economy
How much of your paycheck will you actually lose to wage garnishment?
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TL;DR
- Wage garnishment happens after a court judgment, with employers legally required to send a portion of wages to creditors.
- Federal law caps garnishment at 25% of disposable earnings for most consumer debts, or income exceeding 30 times the federal minimum wage, whichever is less.
- Higher garnishment limits apply to child support (up to 50-60%), federal student loans (up to 15%), and tax debt, with IRS formulas varying.
- State laws can provide stronger protections than federal limits, requiring debtors to assert their rights.
- Options to avoid or stop garnishment include debt settlement, debt management plans, filing objections/exemptions, bankruptcy, and professional debt relief services.