How to Stop Wage Garnishment Without Bankruptcy

If you're trying to stop a wage garnishment, filing for bankruptcy will be effective in most cases. But it's not your only option.

Here are five ways to prevent a creditor from garnishing your wages other than filing for bankruptcy.

1. Respond to the Creditor's Demand Letter (Make Payment to the Creditor)

Once a creditor has obtained a judgment against you, in many states, the creditor must send you a warning letter before the garnishment begins. This is usually called a “demand letter.”

If you get a demand letter from your creditor, don't ignore it. Use this opportunity to pay the creditor in full, work out a reduced lump-sum payment, or negotiate a payment plan with the creditor before it begins the garnishment process. Many creditors prefer to get voluntary payments from debtors rather than deal with the cost and time-consuming paperwork involved with garnishments.

2. Object to the Garnishment With the Court

If you do nothing after receiving the demand letter, your employer will likely send you copies of the garnishment order and notice of the garnishment. You should file any objections to the garnishment in writing with the court and request a hearing. The garnishment papers might contain forms you can fill in and request a hearing. If not, you'll have to complete and file something separately.

Some of the more common objections you can make include:

• The creditor is deducting too much. Under federal law, your creditor can only garnish the lower of 25% of your disposable earnings (gross pay less taxes and mandatory deductions) or your disposable earnings less than 30 times the federal minimum wage. Some states set a lower amount. If you're being garnished for child support or alimony, up to 50% or 60% of your disposable earnings are subject to garnishment. (An additional 5% may be taken if you are more than 12 weeks in arrears.) Garnishments for student loan debts and IRS taxes are also subject to a different computation.
• The creditor didn't follow proper procedures. The court may terminate the garnishment order if the creditor didn't follow the proper garnishment procedure. An example of improper garnishment would be if the creditor failed to give you timely notice of the garnishment.
• You paid the creditor. If you already paid the judgment, or if the creditor received full or partial payment toward the judgment through other means, like bank attachments and prior post-judgment voluntary payments, you must object to prevent the creditor from receiving more than legally entitled.

3. Seek State-Specific Remedies

Some states offer additional protections against garnishment. For instance, in Ohio, you can request that the court appoint a trustee. In a trusteeship, you make payments to the trustee, who will then distribute those payments to your other creditors. (Ohio Rev. Code § 2329.70 (2024).) A creditor can't garnish your wages when you're in a trusteeship.

In California, you can claim an economic hardship exemption. Under California law, "the portion of the judgment debtor's earnings which the judgment debtor proves is necessary for the support of the judgment debtor or the judgment debtor's family supported in whole or in part by the judgment debtor is exempt from levy under this chapter." (Cal. Civ. Proc. Code § 706.051 (2024).) So, you can reduce or eliminate the garnishment if you can show financial hardship and that your income is needed to support your family.

To learn about the options available in your state, contact the clerk of your municipal or county court or consult with a local attorney.

4. Challenge the Underlying Judgment

If you have a legal basis to dispute the judgment, for instance, you were never properly served with the complaint and subsequent legal papers, it might not be too late to stop the garnishment. Because you won't be able to dispute the judgment at the garnishment hearing, raising your defenses or objections will fall on deaf ears.

However, you might be able to vacate the judgment by filing a separate motion, posting a bond, and attending a different hearing. This process can be very difficult, so consider consulting a local attorney to discuss this further. You must also do it quickly, as the time to pursue this remedy will be limited.

5. Get Debt Counseling

A consumer credit counseling service (CCS) might be able to help you stop a garnishment. Not to be confused with debt repair companies, a CCS is a nonprofit agency that can help you negotiate and agree with your creditors to pay them over time. If your creditors agree to participate in this group payment plan, they can't garnish you as long as you make your payments.

When to Consider Bankruptcy to Stop a Wage Garnishment

If none of the above options are sufficient, consider using bankruptcy if the debt qualifies for a "discharge" or elimination in Chapter 7 or 13.

Getting Help to Stop a Wage Garnishment

You can get more information on garnishment at the U.S. Department of Labor's website. For information specific to your situation or to get help objecting to a garnishment, contact a local debt relief attorney.