A wage garnishment is a court order or government agency order sent to a person’s employer. The purpose of the order is to deduct money from the person’s pay until the debt is satisfied. Once the money is deducted, it’s sent to the creditor.
Does Texas Law Allow My Paychecks to be Garnished?
In Texas, creditors aren’t allowed to garnish wages without a judgment unless the debt is for one of the following:
- Defaulted student loan
- Unpaid income taxes
- Court order to pay child support or spousal support
Are There Limits on a Texas Wage Garnishments?
Yes. Federal law allows creditors to take up to 25 percent from a person’s paycheck. However, the garnishment amount in Texas can vary according to the unpaid debt such as:
- Child Support: Up to 50 percent of disposable income
- Unpaid Taxes: The amount garnished depends on number of dependents and deduction rates
- Defaulted Student Loans: Either 15 percent of disposable income or 30 times the minimum wage
- Spousal Support: Up to 50 percent of disposable income
Can a Creditor Garnish My Wages If I Work for an Out-of-State Company?
Yes, a creditor can garnish a person’s wages if the money earned comes from outside the state of Texas. This is also the case for anyone who receives money from a source outside of Texas.
Are There Other Ways a Creditor Can Satisfy the Debt I Owe?
Yes, a creditor may still be able to seize assets, like a bank account or place a levy on assets, until the debt is paid.
Can I Get Fired in Texas For a Wage Garnishment?
No. Both federal and Texas law prohibits an employee from being terminated for a wage garnishment. If it does occur, the firing is considered a wrongful termination.
Should I Talk to a Lawyer in Texas about My Wage Garnishment?
Yes. Contact a lawyer to discuss ways to resolve your wage garnishment such as filing for bankruptcy.