How Much of My Paycheck Can a Creditor Garnish?

Your paycheck came in short, and payroll says a creditor has a court order. How much can they take?

Less than most people fear, and in DC often nothing at all. The answer depends on where you work and what you earn, because federal law sets the ceiling and each jurisdiction sets its own floor.

Does a creditor need a court order?

For an ordinary debt, yes. A credit card company, a debt buyer, a landlord or a medical provider has to sue you and win a judgment first. Garnishment is the last step, not the first, and if you have just been served with a lawsuit you still have time to fight it.

Three creditors can garnish without suing: child support agencies, the IRS, and the Department of Education on defaulted federal student loans. Those follow their own limits and are not covered by the numbers below.

The federal cap

The federal Consumer Credit Protection Act limits an ordinary garnishment to the lesser of 25 percent of your disposable earnings, or the amount by which your weekly disposable earnings exceed 30 times the federal minimum hourly wage. Disposable earnings are what is left after deductions the law requires, such as taxes, Social Security and Medicare.

That is the most any state can allow. DC, Maryland and Virginia each allow less.

How much can be garnished in DC?

DC first sets aside 40 times the DC minimum hourly wage for each week. A creditor can reach only 25 percent of whatever your weekly disposable wages are above that line.

If you earn under the line, nothing comes out. The DC minimum wage is well above the federal one, so this floor can protect a lower-wage worker’s pay completely. DC also lets you ask the court to protect more because of hardship, and the withholding stops as soon as your employer receives a copy of that motion. Only one wage attachment runs at a time.

How much can be garnished in Maryland?

Maryland exempts the greater of 75 percent of your disposable wages, or 30 times the Maryland minimum hourly wage multiplied by the number of weeks in the pay period. Maryland’s minimum wage is higher than the federal one, so the protected floor is higher too.

Maryland also exempts any medical insurance payment your employer deducts from your wages. Federal law does not, so check your pay stub.

A Maryland judgment is enforceable for 12 years and can be renewed, and interest runs on it at the legal rate.

How much can be garnished in Virginia?

Virginia uses the federal 25 percent cap, but its floor is 40 times the minimum hourly wage, not 30, and Virginia uses its own minimum wage when it is higher than the federal one. Lower-wage workers keep more than federal law alone would give them.

Parents supporting dependent minor children at home, with household income under a limit set by Virginia law, can protect an additional amount each week. You claim it with a sworn affidavit and proof.

A Virginia wage garnishment summons runs for a limited time, no more than 180 days, and the creditor has to file again to keep collecting. Each new summons comes with a new claim-for-exemption form.

How do the three compare?

How do I stop a garnishment?

A creditor already collecting from your paycheck has little reason to negotiate. Some will release the writ for a lump sum, and any deal has to be in writing with a promise to file the release with the court.

If you can’t pay the debt off, a Chapter 7 or Chapter 13 filing triggers the automatic stay, a court order that stops the garnishment the day the case is filed. Chapter 7 can wipe out the judgment debt. Chapter 13 puts it into a plan. Wages taken in the weeks before you file can sometimes be recovered.

If your wages are being garnished in DC, Maryland or Northern Virginia, call me at (202) 448-5136. Have the writ and your last two pay stubs ready. I will check whether your employer is taking the right amount and whether bankruptcy is the cleaner fix. The consultation is free.

Don’t wait. Every paycheck the garnishment runs is money you may not get back.