How much of my paycheck can a creditor garnish?
Federal law (the Consumer Credit Protection Act, Title III) caps garnishment at 25% of your disposable earnings or the amount by which your weekly earnings exceed 30 times the federal minimum wage ($217.50/week) — whichever is less. Many states set lower limits. Four states — Texas, Pennsylvania, North Carolina, and South Carolina — prohibit consumer wage garnishment entirely for credit card, medical, and personal loan debt.
Can my Social Security be garnished by a creditor?
Ordinary consumer creditors (credit card companies, medical debt collectors) cannot garnish Social Security retirement or disability (SSDI) benefits. Section 207 of the Social Security Act provides this protection. The IRS, federal student loan programs, child support enforcement, and certain other government agencies can garnish Social Security under separate rules, but private creditors cannot.
What is "disposable earnings" for garnishment purposes?
Disposable earnings are what remain after legally required deductions — federal and state income taxes, Social Security (FICA), and Medicare. Voluntary deductions like health insurance premiums, 401(k) contributions, union dues, and HSA contributions do not reduce the garnishment base. The garnishment calculator above walks through the exact calculation.
Can a creditor garnish my bank account instead of my wages?
Yes. A bank levy is different from wage garnishment but requires the same underlying court judgment. A creditor with a judgment can serve your bank with a levy order and freeze funds. Certain funds — including the prior two months of directly deposited Social Security, VA benefits, and other federal benefits — have a protected floor under federal law. Keeping protected income in a dedicated account makes enforcement of that protection cleaner.
Does filing bankruptcy stop a wage garnishment?
An automatic stay issued when you file bankruptcy immediately stops most wage garnishments and bank levies. Debt settlement does not automatically stop garnishment — however, settling the underlying judgment debt ends the wage attachment, and in some states filing a Claim of Exemption can pause or limit garnishment while negotiation proceeds.