economy
Which states prohibit wage garnishment by debt collectors?
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TL;DR
- Wage garnishment can legally take up to 25% of your disposable income.
- Texas, Pennsylvania, North Carolina, and South Carolina prohibit private creditors from garnishing wages.
- These four states' protections do not apply to debts owed to federal/state governments, child support, alimony, or federally backed student loans.
- Most other states follow federal law, capping garnishment at 25% of disposable earnings or a limit based on minimum wage.
- Options to stop or limit garnishment include filing a claim of exemption, negotiating with the creditor, using a debt relief company, or filing for bankruptcy.