If your creditors go to court and obtain a judgment against you, they may be able to intercept up to 25 percent of your wages to pay off your debts. Not all states allow wage garnishment and the maximum amount your creditors can garnish depends on your state laws and your personal situation.
Federal Limit
The federal law limits the amount your creditors can take from your pay to 25 percent of your disposable income, which is the amount you take home after deducting federal and state taxes, Social Security, unemployment insurance and medical insurance. If you earn minimum or near minimum wage, you may be able to keep a larger portion of your pay because you have to retain at least 30 times the current federal minimum hourly wage after the garnishment.
State Limit
Some states have their own wage garnishment limits. If your state limits are lower than the federal limit, your creditors have to follow your state laws. For example, Florida laws don't allow any wage garnishment if you are the head of your household. Texas, North Carolina, South Carolina and Pennsylvania don't allow wage garnishment for unsecured debts. You can find out what your state limit is by contacting your sheriff or marshal's office.
Garnishment Priority
If you have more than one judgment against you, all your creditors can only take up to the federal or state limit from your pay. Generally, the creditor who files for garnishment first gets paid first. However, some creditors get the priority regardless of the order of judgment filing. For example, garnishments for delinquent taxes and child support always get paid first. These priority debts can take as much as 50 percent of your pay or even more, depending on your state laws and the court order.
Other Considerations
If the garnishment results in you not having enough money to support yourself, you may be able to file a form with the court to object to it. If you get your income from Social Security, no creditor can ever take it from you. Unemployment insurance, workers' compensation awards, relocation benefits and benefits from disability or health insurance are also exempt from garnishment, unless the judgment is for child or spousal support.
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