Creditors have many ways to collect on a debt. They may call your house, visit you in person, send letters of past due accounts or mark your credit report with delinquencies. At times, creditors may be able to garnish your wages as a final attempt to collect on the debt. Having your wages garnished can cause more financial trouble and leave you facing many more creditors. If you receive a notice that your wages may be garnished, you should know that there are some funds that are exempt from wage garnishment. Furthermore, Texas is one of a few states that restricts most types of creditors from garnishing wages. In short, Texas only allows wage garnishment for child or spousal support payments or for the purposes of paying a student loan debt.
Which Funds Can’t Be Garnished
The most important thing to remember when receiving a notice of judgment requesting wage garnishment is that only a percentage of your wages can be garnished. The percentage is relative to your total amount of disposable income, allowing for a portion to be reserved for living expenses. The amount of earnings that is allowed to be garnished cannot exceed 25% of your disposable income. Creditors cannot take any income that is reserved for specific deductions such as, taxes, unemployment insurance, retirement system payments or Social Security payments. However, any health insurance payments or union dues are not exempt from garnishment.
Things To Know
A creditor must have a court order to be able to garnish your wages. If you receive an informal notification of wage garnishment, or a notice of garnishment from a non-approved source, contact an experienced attorney immediately. Contact a Texas attorney to review the garnishment notice and ensure it is valid. Your attorney will be able to help you obtain the exemptions and place the necessary restrictions on garnishment attempts. One of the most valuable services your attorney can provide is helping you challenge the garnishment order and attempt to have the court overturn the order. Wage garnishment can lead to financial disaster and it is important to allow a qualified professional to assist you during a difficult time.