A court judgment is, typically, a credit card company's last resort for collecting on delinquent accounts. The next step after your credit card company has obtained a judgment is a wage garnishment. A wage garnishment is when the judgment is sent to your employer, and a percentage of your paycheck is withheld to pay down your debt. Whether the wage garnishment can be applied to your spouse's wages depends on where you and your spouse live and who technically owns the debt.
Credit Card Ownership
If you took out the credit card that's being garnished before your marriage, and it's in your name, your spouse's wages can't be garnished to repay the debt. If you took out the credit card out after your marriage, but it is only in your name, whether or not the credit card company can garnish your spouse's wages depends on whether you live in a community property state. If the credit card is in your and your spouse's names, the company can garnish both your wages after a judgment.
Community Property
Community property states assign joint responsibility to any debt incurred during the course of a marriage no matter which spouse actually applied for the credit card. If you live in a community property state, your spouse's wages could be garnished if the debt was incurred during your marriage. Community property states include California, Texas, New Mexico, Wisconsin, Washington, Nevada, Idaho and Louisiana. In Alaska, couples can choose whether to have community property.
Avoiding Garnishment
The best way to keep your credit card company from garnishing your spouse's wages is to avoid letting your debt get to the point where your credit card company is suing you for payment. Contact your credit card company as soon as you start falling behind and offer to make payment arrangements. Some credit card companies will work with you. If your account is in collections, contact the collections agency. If your situation is truly dire, consider meeting with an attorney to review options such as bankruptcy. Depending on your income, you may be eligible for free or low cost legal assistance.
Income That Can't Be Garnished
Some types of income can't be garnished. Social Security, Social Security Disability, veteran's benefits and student assistance can't be garnished, for example. Self-employment income also can't be garnished; self-employment income isn't considered a wage, and only wages can be garnished. If you or your spouse is being garnished unfairly, contact the Federal Trade Commission and your state's office of the Attorney General.
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