If a creditor successfully sues you in Texas for unpaid unsecured debt, the ways with which the creditor can enforce a judgment are extremely limited and prohibit wage garnishment. However, wage garnishment is still permitted in Texas if executed by a state or federal entity for other types of debt you owe, such as student loans, child support and taxes.
Writ of Garnishment
A "writ of garnishment" pertains to wage garnishment ordered by a court of law obtained by a creditor to enforce a judgment. Texas statutes, and those in other states, vary disparately when it comes to the amount that can be garnished. However, the maximum amount of garnishment a creditor can pursue is set forth in federal law, which exempts 75 percent of your disposable weekly income, or an amount 30 times the federal minimum wage, whichever amount is greater. States may choose to enforce statutory provisions that conform to federal law exactly, or they may impose less stringent garnishment laws. A state can also opt to prohibit creditors from using wage garnishment as a way to enforce a judgment.
Creditor Garnishment in Texas
In Texas, creditors who obtain a judgment against you for unpaid, unsecured debt cannot use wage garnishment to collect the judgment. State law expressly exempts 100 percent of your wages from garnishment for this purpose.
Other Types of Garnishment
The rules that apply to creditors do not apply to state and federal agencies. Like most states, Texas law permits your wages to be garnished for child support and spousal support. Your wages may also be garnished if you don't pay back a student loan. The federal Higher Education Act can require your employer to garnish 15 percent of your disposable earnings every pay period, or up to 25 percent, if you've defaulted on multiple student loans. If you fail to pay federal income taxes, the Internal Revenue Service may issue a "notice of "levy" on your paycheck, other income, bank accounts or non-exempt real or personal property.
Creditor Recourse
Creditors may find it difficult to collect a money judgment in Texas; not only are wages exempt from garnishment, most debtors own only property that is exempt from judgment, such as real property protected by the state's homestead laws. Such debtors are described as "judgment-proof." State law permits creditors to obtain a writ of execution to levy your nonexempt property, in which case the property may be seized and sold to satisfy the debt. Creditors may also obtain an abstract of judgment to place a lien against your nonexempt real property. Before the property is sold, the debt must be satisfied.
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