If a creditor secures a civil judgment, they may seek a court order to garnish wages. Federal and state laws strictly limit allowable garnishment amounts and provide statutory exemptions.
1. Federal Wage Garnishment Limits (CCPA Title III)
⚖️ Federal Disposable Earnings Formula
Garnishments cannot exceed the lesser of: (1) 25% of disposable weekly earnings, OR (2) The amount by which disposable weekly earnings exceed 30 times the federal minimum wage ($217.50/week).
| State Garnishment Category | Representative States | Statutory Protection Level |
|---|---|---|
| Full Garnishment Ban for Unsecured Debt | TX, PA, NC, SC | Commercial creditors cannot garnish wages for ordinary consumer debts. |
| Strict State Caps (< 15%) | CA (20%), NY (10%), IL (15%), FL (Head of Family Exempt) | Enforces lower garnishment ceilings than federal baseline. |
| Standard Federal Baseline (25%) | TX excluded states (OH, GA, MI, AZ, NV) | Follows standard 25% CCPA disposable earnings formula. |