Overview

Wage garnishment means a creditor or government agency has legal authority to take money directly from your paycheck to satisfy a debt. It can sharply reduce take-home pay and make day-to-day budgeting difficult. In my practice over 15 years, early communication and swift use of available remedies often stop garnishment quickly or reduce its impact.

Authoritative sources: Consumer Financial Protection Bureau (CFPB) explains what garnishment is and how it works (https://www.consumerfinance.gov/ask-cfpb/what-is-wage-garnishment-en-203/). The IRS explains tax levies and wage garnishment procedures (https://www.irs.gov/taxtopics/tc201).

How does wage garnishment work?

  • Who can garnish your wages:

  • Private creditors after a court judgment (collection lawsuits).

  • State child support agencies (often without a court judgment).

  • Federal agencies: the IRS (tax levies), Department of Education (defaulted federal student loans or administrative wage garnishment), and Treasury Offset for certain federal debts.

  • Legal mechanics: For most private creditors, garnishment requires a court judgment. The court issues an order that instructs your employer to withhold a portion of disposable earnings and send it to the creditor. Some federal agencies can garnish or levy without a court judgment (IRS, federal student loan programs) — those are administrative actions (CFPB; IRS).

  • Federal limits on garnishment: Under the Consumer Credit Protection Act (CCPA), most consumer creditors can’t take more than 25% of your disposable earnings, or the amount by which disposable earnings exceed 30 times the federal minimum wage, whichever is less. Certain debts (child support, student loans, tax levies) follow different rules and higher withholding percentages may apply for support obligations (CFPB; Department of Labor guidance).

  • Disposable earnings defined: Generally, your gross pay minus legally required deductions (federal, state, and local taxes; Social Security; Medicare) equals disposable earnings. Voluntary deductions (retirement contributions, health insurance) usually don’t count for the disposable earnings calculation.

Types of garnishment and special rules

  • Child support and alimony: States enforce support orders aggressively. Up to 50–60% of disposable earnings may be garnished for past-due support depending on dependents and whether support payments are current (CFPB).

  • Federal tax levies: The IRS can issue a levy on wages after notification and opportunities to resolve debt. Tax levies differ from garnishments by private creditors and come with specific notice requirements and collection options like installment agreements, Offers in Compromise, or Currently Not Collectible status (IRS Topic 201).

  • Federal student loans and administrative wage garnishment: Federal agencies can use administrative processes to garnish wages for certain defaulted federal debts. The Department of Education and other agencies publish procedures and rights for borrowers to dispute and seek relief.

  • State variances: State law affects timelines, procedural steps, exemptions, and maximums. Always check your state’s court and labor rules or consult local counsel.

How to stop a wage garnishment before it starts (preventive steps)

  1. Identify the debt and verify the claim immediately. Request documentation, including the judgment or agency notice.
  2. Contact the creditor or agency and propose a reasonable repayment plan, settlement, or hardship arrangement. Many creditors will pause legal actions to accept structured payments.
  3. Ask for a court hearing or file a claim of exemption if you qualify (example: some states allow exemptions for essential income).
  4. For tax debt, contact the IRS early to request an installment agreement, Offer in Compromise, or request Currently Not Collectible status. You can also request a Collection Due Process (CDP) hearing (IRS forms and guidance at https://www.irs.gov/). For general guidance on stopping tax levies and garnishments, see our guide: How Tax Levies and Garnishments Work and How to Stop Them (https://finhelp.io/glossary/how-tax-levies-and-garnishments-work-and-how-to-stop-them/).

In my experience, creditors are often willing to negotiate once they see a clear, realistic plan backed by documentation (pay stubs, bank statements). Early, documented contact is the key to better outcomes.

What to do if wages are already being garnished (step-by-step)

  1. Confirm the source and read the court or agency order carefully. The notice should explain who requested the garnishment and why.
  2. Contact your employer’s payroll or HR department to understand when garnishment started and the amount withheld. Employers are required to comply with valid garnishment orders but must also follow limits.
  3. Calculate the impact: compute your disposable earnings (gross minus required taxes and withholdings) to confirm the garnished amount is correct under federal and state rules.
  4. Seek immediate legal remedies:
  • File a claim of exemption or motion to quash the garnishment in the court that issued the order if you qualify.
  • For state orders, your state legal aid office can help prepare exemption claims.
  • For IRS levies, request a Collection Due Process (CDP) hearing or contact the IRS to set up a payment plan or request Currently Not Collectible status; you may also submit an Offer in Compromise if eligible (IRS).
  • If the garnishment was issued without notice or due process, consult an attorney about filing a motion to set aside the judgment or pursue a stay.
  1. Consider bankruptcy only after consulting counsel. Bankruptcy can stop most garnishments immediately via the automatic stay and may discharge certain debts; however, child support, some tax debts, and certain federal obligations are not dischargeable.
  2. If the garnishment was for federal debt (tax or federal loans), use the specific agency processes — our articles How to Stop an IRS Wage Garnishment (https://finhelp.io/glossary/how-to-stop-an-irs-wage-garnishment/) and Wage Garnishment vs. Bank Levy (https://finhelp.io/glossary/wage-garnishment-vs-bank-levy/) explain agency-specific steps.

Practical tips, documentation, and scripts

  • Keep every notice, court document, and correspondence. Date everything and send important correspondence by certified mail.
  • Script for contacting a creditor or agency: “I received notice of a garnishment. I dispute the amount and/or request a repayment plan. Please send me the documentation for the judgment and the contact you use for payment arrangements.”
  • Contact your local Legal Aid or state bar for free or low-cost representation if you cannot afford a private attorney.

Common mistakes to avoid

  • Ignoring notices. Garnishment is the result of unpaid obligations and legal steps; ignoring notices limits your options.
  • Assuming Social Security or retirement income is always garnishable. Many benefits are protected from private creditors, though federal offsets may apply for certain federal debts. Check SSA and Treasury Offset Program rules before assuming any income is safe (SSA; CFPB).
  • Not checking for state-specific exemptions. State laws often provide protections that can stop or reduce garnishment.

When to get professional help

Bottom line

Wage garnishment can be stopped or reduced in many cases, but timing matters. Verify the debt, communicate early, use the agency or court processes to claim exemptions or request payment arrangements, and get legal help when needed. If garnishment is from a federal source, use the agency-specific remedies promptly.

This article is for educational purposes and does not constitute legal advice. For personalized help, consult a qualified attorney or financial professional familiar with your state’s law and the specific type of debt.