The state of Texas, along with a few other states, may not allow creditors
to garnish wages to satisfy debts, except for special circumstances such
as spousal/child support, student loans and federal taxes. A wage garnishment
is when a creditor receives permission from the court to withhold payment
from paycheck earnings and have them forwarded to the creditor instead.
Yet, if garnishment of your wages has yet to start, or you think creditors
may seek another way to seize assets, you may want to consider how bankruptcy can help.
States that allow wage garnishment have limitations to follow under federal
law. This means creditors should not be garnishing more than a certain
amount they are allowed. Again, if you default on a student loan or owe
back taxes, wage garnishment is a possibility when you fail to act on
a lawsuit or summons received. Garnishments can consume a considerable
amount of your income depending on the reason for it. Up to 50 percent
of disposable income in Texas, for example, may be garnished for child
There are points to consider with wage garnishment that debtors may not
be aware of. If your employer is located in another state that allows
garnishments, creditors may have a right to enforce a garnishment. Your
bank account may be subject to garnishment if wage garnishment is not
available. If wage garnishment is a possibility you should review your
options with a reputable bankruptcy attorney.