Wage Garnishment

paycheck

Also known as: wage garnishment, garnishment, income withholding order

Updated · Written and reviewed by Konstantin Iakovlev

Detailed explanation

Federal Consumer Credit Protection Act (CCPA) sets the floor; state law often more protective (TX/PA/NC/SC ban most non-government garnishment entirely; NY caps at 10%). Priority order: federal taxes → child support → student loans → bankruptcy → consumer judgments. Federal taxes can take everything above an exempt amount (~$540/week single, varies). Federal student loans (Department of Education) garnish 15% of disposable earnings administratively, no court order needed. Defaulted private student loans require a court judgment first. Bank account levy is a separate process. Filing bankruptcy stops most garnishments via automatic stay (child support and recent taxes still go through).

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