How much of your wages can a creditor garnish? | Milwaukee, WI

BREAKING NEWS:   U.S. Department of Justice announces new rules to discharging federal student loans. Find out if you qualify TODAY!

Milwaukee 414-250-7880         Madison 608-465-4594         Green Bay 920-626-3125


Serving all of Wisconsin

Toll-free 866-906-5634  Milwaukee  414-250-7880     Madison  608-465-4594     Green Bay 920-626-3125

Our 3 Step Process

Step 1:
Get Out Of Debt

Step 2:
Clean Up Your Credit

Step 3:
Build Your Score

Home 9 Stop Collections 9 How much of your wages can a creditor garnish?

How much of your wages can a creditor garnish?

by | Oct 21, 2021 | Stop Collections

Wage garnishment is one of the most effective weapons in the debt collector’s arsenal. From the debtor’s perspective, garnishment is a devastating setback. As if having a debt problem wasn’t bad enough, now there is money missing from your paycheck. If you are facing wage garnishment in Wisconsin, there is good news and bad news. There is also hope that you can make it stop.

Limits apply

In most cases, the maximum amount of your paycheck a creditor can garnish is 20% of your disposable earnings. Disposable earnings are the amount of your paycheck that is left after legally required deductions such as taxes have already been taken out.

Exceptions to this 20% limit include missed child support payments and back taxes. If you owe these types of debts, the amount of garnishment you face may be as much as 25%.

People living in poverty are protected from garnishment

If your income places you beneath the federal poverty threshold, creditors may not garnish any of your wages. This is also the case if you rely upon means-tested government benefits such as food stamps or supplemental security income.

Payday lenders may not garnish

One type of lender that is not allowed to garnish wages in Wisconsin is payday loan providers. If you owe a payday lender money, that lender may not seek collection through garnishment but may employ other debt collection tactics.

You can make it stop

If none of these exceptions apply, a creditor can garnish your wages, provided they go through the proper process of obtaining a court judgment against you. The good news? You also have legal options at your disposal. By filing for bankruptcy, you can stop wage garnishment and other collection actions. In many situations, bankruptcy can also result in the total discharge of your debts, leaving you free to move on with your life with a clean financial slate.

the secrets about bankruptcy they don't want you to know

Complete this form to receive your FREE copy of Attorney Miller’s book, The Secrets About Bankruptcy They Don’t Want You to Know. Order today to begin your personal journey toward true financial freedom.

Sidebar (Book Request)