Wage Garnishment in Texas: Is Your Paycheck Protected?
Texas law protects your wages from garnishment for most consumer debts. Only child support, unpaid taxes, and federal student loans can lead to wage garnishment. However, creditors with court judgments can still freeze and drain your bank account, so you need to understand all your protection options.
Respond to CollectorsTexas law shields your wages from garnishment for most consumer debts. Credit card companies and medical bill collectors cannot touch your paycheck. Only specific debt types can lead to wage garnishment in Texas.
However, creditors with court judgments can still drain your bank account. You need to understand your rights and protection options.
Facing a Debt Collection Lawsuit or Bank Garnishment?
You need to respond quickly to protect your rights. Our partner Solo helps you answer debt lawsuits, negotiate settlements, and stop aggressive creditor actions before they drain your bank account.
Get Help NowCan Creditors Garnish Your Wages in Texas?
No. Texas is one of four states that bans wage garnishment for consumer debts.
Your wages can only be garnished for three debt types in Texas:
- Court-ordered child support and spousal maintenance
- Unpaid federal or state taxes
- Defaulted federal student loans
Credit card companies, medical providers, and other creditors cannot garnish your paycheck. Texas Constitution Article 16, Section 28 explicitly prohibits wage garnishment for consumer debt.
What Is Wage Garnishment?
Wage garnishment allows creditors to collect debt directly from your paycheck. Most states permit this collection method after creditors obtain a court judgment.
Texas law provides stronger protection than most states. The Texas Constitution states that current wages for personal service cannot be garnished. The only exceptions are court-ordered child support and spousal maintenance.
In other states, creditors can take a portion of each paycheck. They must first win a lawsuit and obtain a money judgment. Then they can request a garnishment order from the court.
Texas residents enjoy protection that residents of 46 other states do not have.
Who Can Garnish My Wages in Texas?
Only three entities can garnish your wages in Texas:
Child Support and Alimony
State courts can order wage garnishment for unpaid child support. Courts can also garnish wages for spousal maintenance (alimony).
All Texas child support orders include automatic income withholding. Custodial parents can request garnishment if payments fall behind.
Tax Debts
The IRS can garnish wages for unpaid federal income taxes. The Texas Comptroller can garnish wages for unpaid state taxes.
Neither federal nor state tax agencies need a court judgment first. They can issue garnishment orders directly to your employer.
Federal Student Loans
The U.S. Department of Education can garnish wages for defaulted federal student loans. Private student loan companies cannot garnish your wages in Texas.
Federal agencies follow federal wage garnishment law, not state law. They do not need to file a lawsuit before garnishing your wages.
Can My Wages Be Garnished From an Order in Another State?
Texas wage protection laws apply even when creditors have judgments from other states. Your wages remain protected from garnishment for consumer debts.
Creditors with out-of-state judgments can domesticate those judgments in Texas. Domestication means transferring the judgment to a Texas court. The Texas court then enforces the judgment under Texas law.
Texas law still prohibits wage garnishment for consumer debts. The out-of-state judgment does not change this protection.
However, creditors can use other collection methods. They can freeze your bank account or seize other non-wage property.
Wage Garnishment vs. Account Garnishment
Creditors cannot garnish your paycheck for consumer debts in Texas. But they can drain your bank account through account garnishment.
Account garnishment works differently than wage garnishment. Creditors with court judgments can request a writ of garnishment. The court issues the writ to your bank.
Your bank must freeze the funds in your account. The bank sends you a notice after freezing your account. By then, you cannot access your money.
Texas law does not limit how much creditors can take. If you owe $5,000 and have $5,000 in your account, creditors can take it all. Some funds may be protected by state and federal exemptions.
Creditors can request multiple garnishment orders. They can target different accounts even if you switch banks. Account garnishment poses a real threat to Texas residents with outstanding judgments.
If you face a judgment or account garnishment threat, our partner Solo can help you respond and negotiate a settlement.
How Much of My Paycheck Can Be Taken by Wage Garnishment?
Garnishment limits depend on the debt type. Texas residents rarely face wage garnishment for consumer debts. But child support, taxes, and student loans follow specific rules.
Child Support Garnishment Limits
State law caps child support garnishment amounts. The limits depend on whether you support other dependents:
- Up to 50% of disposable earnings if you support another spouse or child
- Up to 60% of disposable earnings if you do not support others
- An additional 5% if payments are more than 12 weeks overdue
Disposable income means your total earnings minus legally required deductions. Required deductions include federal taxes, state taxes, and Social Security.
Student Loan Garnishment Limits
The Department of Education can garnish up to 15% of your disposable income. The calculation uses the federal minimum wage as a baseline.
The maximum garnishment is the lesser of two amounts:
- 15% of your disposable income
- The amount your disposable income exceeds 30 times the federal minimum wage
Example: Your weekly disposable income is $400. The federal minimum wage is $7.25.
- 15% of $400 equals $60
- 30 times $7.25 equals $217.50
- $400 minus $217.50 equals $182.50
The garnishment would be $60 because that is the smaller amount.
Tax Debt Garnishment Limits
The IRS can garnish an unlimited portion of your wages. No federal law caps IRS wage garnishment.
The IRS determines the garnishment amount based on your filing status and dependents. Your standard deduction also affects the calculation.
The IRS does not need a court order to garnish your wages. You receive a series of notices before garnishment begins.
How to Deal With Overwhelming Debt in Texas
You have options when debt becomes unmanageable. Bankruptcy provides relief from consumer debts like credit cards and medical bills.
Filing bankruptcy triggers an automatic stay. The stay stops most collection efforts immediately. Creditors cannot call you, sue you, or drain your bank account.
Texas offers generous bankruptcy exemptions. These exemptions protect your property during bankruptcy. You can often keep your home, car, and personal belongings.
Chapter 7 Bankruptcy
Chapter 7 wipes out most unsecured debts within three to four months. Unsecured debts include credit cards, medical bills, and personal loans.
You must pass the means test to qualify for Chapter 7. The means test compares your income to the Texas median income.
Chapter 7 does not eliminate all debts. Child support, most tax debts, and student loans survive Chapter 7. These are called non-dischargeable debts.
Chapter 13 Bankruptcy
Chapter 13 restructures your debts into a payment plan. You make monthly payments for three to five years.
Chapter 13 works well for priority debts like taxes and child support. You can catch up on these debts through your payment plan.
Chapter 13 also stops wage garnishment for child support and taxes. The garnishment pauses while you make plan payments.
You should speak with a debt resolution specialist to determine which bankruptcy chapter fits your situation.
Are There Any Resources for People Facing Wage Garnishment in Texas?
Texas offers several free legal aid organizations. These groups help people facing debt collection and garnishment.
Free Legal Resources
- Texas State Law Library provides debt collection guides and legal forms
- Texas Law Help offers articles and videos about garnishment
- Texas Judicial Branch publishes court forms and instructions
- State Bar of Texas connects you with low-cost attorneys
You can also contact local legal aid societies. These nonprofits provide free representation to qualifying individuals.
If creditors are threatening collection action or you have received a court summons, our partner Solo can help you respond properly and protect your rights.