Wage Garnishment: What It Is and How to Handle It

Wage Garnishment: How It Works and What You Can Do

Wage garnishment is when a portion of your income or bank balance is legally withheld to settle a debt.

Written by

Co-written by

Edited by

Edited by other Updated Apr 28, 2025

What is wage garnishment?

Wage garnishment is when a court orders that your employer withhold a portion of your paycheck and send it directly to the creditor or person to whom you owe money. Child support, consumer debts and student loans are common sources of wage garnishment. Your earnings will be garnished until the debt is paid off or otherwise resolved. If you're in default, you'll hear from the department's Office of Federal Student Aid in the next two weeks with a reminder to begin repayment. Later this summer, the office said it will send wage garnishment notifications. You do have legal rights, including caps on how much can be taken at once. You can also take steps to lessen the effect and help you bounce back.

Meet MoneyNerd, your weekly news decoder

So much news. So little time. NerdWallet's new weekly newsletter makes sense of the headlines that affect your wallet.
So much news. So little time. NerdWallet's new weekly newsletter makes sense of the headlines that affect your wallet.
So much news. So little time. NerdWallet's new weekly newsletter makes sense of the headlines that affect your wallet.

Types of garnishment and how it happens

There are two types of garnishment: Wage garnishment: Creditors can legally require your employer to hand over part of your earnings to pay off your debts. Wage garnishment: Nonwage garnishment: Commonly referred to as a bank levy; creditors can tap into your bank account. Nonwage garnishment:

How does wage garnishment work?

Garnishment often happens when a creditor sues you for nonpayment of a debt and wins in court. Sometimes, though, a creditor can force garnishment without a court order, for instance, if you owe back taxes or a balance on federal student loans. The court will send notices to you and your bank or employer. The garnishment can begin the first payday after the employer gets the court order. The garnishment continues until the debt, potentially including court fees and interest, is paid.

How much of your wages can be garnished?

Here’s an overview of the federal limits on how much of your disposable income a creditor can take. (When it comes to wage garnishment, “disposable income” means any money left after deductions, such as Social Security, Medicare and other taxes, are taken out.) Type of debt Percent of weekly disposable income that can be garnished Credit card and medical bills, personal loans and most other consumer debts Either 25% or the amount by which your weekly income exceeds 30 times the federal minimum wage (currently $7.25 an hour), whichever is less. Here’s how that breaks down: • If your weekly disposable income is $217.50 or lower, garnishment is not allowed. • If it's $217.51 to $289.99, the amount above $217.50 can be taken. • If it's $290 or more, a maximum of 25% is taken. Child support and alimony Up to 50% of disposable earnings if you are supporting another child or spouse; otherwise, up to 60%. If you are more than 12 weeks late in payments, an additional 5% may be taken. Federal student loans or other non-tax debts owed to the U.S. government Up to 15% of disposable income. Taxes The IRS will determine the amount taken based on your filing status and the number of dependents you have.

Know your wage garnishment rights

You have some rights in the wage garnishment process, but in most states, it’s your responsibility to be aware of and exercise these rights. You have to be legally notified of the garnishment. You can file a dispute if the notice has inaccurate information or you believe you don’t owe the debt. Some forms of income, such as Social Security, Supplemental Security Income and veterans' benefits, are exempt from garnishment as income. However, they could be subject to seizure once in your bank account if you don't receive these benefits via direct deposit. You can’t be fired for having one single wage garnishment.

What to do when you get a garnishment judgment

If you believe the judgment was made in error or it’s causing undue harm to your finances, you can challenge the garnishment. First, carefully read the judgment to make sure all of the information is accurate. Make sure that it’s not something you already paid, and that it’s your debt. If it is your debt, consider how much money will be taken, and what it will mean for you. Then, weigh what to do next. You might want to consult a consumer law attorney or local legal aid to determine what’s best for you. You can also get attorney referrals from the American Bar Association or the bar association in your state. You have three main options for handling a wage garnishment judgment:

Work out a different deal

Contact your creditors to negotiate. You could look at your budget, see how much you can afford to pay, and see if the creditor will agree to a payment plan.

Challenge the judgment

If you believe the garnishment was made in error, will cause undue harm, or is being improperly executed, you can object in court. You’ll have to act quickly. You may have only five business days to contest the ruling.

Accept the garnishment

You can pay off the garnishment in installments as the judgment states or pay in a lump sum. Borrowing money from a family member or taking out a personal loan to pay off the judgment, which is possible even with the garnishment on your credit report, could give you quick relief from the stress of a prolonged series of payments. A garnishment judgment will stay on your credit reports for up to seven years, potentially affecting your credit score.

If wage garnishment is a financial burden

If you need more help, consult a nonprofit credit counselor to discuss your debt relief options, such as a repayment plan or bankruptcy. You can also explore ways to restore your credit. Explore more on Article sources NerdWallet writers are subject matter authorities who use primary, trustworthy sources to inform their work, including peer-reviewed studies, government websites, academic research and interviews with industry experts. All content is fact-checked for accuracy, timeliness and relevance. You can learn more about NerdWallet's high standards for journalism by reading our editorial guidelines. U.S. Department of Education. U.S. Department of Education to Begin Federal Student Loan Collections, Other Actions to Help Borrowers Get Back into Repayment. Accessed Apr 28, 2025. Bureau of the Fiscal Service. Administrative Wage Garnishment for Employers. Accessed Feb 26, 2025. U.S. Department of Labor. Employment Law Guide: Employee Rights. Accessed Apr 28, 2025. Consumer Financial Protection Bureau . Can a debt collector take my federal benefits, like Social Security or VA payments?. Accessed Apr 28, 2025. About the authors Schwahn Lauren Schwahn is a writer at NerdWallet who covers credit scoring, debt, budgeting and money-saving strategies. She contributed to the "Millennial Money" column for The Associated Press and managed a team of writers producing content for the series. Her work has also been featured by USA Today, MSN, The Washington Post and more. Lauren has a bachelor’s degree in history from the University of California, Santa Cruz. She is based in San Francisco. Published in Pyles Sean Pyles, CFP®, is producer and host of NerdWallet's "Smart Money" podcast. On "Smart Money," Sean talks with Nerds across the NerdWallet Content team to answer listeners' personal finance questions. With a focus on thoughtful and actionable money advice, Sean provides real-world guidance that can help consumers better their financial lives. Beyond answering listeners' money questions on "Smart Money," Sean also interviews guests outside of NerdWallet and produces special segments to explore topics like the racial wealth gap, how to start investing and the history of student loans. Before Sean started podcasting at NerdWallet, he covered topics related to consumer debt. His work has appeared in USA Today, The New York Times and elsewhere. When he's not writing about personal finance, Sean can be found tending to his garden, going for runs and taking his dog for long walks. He is based in Portland, Oregon. Published in How to Pay Off Debt: Top Strategies for 2026 Credit Score Ranges: What They Mean and How They Work How to Budget Money in 5 Steps 28 Proven Ways to Save Money What Is Bankruptcy? Definition, Types and What to Know By Sean Pyles Chapter 7 vs. Chapter 13 Bankruptcy: What’s the Difference? By Sean Pyles, Lauren Schwahn, Kate Ashford, WMS™ How to Deal with Debt Collectors By Sean Pyles, Tommy Tindall, Tiffany Curtis What Is a Debt Management Plan? By Jackie Veling, Sean Pyles Debt Relief: How It Works and Options to Consider By Jackie Veling, Kate Ashford, WMS™