Important Info on Wage Garnishment in Article from CBS News

CBS News recently published a helpful article with important information on wage garnishment. If you are being sued by a debt collector, please reach out to an attorney to protect yourself from a potential wage garnishment. A summary of the article from CBS News is below, and a direct link to the full article is available at the bottom of this post.

🔍 Overview

Once a creditor or debt collector obtains a court judgment against you, wage garnishment may begin—meaning money is deducted from your paycheck before it reaches your bank account. This process can have significant financial impact.

⏳ Duration of Garnishment

• For most consumer debts (e.g., credit cards, medical bills, personal loans), garnishment typically continues until the outstanding debt is paid in full. That includes accrued interest, court costs, and attorney fees. Since interest and fees can build over time, garnishment may last for years.

• Federal student loans are an exception: they can be garnished administratively, meaning no court judgment is needed. These garnishments may take up to 15% of disposable income and continue until the loan is resolved or successfully challenged.

• For tax debts, the IRS can garnish wages without court involvement, continue indefinitely until the debt is paid, and isn't bound by the limits that apply to consumer debts.

  
  

💰 Legal Limits on Garnishment

• Under federal law, garnishment for consumer debt is limited to the lesser of:

  • 25% of your disposable earnings, or

  • The amount by which your weekly pay exceeds 30 × the federal minimum wage. 

• These limits do not shorten how long garnishment lasts, only how much is taken each pay period.

  
  

🛡️ How to Stop or Reduce Garnishment

If wage garnishment is in effect:

• Challenge it in court: You may be able to reduce or eliminate garnishment if it's improperly issued or causes undue hardship. Courts may grant exemptions.

• Negotiate a settlement: Some collectors accept lump-sum payments to end garnishment.

• File for bankruptcy: An automatic stay often stops garnishment immediately, although not all debts (e.g. child support) are affected.

• Check state-specific protections: Certain states provide stronger safeguards or outright prohibit garnishment for consumer debts.

  
  

✅ Bottom Line

• Wage garnishment generally continues until the full judgment debt is satisfied, including fees and interest.

• Limits on how much can be taken per paycheck are defined by federal law, but state laws may offer greater protection.

• Administrative garnishments (e.g. student loans, taxes) follow different rules and may proceed without court intervention.

• Taking proactive legal or financial steps early—before garnishment starts—can help preserve income and protect your financial well‑being.

You can read the entire article from CBS News here.