Can Creditors Garnish Wages for Money?

If a person is in debt, he risks having this debt collected forcibly, through the garnishment of his wages by a creditor. Garnishment happens when a creditor gets a civil judgment against the debtor and then asks a judge to enforce this debt through the imposition of a garnishment, in which the debtor's assets are seized from the person's employers. Garnishment can happen in only some cases, though.

Lawsuits

All garnishment must be authorized legally through the permission of a judge. No garnishment can be conducted unless a judge first approves it. The only way is for a creditor to win a lawsuit and be awarded damages that the debtor must pay. However, there are a number of situations in which a person cannot garnish another person's wages.

People Exempt from Garnishment

There are a number of parties exempt from garnishment. Often, according to state law, a person cannot have his wages garnished if he is not making enough money. This is particularly true if the person has children or other dependents to support. The exact income limit below which a person cannot have his debts garnished depends on state law. In no case can a person have more than 35 percent of his wages garnished.

Types of Debts

There are only some types of debts that can result in garnishment. The rules for which kinds of debts can be garnished and which cannot depend on the state. However, in nearly all cases, debts owed to the government, either state or federal, can come out of a person's wages. A person should check with an attorney to determine whether his private debt is garnishable.

Types of Income

There are also certain types of income that cannot be subject to garnishment. For example, many types of retirement and disability benefits cannot be garnished, nor can they be frozen and removed from a bank account. In addition, most federal benefits cannot be garnished, except by state and federal government. Sometimes tax refunds can be garnished, but generally only by governments -- except in Michigan, where private creditors can apply to garnish a refund.