Can Anybody Garnish Your Wages?

A wage garnishment is when a court issues a judgment requiring your employer to withhold a portion of your paycheck and send it to a creditor. Your wages can be garnished only with a court order; your wages can't be garnished directly by any creditor. And your wages can't be garnished by just anyone; they have to file a lawsuit and win, then serve the court judgment to your employer.

How Garnishment Works

Once a creditor has won a court judgment and your employer has been served, up to 25 percent of your net pay can be garnished. Child support is the exception; 50 percent or more of your net pay can be garnished for back child support. Generally, only one garnishment at a time can be in place, but again, child support is an exception to that rule. Your employer is served with a notice of garnishment and is required to comply. Your employer can't fire you over one garnishment, but, in general, you're not protected if you have multiple garnishments. Some states provide additional protection against being fired for multiple garnishments.

Who Can Be Garnished

Not everyone can be garnished. You have to earn wages (in other words, you can't be self-employed). You have to be left with 30 times the minimum wage ($7.25 as of 2011) each week. Social Security, welfare, unemployment, disability payments or a pension also can't be garnished. If the garnishment doesn't leave you enough money to live on, you can also appeal the amount of the garnishment with the court.

Student Loans

If you default on your student loans, your loan servicer can garnish your wages without a court order. Up to 15 percent of your wages can be garnished. You have to be notified at least 30 days in advance of the garnishment and you can still set up a repayment plan at that time. You can only appeal the garnishment if you've returned to work in the past 12 months after being fired or laid off.

Taxes

If you owe the Internal Revenue Service back taxes, the agency can garnish your wages without a court judgment. The amount of pay you can keep varies depending on the size of your household. If you're being garnished by the IRS, the agency sends a notice to your employer and your employer is required to give you a copy of it. State and local tax agencies can also garnish your wages, but how much and how often varies by area.