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Definition
Wage garnishment is a legal process by which a creditor — after winning a court judgment — directs your employer to withhold a portion of each paycheck to satisfy the debt. No creditor can garnish wages without first obtaining a court judgment (except government agencies for taxes and student loans). Federal law (Consumer Credit Protection Act) caps private creditor garnishment at 25% of disposable income or the amount above 30× the federal minimum wage ($217.50/week in 2026), whichever is lower. States can provide stronger protections: Texas and North Carolina have near-total wage garnishment exemptions for private creditors. Bank account garnishment (bank levy) works similarly — post-judgment creditors can seize funds directly from checking or savings accounts.
Also Known As
wage garnishment
earnings garnishment
bank levy
wage attachment
judgment garnishment
Used in Context
- After the credit card company won a default judgment in Texas, the garnishment notice was invalid — Texas law exempts wages from private creditor garnishment entirely, one of the strongest consumer protections in the US.
- The debt settlement company advised enrolling before the creditor obtained a court judgment, because a judgment would enable garnishment — making the situation significantly harder to resolve.
- California allows up to 25% wage garnishment for private creditors but requires the court to provide exemption forms with the garnishment notice, allowing consumers to claim hardship protection.
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