How to Stop Wage Garnishment in California (5 Legal Options)

California creditors with a judgment can seize up to 25% of your disposable income every paycheck. That's $200 gone from an $800 weekly paycheck, or $10,400 per year. If you're already behind on bills, losing a quarter of your income will bury you.

The good news: wage garnishment doesn't happen overnight. Creditors must sue you, win in court, and obtain a judgment first. That process takes months, and you have multiple chances to stop it. Even after garnishment begins, you can file exemptions or negotiate a settlement to end it.

This guide walks through five proven methods to stop wage garnishment in California, plus how much creditors can actually take under state law.

How much can creditors garnish in California?

California follows federal wage garnishment limits, but state law offers slightly better protection in some cases. Under Cal. Civ. Proc. Code § 706.050, creditors can garnish the lesser of:

• 25% of your disposable weekly earnings
• 50% of the amount your disposable earnings exceed 40 times the state minimum wage

California's minimum wage is $16.50 per hour as of 2025, so 40 times that equals $660 per week. If your disposable income is $660 or less, creditors cannot garnish anything under the second calculation. They'd be limited to 25% of whatever you earn.

Let's say you earn $900 per week after taxes and required deductions. Here's the math:

• 25% of $900 = $225
• $900 minus $660 = $240, times 50% = $120

The creditor can garnish $120 per week, the lesser amount. Over a year, that's $6,240 straight to your creditor.

Important: disposable income means wages after mandatory deductions like taxes, Social Security, and court-ordered child support. It does not subtract voluntary deductions like 401(k) contributions or health insurance premiums.

Exceptions: student loans, taxes, and child support

The limits above apply to credit cards, medical bills, and personal loans. Federal student loans, tax debts, and child support follow different rules and can take more. The IRS, for example, doesn't need a judgment and can garnish based on your dependents and filing status.

Option 1: File a claim of exemption

Once garnishment starts, you have 10 days to file a Claim of Exemption (Form WG-006). This is your legal argument that the garnishment causes undue hardship. Under Cal. Civ. Proc. Code § 706.051, judges have discretion to reduce or eliminate garnishments if you prove the money is necessary to support yourself or your family.

To file, complete Form WG-006 and submit it to the court that issued the garnishment order. You'll also file a Financial Statement (Form WG-007) showing your income, expenses, and dependents. The creditor has 10 days to oppose your claim. If they do, you'll attend a court hearing.

Judges typically grant exemptions if you can show:

• Your income barely covers rent and food
• You support children or elderly parents
• Medical expenses consume most of your budget
• The garnishment would force you into homelessness

Courts are more lenient if your income is close to the federal poverty line. In 2025, that's $1,215 per month for one person or $2,072 for a family of three.

Once you file the claim, garnishment pauses until the hearing. If the judge sides with you, the garnishment stops or shrinks. If not, it continues as ordered.

Option 2: Negotiate a settlement before judgment

If a creditor sues you but hasn't won yet, you have leverage. They'd rather get 40% of the debt now than wait months for a judgment and then fight you over garnishment exemptions.

Most creditors settle for 30-60% of the balance if you can pay a lump sum. Some accept payment plans, though those typically require closer to 70-80% of what you owe.

Start by responding to the lawsuit. If you ignore it, the creditor wins by default and gets a judgment. Once they have that, your negotiating power drops. File an answer to the complaint within 30 days, then reach out to their attorney to discuss settlement.

Your opening offer should be low: 25-30% if you have cash, or a 12-month payment plan at 50% if you don't. Expect them to counter higher. The sweet spot for most settlements is 40-50% paid within 60 days.

Get the agreement in writing. The document should state the exact amount, payment deadline, and that the creditor will dismiss the lawsuit with prejudice (meaning they can't sue you again for the same debt).

Option 3: File for bankruptcy

Bankruptcy stops wage garnishment immediately through an automatic stay. The moment you file, creditors must halt all collection efforts, including garnishment, lawsuits, and phone calls.

Chapter 7 wipes out credit card debt, medical bills, and personal loans in about four months. You'll lose non-exempt assets, but California's exemptions are generous. Most filers keep their home, car, and personal belongings.

Chapter 13 stops garnishment and restructures your debts into a 3-5 year repayment plan. You pay what you can afford, and the rest is discharged at the end. This works well if you're behind on a mortgage or car loan and need time to catch up.

Bankruptcy won't erase child support, recent taxes, or most student loans. But for unsecured debt, it's the fastest way to stop garnishment and get a clean slate.

Filing costs $338 for Chapter 7 or $313 for Chapter 13, plus attorney fees if you hire one. You can file without an attorney, but most people hire help because one mistake can get your case dismissed.

Option 4: Pay the judgment in full

If you can scrape together the money, paying off the judgment ends the garnishment instantly. You'll owe the original debt plus interest, court costs, and sometimes the creditor's attorney fees. Check the judgment for the exact amount.

Once paid, the creditor must file an Acknowledgment of Satisfaction of Judgment (Form EJ-100) with the court. This removes the judgment from your record and stops the garnishment. If they drag their feet, you can file the form yourself and serve them a copy.

Paying in full is rare because most people don't have thousands of dollars sitting around. But if you can borrow from family, tap a 401(k), or sell something, it's the cleanest exit.

Option 5: Wait out the statute of limitations on collection

Judgments in California last 10 years and can be renewed for another 10. If the creditor doesn't renew, the judgment expires and they lose the right to garnish your wages.

This isn't a strategy. It's a Hail Mary. For 10 years, the creditor can garnish wages, levy bank accounts, and place liens on property. The judgment also wrecks your credit, making it nearly impossible to rent an apartment, get a car loan, or qualify for a mortgage.

Still, if you're judgment-proof (no income, no assets), waiting might be your only option. Judgment-proof means creditors can't collect because you have nothing they can legally take. That includes if your only income is Social Security, disability, or unemployment benefits, which are exempt from garnishment in California.

What happens if you ignore a wage garnishment?

Nothing good. The garnishment continues until the debt is paid in full. Your employer must comply with the court order, and if they refuse, they become liable for the debt themselves. That means they'll garnish your wages no matter how much you complain.

Ignoring garnishment won't make it go away. It will, however, drain your paycheck for months or years and make it harder to negotiate a settlement later.

The bottom line

Wage garnishment in California is aggressive but stoppable. File a claim of exemption if you're already being garnished and the hardship is real. Negotiate a settlement if the creditor hasn't won a judgment yet. If the debt is overwhelming and garnishment is just one of many problems, bankruptcy might be the reset you need. Whatever you do, act before the garnishment starts. Once it does, you're on defense.