Texas Wage Garnishment: Know Your Rights and Options

Wage garnishment can feel like a sudden financial crisis. Money that you rely on to pay rent, buy groceries, or cover emergency expenses disappears from your paycheck before it ever reaches your bank account. But if you live in Texas, you benefit from some of the strongest protections against wage garnishment in the country.

Under Texas law, most creditors cannot garnish your wages to collect on consumer debts like credit cards or personal loans. However, there are important exceptions for child support, spousal support, federal student loans, and certain taxes owed to the government. In this article, we’ll delve into how wage garnishment works in Texas, the limited scenarios in which it’s allowed, and how tools like bankruptcy can help you keep more of your hard-earned income.

Wage Garnishment Basics in Texas

Generally, a creditor must obtain a court judgment before garnishing your wages. Yet Texas provides a significant shield for residents by effectively prohibiting wage garnishment for most consumer debts. Credit card companies, medical bill collectors, and payday lenders typically can’t use your paycheck as a direct source of repayment without your consent.

But this rule doesn’t mean Texas residents are immune to all forms of wage garnishment. Certain obligations, like child support, spousal support (alimony), overdue federal student loans, and tax debts (especially IRS debts) can still be withheld from your paycheck. When it comes to child or spousal support, for example, federal law allows up to 50% (or even 60%, under specific conditions) of your disposable earnings to go toward fulfilling support obligations.

Child Support and Spousal Maintenance

Texas courts take the financial well-being of children and ex- spouses seriously. Once a child support or spousal maintenance order is in place, the paying party (often the non-custodial parent) is required to meet these obligations. If payments fall behind, a court can authorize the garnishment of wages to collect the overdue amounts.

The federal Consumer Credit Protection Act (CCPA) caps garnishment for support at 50% of disposable earnings if you’re supporting another spouse or child, and 60% if you’re not. An additional 5% can be garnished if payments are more than 12 weeks in arrears.

Tax Debts and Federal Student Loans

Delinquent federal tax bills or defaulted student loans can also lead to wage garnishment in Texas. The Internal Revenue Service (IRS) has broad authority to institute a wage levy without a traditional court order. For student loans, wage garnishment may occur after you fall behind on payments, allowing the U.S. Department of Education or its assigned collection agency to take up to 15% of your disposable earnings.

Although the process is more streamlined for government debts, borrowers typically receive notice and an opportunity to arrange a payment plan or file an appeal before garnishment starts. If you find yourself facing federal garnishment, contact a legal or financial professional immediately to discuss possible solutions like rehabilitation programs or settlement options.

Using Bankruptcy to Stop Wage Garnishment

If you’re being overwhelmed by debt collectors or threatened with garnishment, bankruptcy can offer immediate relief. The moment you file for Chapter 7 or Chapter 13, the automatic stay goes into effect under Title 11 of the U.S. Code. This stay generally prohibits creditors from continuing or initiating garnishments, although it won’t typically erase existing child support or alimony obligations.

Chapter 7 bankruptcy may eliminate many types of unsecured debt, such as credit card balances and medical bills. This discharge can free up income to manage child support or tax debts more effectively. On the other hand, if you file for Chapter 13, you’ll propose a three- to five-year repayment plan. During this time, creditors must comply with the terms of the plan rather than garnishing your pay directly. Keep in mind that certain debts—especially child support and recent tax obligations—must still be paid in full through either the plan or other arrangements.

References

1. Texas Constitution, Article XVI (homestead and property protections). Retrieved from: https://statutes.capitol.texas.gov

2. Texas Civil Practice and Remedies Code, Title 2. (n.d.). Retrieved from: https://statutes.capitol.texas.gov

3. Title 11 of the U.S. Code (Bankruptcy Code). (n.d.). Retrieved from: https://uscode.house.gov/browse/prelim@title11

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Laws change frequently, and individual circumstances vary. For personalized guidance, consult a licensed attorney in Texas.