If you are facing wage garnishment and considering filing for Texas bankruptcy, you probably want to know what the laws are concerning how much and what types of wages can be garnished. The good news is that Texas has one of the strictest laws on the books regarding what a lender can garnish from your wages, and which lenders are able to do so. If you live in Texas and are considering bankruptcy, you may be grateful that the law is on your side in this case.
Who Can Garnish
In Texas, almost no creditors are legally allowed to enforce a wage garnishment order against you. Those who are legally entitled to do so are the IRS and state tax bureaus, student loan companies collecting on defaulted student loans, and those seeking payment for unpaid alimony or child support. That’s about it. Other than that, Texas law prohibits other creditors from using wage garnishment to get what you may owe them.
In many other states, your wages can be garnished by any creditor with a court order. There are federally mandated maximums for the amounts that a creditor can garnish your wages, but not for who is legally entitled to wage garnishment. Texas is just about the only state with such a strict anti-garnishment law. Additionally, the state of Texas legally prohibits an employer from firing or terminating your employment due to a wage garnishment order against you. This is not true of many other states, where multiple wage garnishment orders can often mean prompt termination. Texas offers significant protection against wage garnishment.