Can My Wages Be Garnished in Tennessee for a Credit Debt That I Haven't Paid?

Having unpaid debt weighs heavily on you, and fearing your wages will be garnished can cause distress and worry. Tennessee has laws that govern wage garnishment. While your wages can be garnished for unpaid debt, there are steps a creditor must take to be able to garnish wages. There is also a limit to what a creditor can take from your paycheck.

Student Loans, Taxes and Child Support

There are three types of debt that do not require legal intervention to garnish your wages, tax refunds or bank accounts: Student loans, taxes and child support. The government agencies responsible for these debts must provide you notice of the pending wage garnishment, and you will have approximately 30 days to challenge the garnishment; however, your employer must withhold a percentage of your wages once the garnishment paperwork is received. A court order is not required to uphold the wage garnishment.

Judgments

All other creditors must go to court and be granted a judgment to garnish your wages. This process involves the creditor providing you notice of the court date, so you can prepare and attend the legal hearing. A creditor who attends the court hearing and can show the judge that you do, in fact, owe the debt and have not repaid it may get the judge to sign the judgment. The judgment is then sent to your employer, who is required by Tennessee and federal law to garnish a portion of your wages.

Tennessee Law

Tennessee has not established guidelines separate from federal law. Federal law allows a creditor to take a maximum of 25 percent of an employee's disposable wages. The employer is required to garnish your wages until the debt is repaid in full. An employer is barred from terminating your employment due to a wage garnishment.

Preventing a Judgment

Once a judgment has been granted, the creditor has legal rights to take the money from your bank account, place liens against your property and garnish your wages. Negotiating a repayment plan with a creditor prior to a judgment is in your best interest. Coming to an agreement outside of court gives you more control of the situation, allowing you to negotiate what you can afford, rather than letting the creditor take 25 percent of your wages. Negotiating the debt repayment will also prevent a judgment from being recorded on your credit report, which would cause further damage to your credit score.