4 Ways to Stop Wage Garnishment Now (In 2025)

Your employer just told you a creditor is garnishing your wages. Your next paycheck will be 25% smaller—maybe more. Rent is due in two weeks.

You need this to stop. Today. Not after you "look into it." Not after you call around for advice. Right now.

Good news: You have four concrete options. Bad news: Two of them require you to act in the next 5-10 business days or they won't work.

What You're Actually Dealing With

A wage garnishment means a creditor went to court, won a judgment against you, and got an order forcing your employer to send part of your paycheck directly to them. Once your HR department gets that order, they must comply. They don't have a choice.

Federal law caps most wage garnishments at 25% of your disposable income (the amount left after mandatory deductions like taxes). Some states set lower limits. Child support and federal student loans follow different rules,they can take more.

The garnishment continues until the debt is paid in full, you successfully challenge it, or you file bankruptcy.

Option 1: Negotiate a Payment Plan or Settlement

If your debt was sold to a collection agency, you have leverage. Debt buyers pay 4-10 cents per dollar of debt. A $5,000 debt cost them maybe $300. They'll take less than you owe if it means getting paid now.

Start by calling the creditor or collection agency listed on the garnishment notice. Say this:

"I received the wage garnishment notice. I want to resolve this but the garnishment amount makes it impossible to pay my rent. Can we work out a payment plan that stops the garnishment?"

If you can offer a lump sum,even 40-50% of the balance,they'll often accept it and release the garnishment. If you need a payment plan, propose an amount you can actually afford. If it's at least as much as they're getting through garnishment, they might agree.

Get it in writing. Do not pay a dime until you have a signed settlement agreement or payment plan that explicitly states the garnishment will be released. Once you pay, you have zero leverage.

This works best with debt collectors. If the original creditor still owns the debt and already has a garnishment order, they're less motivated to negotiate,but it's still worth one phone call.

Option 2: Challenge the Garnishment in Court

When you received the garnishment notice, it came with instructions for filing an objection or "claim of exemption." Most states give you 5-10 business days to file. Miss that deadline and you've lost this option.

You can challenge a garnishment if:

• Part or all of your income is legally exempt (Social Security benefits, disability, certain pensions, unemployment insurance)
• The garnishment amount pushes you below the poverty line
• Another creditor is already garnishing your wages (federal law limits how much total can be taken)
• The debt isn't actually yours
• The amount is wrong

To file a claim of exemption, you'll need to complete a form (usually available from the court clerk or online) and submit proof of your income sources. The court schedules a hearing where you explain why the garnishment should be reduced or stopped.

If your only income is Social Security, this is your best move. Those funds are exempt from garnishment for most debts (child support and federal student loans are exceptions). Banks aren't supposed to freeze Social Security funds either, but they do it anyway,filing the exemption claim forces them to back off.

Filing costs between $0-$50 depending on your state. Some courts waive fees if you're below the poverty line.

Option 3: File Bankruptcy to Stop It Immediately

Bankruptcy stops wage garnishment the day you file. Not the day your case is approved. Not after a hearing. The moment the court stamps your petition, the garnishment ends.

This happens because of the "automatic stay",a legal injunction that freezes all collection activity against you. Your employer gets a notice within days telling them to stop withholding funds.

Chapter 7 bankruptcy costs $338 in court fees plus attorney fees ($1,000-$2,000 in most markets). If you can't afford a lawyer, organizations like Upsolve offer free software to help you file on your own. The entire process takes 4-6 months. At the end, most unsecured debts,including the one being garnished,are discharged. You no longer owe them.

Chapter 13 bankruptcy works differently. You propose a 3-5 year repayment plan that consolidates your debts. The garnishment stops, but you make monthly payments to a bankruptcy trustee who distributes the funds to creditors. This is better for people who have assets they want to protect or debts that can't be discharged in Chapter 7 (like recent tax debt or child support arrears).

What bankruptcy won't stop: Child support garnishments. Federal student loans can't be discharged either, though the garnishment pauses during your case. Tax debts older than three years can often be discharged.

If you're being garnished and you're already behind on other bills,rent, utilities, medical debt,bankruptcy is probably your cleanest path forward. One court filing stops all of it at once.

Check if you qualify for Chapter 7 bankruptcy in under 2 minutes.

Option 4: Call a Nonprofit Credit Counselor

Nonprofit credit counseling agencies (certified by the National Foundation for Credit Counseling) offer free consultations. A counselor reviews your income, expenses, and debts, then tells you what options make sense for your situation.

They can't stop a garnishment directly, but they can:

• Help you create a budget that shows what you can afford to offer in a settlement
• Set up a debt management plan (DMP) where you make one monthly payment to the agency and they distribute it to creditors
• Refer you to free legal aid if you qualify

DMPs work for credit card debt and medical bills, but they take 3-5 years to complete and not all creditors participate. If a creditor already has a garnishment order, they have no incentive to accept a DMP. You'd need to negotiate with them separately.

Credit counseling is most useful before you're sued or garnished. Once a judgment exists, your options narrow to the three above.

What Happens If You Do Nothing

The garnishment continues. Your creditor takes 25% of every paycheck (or more, depending on state law) until the debt plus interest and court costs are fully paid. On a $10,000 judgment at 8% interest, that could mean 2-3 years of reduced paychecks.

If you're living paycheck to paycheck, that 25% reduction means missed rent, overdraft fees, disconnected utilities. The financial damage from ignoring a garnishment is usually worse than the damage from bankruptcy.

Which Option Should You Choose?

If most of your income is Social Security or disability: Challenge the garnishment immediately with a claim of exemption. Those funds are protected by federal law.

If you have a lump sum available (from family, a tax refund, selling something): Negotiate a settlement. You'll likely pay 40-60% of the balance and be done with it.

If you're behind on multiple debts and this garnishment is just one problem: File bankruptcy. It stops everything at once and gives you a clean slate in 4-6 months.

If you're current on most bills and this is your only major debt: Try negotiating first, then challenge if that fails.

Moving Fast Matters

Most people lose their chance to challenge a garnishment because they miss the 5-10 day filing deadline. They mean to do it. They're waiting for the right moment to sit down and read the forms. Then the deadline passes and the garnishment kicks in.

If you're going to act, do it this week. Court clerks can answer procedural questions ("Where do I file this form?") but they can't give legal advice ("Should I file this form?"). If you need help deciding which option fits your situation, talk to a bankruptcy attorney. Most offer free consultations.

You're not stuck. The garnishment feels permanent but it isn't. You can stop it,you just need to choose a path and move.

Learn more about filing bankruptcy to stop wage garnishment.