Can a Company Garnish My Wages in Texas?

Texas is one of the few states that do not allow creditors or debt collectors to garnish a debtor's wages. This protection includes collection for debts covered under the Fair Debt Collection Practices Act, such as credit cards debts, medical bills, and personal, family and household debts. Exceptions apply, including child support payments and federal tax debts.

Process

Ordinarily, to garnish wages, a creditor has to first file a lawsuit against you. You can contest the suit in court. If the court agrees with the creditor, it grants him a judgment. To garnish wages, the creditor applies for a wage garnishment from the same court. The court issues a writ of garnishment, which orders your employer to withhold payments from your wages. Once judgment has been granted, a wage garnishment is not difficult to obtain if the creditor knows your place of employment. Although Texas does not allow creditors to garnish wages, they can still obtain a judgment against you. Some creditors resort to a bank account garnishment after receiving a judgment.

Domestication

If you are paid in a state that allows wage garnishments, a Texas creditor can obtain a judgment in Texas against you, domesticate it in the foreign state and then seek a wage garnishment there. Similarly, if you are in Texas and the creditor is in a foreign state, the latter can domesticate a judgment in Texas and obtain a writ to garnish via an allowable method, such as from your bank account. These processes can be complicated and costly and are not commonly exercised.

Exceptions

In Texas, you are not exempt from child support withholding or an IRS wage levy. The court can order an employer to withhold up to 50 percent of your pay if you are supporting a child outside of the support order, and up to 60 percent if you are not. It can also order an additional withholding of 5 percent for late support payments exceeding 12 weeks. Your employer uses IRS Publication 1494 and your Statement of Exemptions and Filing Status to calculate the amount of your income that is excluded from levy.

Considerations

In most cases, a debt collector has four years to bring a lawsuit against you in Texas and 10 years to enforce a judgment. The court can appoint a "receiver" to sell your nonexempt property, such as your business or rental property, to satisfy a judgment. Social Security payments, some pensions, several public assistance or benefits and some insurance or annuities payments are exempt from garnishment in Texas.