In this explainer

Twenty-five percent. That is the most of your disposable income that federal law lets a private creditor garnish, and a few states protect nearly all wages from private creditors.

General information, not professional financial, tax, legal, or insurance advice. The Dreamy Leads Research is an editorial and data team, not a licensed advisor.

Chapters

  1. 0:00 Federal law caps private creditor garnishment at 25% of disposable pay.
  2. 0:12 I. The federal cap
  3. 0:33 II. How it starts
  4. 0:57 III. State protections
  5. 1:24 IV. Federal student loans
  6. 1:46 V. The automatic stay
  7. 2:00 VI. A Texas example

See your Texas numbers

The figures in this explainer come from our live dataset. Explore them for your own state or metro:

Full transcript

I. The federal cap

Under the Consumer Credit Protection Act, private creditor garnishment is capped at twenty-five percent of disposable income, or the amount above thirty times the federal minimum wage, whichever is lower. In twenty twenty-six, that weekly figure is two hundred seventeen dollars and fifty cents.

II. How it starts

It does not happen automatically. A private creditor has to win a court judgment first; government agencies collecting taxes and student loans are the exception. After a judgment, a creditor can also levy a bank account, taking funds directly from checking or savings. Three worked examples are in the free definition.

III. State protections

States can protect more. In the site's household debt study, Texas and North Carolina protect one hundred percent of wages from garnishment for consumer debt, and Florida protects one hundred percent for a head of household. Georgia's column reads seventy-five percent, or two hundred seventeen dollars and fifty cents a week, and California's now reads at least eighty percent.

IV. Federal student loans

Federal student loans follow different rules. The government or a guaranty agency can garnish without a court judgment, up to fifteen percent of disposable pay per pay period, after notice sent at least thirty days before proceedings begin. And there is no statute of limitations on those loans.

V. The automatic stay

Bankruptcy changes the picture. The moment a petition is filed, an automatic stay takes effect, and creditors must stop calling, suing, garnishing and foreclosing while the case runs.

VI. A Texas example

The glossary gives an example: after a credit card company won a default judgment in Texas, the garnishment notice was invalid, because Texas exempts wages from private creditor garnishment. The full definition is free at Dreamy Leads Research. What state are you in, and what percentage of your paycheck did a garnishment order take? Tell us in the comments.

Frequently Asked Questions

How much of my paycheck can be garnished?

For most consumer debts, federal law caps ordinary wage garnishment at 25 percent of your disposable earnings, or the amount by which your weekly pay exceeds thirty times the federal minimum wage, whichever is less. Some debts like child support and taxes allow more, and many states protect more than federal law. This is general information, not legal advice.

Can creditors garnish Social Security?

Generally no for ordinary creditors - Social Security and most federal benefits are protected from garnishment for typical consumer debts. Exceptions exist for certain obligations such as federal taxes, child support, and federal student loans. Confirm your situation with a licensed professional; this is general information, not legal advice.

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