Will Creditors Attach Your Wages?

If you don't pay your creditor, it may seek an alternate debt recovery method known as "wage garnishment." Through wage garnishment, the creditor asks a court for permission to seize a portion of your wages from your employer before you receive your paycheck. Not all creditors can attach your wages and, of those that can, not all will put forth the effort required to do so.

State Restrictions

Your state of residence plays a role in determining whether an unpaid creditor can attach your wages. Some states, such as Pennsylvania, grant wage garnishment orders only to certain creditors while other states prohibit wage garnishment in its entirety. Your state code contains detailed information regarding garnishment laws in your state.

Filing a Lawsuit

Unless your creditor is the federal government, it must win a lawsuit against you before it can attach your wages. Lawsuits require time and effort on the part of the creditor -- even more so if you have a reasonable defense and notify the creditor that you plan to appear in court and contest the lawsuit. Because of the additional effort required to sue you, many creditors will not bother filing a lawsuit for debts less than $1,000. By opting not to file a lawsuit, a creditor forfeits its ability to garnish your wages.

Pre-existing Garnishments

A garnishment order typically instructs your employer to withhold the maximum amount permitted under the law. While this provides the creditor with a viable collection method, it restricts other creditors' ability to recover payment through wage garnishment. Subsequent creditors can issue a wage attachment but cannot actively garnish your wages until the initial garnishment order either expires or has been satisfied.

Employment Location

If you change employers while subject to a garnishment order, your creditor must track down your new employer, request another garnishment order from the court and serve it upon your employer. While some creditors will obtain subsequent garnishment orders each time your employer changes, others will not put forth the effort to locate and serve your new employer.

Creditors typically have difficulties garnishing wages from self-employed individuals because the self-employed do not often pay themselves a traditional salary. If you are self-employed, your creditor will likely pursue an alternate form of garnishment rather than attempting to attach your wages.

Wages Vs. Income

You only receive wages if your income is derived from work you perform. Income, however, can come from a variety of sources and certain forms of income are protected from garnishment under federal law. Social Security, unemployment, public assistance, retirement pensions and child support are all exempt from seizure by most creditors.

The government enjoys attachment rights that private creditors, such as credit card companies, do not. If you owe a defaulted student loan, back taxes or another type of government debt, the government will attach your exempt income in addition to garnishing your wages.