How to Stop Wage Garnishment in Texas

Are you struggling with wage garnishment in Texas and unsure how to stop it? According to the Texas BAR, 

To halt wage garnishment in Texas in 2024, consider filing for bankruptcy, which triggers an automatic stay preventing creditors from garnishing your wages.

As experienced debt relief attorneys, we specialize in helping Texans understand wage garnishment laws effectively. Read on to discover actionable steps and expert insights to protect your income.

What Is Wage Garnishment in Texas?

Wage garnishment in Texas is a legal process allowing creditors to deduct funds directly from your paycheck for specific debts like child support, unpaid taxes, and defaulted federal student loans. Texas law prohibits garnishment for most consumer debts, such as credit cards.

Here are the key details:

• Texas does not allow wage garnishment for non-governmental debts like credit cards.

• Wages can only be garnished for:

  • Child support and spousal support

  • Unpaid taxes

  • Defaulted federal student loans

If you owe other types of debt, creditors cannot garnish your wages in Texas, offering strong wage protection under state law.

Who Can Garnish My Wages in Texas?

The following debts are eligible for wage garnishment in Texas:

1. Court-ordered child support and spousal maintenance (alimony)

2. Unpaid federal income taxes

3. Defaulted federal student loans

Creditors trying to collect on personal loans, credit card debt, or other non-governmental debts cannot garnish wages in Texas. Debt collectors and lenders are powerless to use wage garnishment as a collection method.

What Are the Limits on Wage Garnishment in Texas?

Wage garnishment amounts in Texas depend on the type of debt:

• Child or spousal support: Up to 50% of your disposable income can be garnished.

• Federal back taxes: The IRS can garnish varying amounts based on your dependents and deduction rate.

• Federal student loans: Up to 15% of your disposable income or 30 times the minimum wage can be withheld.

Texas laws protect a significant portion of your wages from garnishment, ensuring you can cover essential living expenses.

How Does Bankruptcy Stop Wage Garnishment?

To stop wage garnishment in Texas, filing for bankruptcy is the most effective solution. Once your attorney files your bankruptcy petition, an automatic stay is granted, immediately halting any creditor’s ability to garnish your wages.

Bankruptcy also prevents your creditor from:

• Filing lawsuits

• Calling or harassing you for payments

Chapter 7 Bankruptcy

• Chapter 7 eliminates unsecured debts, such as credit card balances, medical bills, and personal loans.

• Once discharged, you are no longer responsible for these debts, and creditors cannot garnish your wages.

• Texas exemptions typically allow you to keep your home, car, and other essentials during Chapter 7 bankruptcy.

Chapter 13 Bankruptcy

• Chapter 13 allows you to restructure debts into a manageable repayment plan over 3-5 years.

• If you have income and don’t qualify for Chapter 7, Chapter 13 can stop wage garnishment while helping you repay debts over time.

Bankruptcy is the most effective legal tool to stop wage garnishment and eliminate overwhelming debt.

What Happens If You Ignore Wage Garnishment?

Ignoring a wage garnishment order can have severe financial consequences:

1. Smaller Paychecks: Losing part of your paycheck can make it difficult to cover basic expenses.

2. Credit Damage: Creditors will report wage garnishment to credit bureaus, damaging your credit score.

3. Collection Actions: Creditors may pursue further legal action or seize additional assets.

Addressing wage garnishment promptly with a qualified attorney can help you avoid deeper financial hardship.

How Can a Texas Debt Attorney Help You Stop Wage Garnishment?

If you receive a wage garnishment order in Texas:

1. Contact a Texas debt relief attorney immediately to understand your options.

2. A lawyer can help you:

   • File an exemption claim to protect wages

   • Raise an objection to garnishment if errors exist

   • File for bankruptcy to stop garnishment through an automatic stay

Working with an attorney ensures you meet deadlines, follow legal procedures, and effectively challenge wage garnishment orders.

What Are Your Rights Under Texas Wage Garnishment Laws?

Texas laws provide strong protections for workers:

• Most creditors cannot garnish wages for non-governmental debts like credit cards or personal loans.

• Employers cannot fire you for having one wage garnishment order.

• Federal debts, such as taxes or student loans, are the primary exceptions.

If creditors or employers violate these laws, a debt attorney can help protect your rights and pursue legal remedies.

How Can You Stop Wage Garnishment Without Filing Bankruptcy?

While bankruptcy is the most effective option, you can also:

1. Pay the Debt: Paying the balance in full stops garnishment immediately.

2. Negotiate a Settlement: Contact the creditor to arrange a lump-sum payment or repayment plan.

3. File an Exemption: Claim exemptions to reduce or stop garnishment based on your financial hardship.

These alternatives can help you stop wage garnishment without pursuing bankruptcy, though they may not eliminate the underlying debt.

What Resources Are Available for Texans Facing Wage Garnishment?

Texas offers several resources to help individuals dealing with wage garnishment:

• Texas State Law Library: Provides legal guides and information on wage garnishment laws.

• Texas Judicial Branch: Outlines garnishment procedures and deadlines.

• State Bar of Texas: Connects individuals with experienced debt relief attorneys.

These resources can provide valuable support and information when dealing with wage garnishment.

How Do You Prevent Wage Garnishment Before It Starts?

Stopping wage garnishment before it begins can save you financial stress. Here are steps to consider:

1. Communicate with Creditors: Contact creditors as soon as you miss a payment to negotiate repayment options.

2. Set Up a Payment Plan: Many creditors will agree to structured payment plans that help avoid court action.

3. Debt Settlement: Consider working with a debt settlement professional to resolve debts for less than the full amount owed.

4. Seek Legal Advice Early: A Texas debt attorney can provide guidance and help prevent legal actions from escalating.

By being proactive, you can avoid wage garnishment and manage your debts before they become unmanageable.

Ready to Stop Wage Garnishment and Take Control of Your Finances?

Wage garnishment can create significant financial strain, but you don’t have to face it alone. At DebtBusters, our experienced Texas bankruptcy attorneys can help you stop wage garnishment, protect your income, and eliminate your debt.

Contact us today at (866) 223-4395 to schedule a free, no-obligation case evaluation and take the first step toward financial freedom.

Prevent Wage Garnishment in Your State

If you failed to respond to a debt lawsuit, the court might have issued a default judgment against you, allowing debt collectors to garnish your wages, which can be a significant financial strain.

To assist you in taking action, we’ve developed detailed guides on how to prevent wage garnishment in each U.S. state. Access the specific guide for your state below to learn the steps you can take to safeguard your income.