Wage Garnishment in California: Know Your Rights and Protections

Wage garnishment is a legal process. Creditors can take money directly from your paycheck to repay certain debts. In California, most garnishments for consumer debt require a court judgment. The state provides stronger wage protections than federal law. Once a creditor wins a lawsuit, they can serve paperwork to your employer. Garnishment begins soon after. You have the right to object or claim exemptions within 10 days. There are strict limits on how much of your paycheck can be taken. Filing bankruptcy is one way to stop garnishment and eliminate the debt completely.

Who Can Garnish My Wages in California?

If you work in California, creditors can garnish your wages. Debt collectors and debt buyers can too. They do this for past-due debt. Common debts include credit card debt, back rent, car loans, medical bills, and payday loans.

These creditors must get a court order judgment to collect consumer debt.

If you get sued for a debt, you can respond. You can try to stop garnishment before it begins. If you’re worried about responding on your own but can’t afford an attorney, our partner Solo can help. They’ve helped over 300,000 people respond to debt lawsuits.

Some Debts Don’t Require a Court Order

Your wages can be garnished for certain debts without a court order. These include past-due alimony, child support payments, IRS debt, and federal student loan debt.

These debts go through an administrative process. They don’t require a court judgment. The rest of this article focuses on consumer debts that do require a court judgment.

California Wage Garnishment Process

Here’s an overview of California’s wage garnishment process:

• Step 1: The creditor sues you to win a judgment.
• Step 2: The creditor serves paperwork to your employer.
• Step 3: You get served and garnishment begins.

You can object to the garnishment or file a claim of exemption. You typically need to do so within 10 days of receiving the notice.

Step 1: Debt Lawsuit

Before a creditor can take money from your paycheck, they must sue you. They need to win the case in court. The process starts when the creditor files a lawsuit. If the court decides in their favor, it issues a judgment.

A judgment is a legal document. It confirms how much you owe. The amount includes the original debt plus interest, fees, or court costs.

Once the judgment is in place, the creditor can begin wage garnishment. Garnishment doesn’t happen automatically. It’s a separate step that comes after the judgment.

During this process, the creditor is called the judgment creditor. You’re referred to as the judgment debtor. Your employer is known as the garnishee. They’re responsible for sending part of your paycheck to the creditor. A local official carries out the process. This person is the levying officer.

Step 2: Your Employer Gets the Court Order

Once a creditor has a judgment, they can request a writ of execution. This is an official court order. It allows wage garnishment to begin. It tells your employer to withhold part of your paycheck.

The court issues the writ. A levying officer delivers it to your employer.

The writ is usually valid for 180 days. Garnishment can begin anytime during that period.

The court includes other paperwork with the writ. This may include:

• An earnings withholding order
• A financial statement and claim of exemption form
• Instructions for employees

Together, these documents are called the garnishment packet.

Your employer has 15 days to respond. They must fill out and return the employer’s response form. If they don’t respond, they might become responsible for part of the debt. Most employers respond quickly.

Step 3: Garnishment Begins

Your employer must give you a copy of the garnishment papers. They have 10 days from receiving them to do this. Wage garnishment usually starts on the first payday. It must come at least 10 days after your employer was served.

A memorandum of costs after judgment may be included. It shows extra fees the creditor is adding. These can include more interest or collection costs.

You have 10 days to object to these added costs. File an objection if you believe they’re not accurate or fair.

How To File Objections and Exemptions

You have the right to file an objection. You can also claim an exemption to stop or reduce wage garnishment.

In most cases, you need to act within 10 days. That’s 10 days from getting the garnishment papers from your employer. You can still ask for an exemption after garnishment starts. It may take more time to resolve.

Common Reasons for Objection

People object for several reasons:

• They qualify for an exemption.
• They don’t owe the debt.
• They weren’t properly served.
• The debt was already discharged in bankruptcy.

Claim of Exemption

In California, you may claim an exemption. You need the money for basic living expenses. Or you need it to support other people in your household.

Follow the employee instructions in the garnishment packet. Fill out the claim of exemption form and financial statement. Submit those to the sheriff’s office. Keep the original and file a copy. The instructions tell you where to send everything.

If you have questions, call the sheriff’s office or court clerk. They can give you information about the process. They can’t give legal advice.

What Happens at the Court Hearing?

If you file an objection or claim an exemption, the court holds a hearing. The creditor has 10 days to respond. They can challenge your objection or exemption.

At the hearing, the judge decides whether your wages should:

• Be garnished for the full amount the creditor requested
• Be garnished for a smaller amount based on your exemptions or financial hardship
• Not be garnished at all

Show up to the hearing. If you don’t, the court will likely approve the garnishment by default. It will be harder to change the decision later.

If the court agrees with your objection or claim, garnishment stops. Any money already taken might be returned to you. If the court sides with the creditor, garnishment continues. It continues until the full amount of the debt is paid.

What Are the California Wage Garnishment Limits?

Your pay can’t be garnished for more than you owe. The amount includes fees, costs, and interest. There are limits to how much of your paycheck a creditor can take.

The formula starts with your disposable wages. That’s your wages after legally mandated deductions. Deductions include taxes, Social Security, Medicare, and state unemployment insurance tax.

Your wages can only be garnished for whichever is less:

• 25% of your disposable earnings for a week, or
• 50% of the amount that your weekly earnings exceed 40 times the state or local minimum wage.

If your weekly earnings are less than $660 (40 x $16.50 state minimum wage), your wages can’t be garnished at all.

For example, say your disposable income is $700 per week.

• 25% of $700 is $175.
• 40 times $16.50 (the state minimum wage) is $660. $700 minus $660 is $40. 50% of $40 is $20.

Since $20 is less than $175, $20 is the maximum amount a creditor can garnish weekly.

Private student loans must follow the California wage garnishment process. Federal debts including federal student loans and back taxes follow different formulas.

Can You Stop a Wage Garnishment in California?

Yes. You have several options to stop wage garnishment in California:

• You can negotiate your debt payments with the creditor. You can do this even while your wages are being garnished.
• You can pay your debt in full. Payment stops the garnishment. But this isn’t realistic for most people.
• You can file bankruptcy to stop garnishment quickly. Bankruptcy wipes out the underlying debt.

How Bankruptcy Can Help With Wage Garnishment

Filing Chapter 7 bankruptcy is a powerful way to stop wage garnishment. It stops other collections too. Bankruptcy goes further and wipes out the underlying debt. It eliminates debts from credit cards, medical bills, personal loans, and other eligible debts.

Wage garnishment stops as soon as you file bankruptcy. The court issues an automatic stay. This legal protection stops debt collection.

If your case is successful, most of your debts will be completely discharged. Wage garnishment will permanently stop. You won’t owe the debt. Debt collectors can’t go after you for the money.

Want to learn if you qualify for Chapter 7? You can speak with a bankruptcy attorney for free to explore your options.

Are There Any Resources for People Facing Wage Garnishment in California?

California has several resources to help you with wage garnishment. Here are organizations to start with:

• Los Angeles Legal Aid Foundation: Self-help information and resources for Californians dealing with wage garnishment.
• Free California Law Help: Resources, advice, and contact information for California legal clinics from the Legal Aid Association of California.
• San Joaquin County Self-Help Legal Clinic: A legal aid clinic serving Stockton and the surrounding community.
• California Courts: Wage garnishment information from the Judicial Branch of California.