• A wage garnishment is the process by which a creditor can demand that your employer withhold a portion of your earnings every pay period to satisfy a debt. Title III of the Consumer Credit Protection Act places strict limitations on the amount that may be garnished from your pay.


    Creditors are limited to garnishing only 25 percent of your disposable income. Your disposable income is any amount you earn each week that is more than 30 times the minimum wage.

    Time Frame

    Your wages can be garnished for as long as necessary until you have repaid the debt.


    If your wages are being garnished due to a defaulted federal student loan, only 15 percent of your disposable income can be withheld.


    Some states only allow the federal government to garnish an individual's wages. In this case, a private creditor, such as a collection agency, could not initiate a wage garnishment against you.


    A creditor that has legal permission to garnish your wages may also be entitled to seize your bank accounts.


    U.S. Department of Labor: Title III - Consumer Credit Protection Act

    Federal Student Aid: Administrative Wage Garnishment

    More Information: How to Stop a Wage Garnishment

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