What Wages May Be Garnished?

When you get into debt, one of the potential consequences of not making payments on the debt is wage garnishment. This is a process by which a creditor takes part of your paycheck every time you get paid. In regard to wage garnishment, the creditor can only take money from specific sources.

Wage Garnishment Basics

When you owe a creditor a debt and do not pay off the balance, the creditor may file a lawsuit against you. After the lawsuit is filed, the creditor can get a judgment against you from the court. Once a judgment is received, the creditor can work with the local sheriff's office to set up a wage garnishment. At that point, a portion of your paycheck from your employer is deducted and given directly to the creditor.

Amount of Garnishment

When a creditor sets up a wage garnishment on your paycheck, it cannot simply take your entire paycheck. The creditor can only take a percentage of the amount that you earn from your job. The federal government has set a maximum of 25 percent of your disposable earnings that can be taken through garnishment. Each state has laws in regard to how much can be taken out of your paycheck. Some states do not allow garnishment or have very low percentages, while many others simply go with the 25 percent rule of the federal government.

Government Benefits

If you receive some kind of financial government benefits, the creditor typically cannot garnish any of them as they are received. For example, if you get Social Security benefits, disability benefits or veterans benefits, a creditor cannot garnish this money. If you receive civil service or federal retirement benefits, you can also exempt them from wage garnishment. Student assistance and railroad retirement benefits are also not eligible for garnishment when you have a judgment against you.

Exceptions

Even though, as a general rule, military and government benefits cannot be garnished for a debt, some exceptions exist. For instance, if you have a judgment against you from child support or spousal support after a divorce, these benefits can be garnished. With these types of debt, the court can also take a larger percentage out of your benefits when compared with what regular creditors can take through a wage garnishment. If you go through a divorce, you must make the required payments if you want to avoid garnishment.