Garnishments

Garnishments are a legal process by which a portion of a debtor's income or assets is withheld and directed to satisfy a debt or judgment. They are typically used after a creditor obtains a court judgment allowing collection, or by certain government agencies through statutory authority.

In the United States, wage garnishment is the most common form, where an employer withholds a portion of wages and sends it to the creditor. Bank garnishment and tax levies are also used to seize funds or wages for unpaid debts. Debts such as child support and alimony, as well as federal student loans, are typically handled under special rules with higher priority.

Federal law under the Consumer Credit Protection Act restricts most wage garnishments and requires notices and exemptions. States may set additional limits and protections. A typical federal rule allows up to 25% of disposable earnings or the amount by which weekly earnings exceed 30 times the federal minimum wage, whichever is lower. Exemptions may shield portions of pay and certain benefits, varying by jurisdiction.

The process usually begins with a judgment; the creditor issues a writ or notice to the debtor’s employer or bank, who then withholds or freezes funds and remits them to the creditor. Debtors can sometimes challenge a garnishment or claim exemptions through a court procedure or settlement. Bankruptcy can also affect garnishment in some cases.

Garnishments reduce a debtor’s available income and liquidity while enabling creditors to recover debts, but they can impose hardship and vary widely by jurisdiction.