How Many States Allow Creditors to Garnish Wages?

Wage garnishment is a last resort for creditors trying to collect a legal debt. One way to do so is receive what is called a writ of garnishment from the court. This writ directs an employer to take a percentage, which varies from state to state but is in the 10-to-25 percent range, from an employee's paycheck until the debt is satisfied. Though federal law is the controlling authority on the topic, some states have chosen to minimize the circumstances under which garnishment can occur.

Anti-Garnishment Sentiment

There are four states---Texas, Pennsylvania, North Carolina and South Carolina---which take as hard a line as possible against allowing judgments to be collected through means of garnishment, though this stance normally only applies to third-party creditors like credit card companies or other consumer type debt. Matters that involve delinquent state or federal taxes, child support, bankruptcy, alimony or federal student loans are different. Most states use any legal means necessary to pursue child support especially.

New Hampshire

New Hampshire tries to straddle the line between a pro- and anti-garnishment stance. State law does not outright reject the practice, except in federally mandated cases, but does emphasize that garnishment is not the preferred method for judgment collection, pointing out that the process of producing a writ is a financial burden on creditors and places a resource burden on the court. Kansas has an interesting "purchased paper" law that only allows garnishment on sold debt if the sale occurred after the court's judgment.

Consumer Protection Act

The Consumer Credit Protection Act was passed by the federal government, and it governs how a garnishment can be carried out in the United States. The CCPA established a cap on the amount of money that can be withheld from a paycheck at 25 percent, though some state laws set a lower rate. When two rates are available, the court goes with the lower amount. This legislation also stands in the way of states that would like to do away with garnishments completely. Since federal law takes precedence, certain types of garnishment orders must be allowed to proceed.

Bankruptcy

One way to stop wage garnishment, though not suggested until consulting with a tax or legal consultant, is to file for Chapter 7 bankruptcy. All debt collection measures, including wage garnishment, must cease while the bankruptcy process is underway. Declaring bankruptcy is a serious decision and should not necessarily be made solely to prevent further garnishment, but it is an option of which consumers should be aware.