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Opening your paycheck to find a significant portion missing can be shocking and frustrating, especially when you’re counting on every penny to cover the essentials. It’s a real possibility, though. If you owe money on old credit card debt (or other types of debts), wage garnishment, which is what happens when a creditor legally requires your employer to withhold part of your earnings to pay a debt, is one of the tools that debt collectors can use to try and recoup what you owe.
But while wage garnishment is an option for creditors and debt collectors to use, it can cause immediate financial strain for those who are already struggling to make ends meet. So, if you’re facing wage garnishment, understanding your rights is crucial. While creditors do have the option of using this method to collect debts, you also have protections under federal and state laws. These protections limit how much can be taken from your paycheck and, in some situations, provide pathways to stop the garnishment entirely.
Taking immediate action if you’re at risk of this type of debt collection method is always your best strategy, though. So what are your options to reduce, delay or — even better — completely eliminate the garnishment? Below, we’ll detail what to know.
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How do you stop wage garnishment by a debt collector?
If you’re at risk of having your wages garnished, here are a few practical steps you can take to protect your income and regain your financial footing:
Challenge the garnishment order
One of the first steps you can take is to file an objection or “claim of exemption” with the court that issued the garnishment order. You typically have a limited window after receiving notice — often just five to 30 days, depending on your state. Your objection might be based on:
- Improper notification if you weren’t properly notified of the lawsuit before the judgment
- Identity errors if the debt isn’t actually yours
- Calculation errors if the amount being garnished exceeds legal limits
- Exempt income if your income source is protected (like Social Security benefits)
Filing an objection usually triggers a hearing where you can present your case before a judge. If successful, the garnishment may be reduced or eliminated entirely.
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Negotiate a payment plan
Many creditors would rather receive consistent, voluntary payments than go through the garnishment process. So, it can help to reach out directly to the creditor or debt collector to negotiate a reasonable payment plan. In ideal cases, a successful negotiation can both stop the garnishment and potentially reduce the total amount you’ll pay.
File for bankruptcy
While not a decision to be taken lightly, filing for bankruptcy can provide immediate relief through the “automatic stay” provision, which stops most collection actions, including wage garnishment. The two most common types of bankruptcy for individuals are:
- Chapter 7: This type of bankruptcy can eliminate many unsecured debts entirely
- Chapter 13: This type of bankruptcy restructures debts into a three- to five-year payment plan
Even if you ultimately decide against bankruptcy, the initial filing will temporarily stop the garnishment while you explore alternatives.
Prove financial hardship
In some states, you can file a claim of exemption based on financial hardship. You’ll need to demonstrate that the garnishment leaves you unable to support yourself and your dependents. Documentation might include:
- A household budget showing essential expenses
- Proof of dependents
- Medical bills or other unavoidable expenses
- Evidence of other financial obligations
If approved, the court may reduce the garnishment amount or temporarily suspend it.
What can I do if my wages are already being garnished?
There are a few avenues you can take to resolve the issue if your wages are already being garnished, including:
Verify the statute of limitations
Debts have a legal expiration date for collection actions called the statute of limitations, which varies by state (but is typically three to six years for most consumer debts). If a creditor is garnishing wages for a debt past this timeframe, you may have grounds to stop it. Review when the debt originated and consult your state’s laws. However, be aware that:
- Making a payment can reset the statute of limitations
- Court judgments often have much longer expiration periods (10-20 years in many states)
- Some debts, like federal student loans, may not have a statute of limitations
Request a debt validation
You have the right under the Fair Debt Collection Practices Act to request debt validation, even if garnishment has already begun. To do this, send a written request to the debt collector asking them to prove:
- The amount owed is accurate
- They have legal standing to collect
- Documentation of the original debt
If they cannot properly validate the debt, you may have grounds to challenge the garnishment.
Modify the existing court orders
If your financial situation has changed significantly since the garnishment began, you can petition the court to modify the existing order. Loss of employment, medical emergencies or new dependents are all valid reasons to request reconsideration. In these cases, the court may:
- Reduce the garnishment percentage
- Temporarily suspend the garnishment
- Create a more manageable payment schedule
The bottom line
Wage garnishment can often be stopped or reduced through several legal channels, but taking prompt action is important. Ignoring garnishment notices only limits your options as time passes, so start by understanding exactly what type of debt is being collected and which laws apply to your situation — and then get started on a solution. You should also remember that wage garnishment is a temporary situation, not a life sentence. You’ll need to be proactive rather than reactive, though, as each day you wait potentially means more of your hard-earned money diverted away from your household needs.