Individual state debt collection laws tend to favor either the consumer or the creditor who sues him for money he owes. Texas law favors the consumer. If you're unable to pay a credit card balance or an auto loan and your creditor gets a judgment against you, Texas limits its options to use it. This doesn't mean that your creditor can't collect from you, just that it can't garnishee your wages, with a few exceptions.
Child Support
Not only does Texas allow garnishment of your pay for child support, it requires it. With rare exceptions, this happens on an automatic basis as soon as the court enters an order that requires you to pay child support. The garnishment would be in the amount of your scheduled payment, unless you fall behind. If you owe arrears, or past-due support, the garnishment could be anywhere from 55 percent of your take-home pay if you're currently supporting another family, to 65 percent if you have no other dependents, if you fall behind three months or more.
Bank Accounts
Texas legislation specifically defines wages as money for work you've performed as an employee but that you haven't received yet. This means that once your employer pays you and you receive that money, and if you deposit it in a bank account, Texas law no longer protects it from garnishment. Once you receive your pay, it's not "wages" anymore, so a creditor who sues you can garnishee your bank account.
Other Income
Texas also does not protect money you earn if you work as an independent contractor as opposed to as an employee. Independent contractors are self-employed; they're not on anyone's payroll. They provide services in exchange for pay, but the person or company who pays them does not have any control over when or how they do the work. Payment is for the completed task or product. If you earn your money this way, a creditor with a judgment against you can garnishee it in Texas. The creditor can also levy against any royalties or rent payments you might receive.
Out-of-State Judgments
Other exceptions exist if your employer is not in Texas, or if the judgment against you arises from a contract you signed outside the state. For example, if you live in Texas but cross over the state line into Oklahoma to go to work, Oklahoma law, not Texas law, would apply if a creditor sues you and attempts to garnishee your wages. If you moved to Texas from Louisiana and you incurred a debt and were sued for it while you lived there, Texas will usually honor a garnishment from another state.
Other Exceptions
Texas' garnishment laws generally apply only to your creditors. Like the exception for child support, your wages can also be garnisheed for taxes, student loans or past-due alimony obligations. Your employer can garnishee your wages if you owe him money.
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