If you’re familiar with wage garnishment, you’re probably aware that the laws can vary from state to state in the United States. However, have you ever wondered about the wage garnishment laws in Texas and how they can help you in case of debt? This article will provide information on what you need to know about wage garnishment in the state of Texas, United States. Additionally, it will give you details on how to successfully protect your wages from garnishment if necessary.
More information on Wage garnishment in Texas
A ‘wage garnishment’ or ‘wage attachment’ is when your employer is ordered to deduct a specific amount from your pay and send it directly to a creditor. However, before a creditor can garnish your salary, they must first obtain a money judgment from a court.
It’s important to know that creditors cannot seize your entire paycheck. The amount that can be garnished is subject to various laws and legal limitations. Federal law limits the garnishment amount to 25% of your disposable weekly earnings (the amount remaining after mandatory deductions) or the amount by which your disposable weekly earnings exceed 30 times the federal minimum hourly rate, whichever is smaller. Additionally, Some states have lower percentage limits on wage garnishment.
In Texas, wages can only be garnished for specific purposes, such as child support, spousal support, federal student loans, and other federal debts like taxes. Creditors are not allowed to garnish your income for consumer debts.
What you need to know about wage garnishment in Texas, US
From limitations on wage garnishment to issues related to unpaid child support and defaulting on federal student loans, dealing with wage garnishment in Texas can raise various questions. Here are the three most crucial things you need to know and how you can handle them:
Limits on Wage Garnishment in Texas
In Texas, creditors are not allowed to garnish your earnings for most debts, except for court-ordered child support and spousal maintenance. However, if you owe federal debts like taxes and student loans, your employer must comply with garnishment orders. Consumer debt garnishments are not allowed. If you work for an out-of-state company or receive payment from a non-Texas source, a creditor may serve a wage garnishment order in that state. Additionally, it is always a good idea to seek legal advice if you find yourself in such a situation.
Garnishment Limits for Unpaid Child Support
Starting from 1988, every child support order has automatically included an income withholding order. In case you fall behind on child support payments, the other parent is capable of seeking a wage garnishment order from the court.
It is crucial to acknowledge that federal law does not allow this form of wage garnishment. If you are presently providing support to a spouse or child who is not the subject of the order, a deduction of up to 50% of your disposable earnings may be done to pay child support. If you do not support a spouse or child, this percentage can increase to 60%.
Garnishment Limit for Federal Student Loans in Default
If you have defaulted on your federal student loan, the U.S. Department of Education or any affiliated collection agency has the legal right to garnish up to 15% of your wages. This process is referred to as ‘administrative garnishment.’ However, according to federal law, you are entitled to retain an amount equal to 30 times the current federal minimum wage per week. This law ensures that income up to 30 times the minimum wage per week is protected from garnishment.
How to Protect Your Wage From Garnishment
If you receive a notice of a wage garnishment order, you have the opportunity to take steps to protect or ‘exempt’ some or all of your wages. This can be accomplished by submitting an exemption claim or raising an objection in court. The process for objecting to a wage garnishment varies depending on the type of debt pursued by the creditor and the laws of your state. And finally, another option to stop most garnishments is by filing for bankruptcy. Your state’s exemption laws will determine the amount of income you can keep.
