Who can take your paycheck in Texas, who can't, and how to stop it
Texas is one of the few states that does not allow wage garnishment for ordinary consumer debt. A credit card company, a medical provider, a payday lender or a debt buyer cannot take money out of your paycheck, even with a court judgment (Tex. Const. art. XVI, §28).
If your paycheck is being garnished in Texas, it is almost always for one of four things: child support or spousal maintenance, the IRS, federal student loans, or another debt owed to the federal government. Each one has its own rules and its own way out, below.
The IRS does not need a court judgment. After a series of notices, the last of which is a final notice of intent to levy, it can send a levy to your employer. The levy is continuous: it keeps taking part of every paycheck until the debt is paid or the levy is released. The amount you keep depends on your filing status and number of dependents.
The levy can usually be released once you are in a resolution the IRS accepts: an installment agreement, "currently not collectible" status if you cannot pay your basic living expenses, or an offer in compromise. Bankruptcy can also stop it, and some older income taxes can be discharged.
More detail: IRS levies and wage garnishment in Texas and how to stop an IRS wage garnishment without filing bankruptcy. Our IRS tax debt practice handles these every week.
The Department of Education and its collection agencies can garnish up to 15% of your disposable pay through "administrative wage garnishment," without suing you first. You are entitled to written notice and a chance to request a hearing; asking in time can stop the garnishment from starting while the hearing is pending.
Rehabilitation, consolidation, and income-driven repayment can end a garnishment. Private student loans are different: a private lender is treated like any other consumer creditor in Texas and cannot garnish your wages. See student loans and Chapter 7 in Texas.
This is where most Texans actually get hurt. A credit card company or debt buyer that wins a lawsuit cannot touch your paycheck, but it can ask the court for a writ of garnishment against your bank account. The bank freezes the account, often without warning, and the money can be paid to the creditor.
Some money in the account is still protected. Federal benefits such as Social Security and VA benefits that are directly deposited are protected by federal rules, generally for up to two months of deposits. Other exemptions may apply depending on where the money came from, and they usually have to be claimed quickly after the freeze.
The best time to deal with this is before the judgment. If you have been sued, file an answer before your deadline; it is the single most important step. See our creditor defense page, and if a judgment already exists, your options after a judgment in Texas.
Usually, yes. Filing a bankruptcy case creates the automatic stay, a court order that stops most collection the moment the case is filed, including IRS levies, student loan garnishments, and bank garnishments by judgment creditors. Your employer or bank has to stop once it has notice of the filing.
The big exception is child support and spousal maintenance: withholding for those continues even after you file.
Whether Chapter 7 or Chapter 13 fits depends on your income, your assets, and what kind of debt is being collected. See bankruptcy and how Chapter 7 stops lawsuits and judgments.
Straight answers for Texans
No. Texas exempts current wages from garnishment for consumer debts like credit cards, medical bills and personal loans, even after a judgment. A judgment creditor can, however, garnish a bank account, so a lawsuit still needs an answer.
Mainly four kinds of creditors: child support and spousal maintenance (by court order), the IRS (by levy), federal student loans (up to 15% of disposable pay), and other federal agencies collecting debts owed to the government.
Usually. The automatic stay stops most garnishments and levies when the case is filed, including IRS levies and federal student loan garnishments. It does not stop withholding for child support or spousal maintenance.
Yes, if it has a court judgment against you. It can get a writ of garnishment that freezes the account. Directly deposited federal benefits are generally protected for up to two months of deposits, and other exemptions may apply if claimed quickly.
No. Only federal student loans can be collected by administrative wage garnishment. A private student lender is treated like any other consumer creditor in Texas and cannot garnish your wages.
Tell us who is collecting and what you received. We will tell you plainly whether they are allowed to take it and the fastest way to stop it.
Herrin Law, PLLC • 13,000+ cases filed • Dallas, Texas
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