely already impacted your credit.
  • How long does garnishment last? Until the debt is paid, the court order is satisfied, or the garnishment is legally modified.

Final notes and disclaimer

This article explains general rules and common remedies for wage garnishment as of 2025 and cites federal standards and typical administrative procedures. It is educational and not personalized legal or tax advice. For decisions that affect your rights, consult a qualified attorney or tax professional. Authoritative sources used include the Consumer Financial Protection Bureau (CFPB) and the Internal Revenue Service (IRS).