Wage garnishment is a court-ordered process that takes part of your paycheck to pay a debt. In Missouri, a creditor generally can’t touch your wages until it has sued, won a judgment, and obtained a garnishment order, and even then the law limits how much of your pay can be taken. If a garnishment is already hitting your paycheck, bankruptcy can stop it quickly.
At Debt Doctors of Missouri, we help Springfield area families who are dealing with garnishments and want to understand their options. Call (417) 466-3328 to speak with our team.
What Is Wage Garnishment?
A garnishment is a legal tool a creditor uses to collect a debt after getting a judgment against you. Unlike a payment plan you agree to, it’s ordered by a court and carried out through your employer, who is required to withhold the money and send it on.
Wage Garnishment Takes Money From Your Paycheck to Pay a Debt
When a garnishment is in place, your employer takes a portion of your earnings from each paycheck and sends it to the creditor, or to the court, until the debt is paid or the garnishment ends. You don’t get a choice about whether the deduction is made, though you do have rights and protections under the law.
Which Debts Can Lead to Wage Garnishment?
Most garnishments start with a lawsuit over an unpaid consumer debt. Common examples include:
- Credit card debt
- Medical bills
- Personal loans and payday loans
- Auto loan deficiencies after a repossession
- Past-due rent or other judgments
Some debts are subject to different garnishment rules. Child support, unpaid taxes, and defaulted federal student loans can be collected through garnishment without the same court process, and they have their own limits.
How Does the Wage Garnishment Process Work in Missouri?
For most consumer debts, the creditor has to file a lawsuit, serve you, and win a judgment before it can garnish your wages. If you’re served with a lawsuit, don’t ignore it. If you don’t respond, the creditor can get a default judgment, which can lead to a garnishment. After a judgment, the creditor can ask the court to issue a writ of garnishment directed at your employer.
Once your employer is served with the writ, it’s legally required to start withholding wages as directed. Employers must comply with a valid garnishment order, and federal law prohibits them from firing an employee for a garnishment relating to one debt. Your paycheck will show the deduction, and the money goes toward the judgment until it’s satisfied or the garnishment is stopped.
How Much of Your Wages Can Be Garnished in Missouri?
Garnishment is calculated on your disposable earnings, which is your pay after legally required deductions such as taxes. Under federal law, the maximum that can generally be taken for an ordinary consumer debt is the lesser of two figures:
- 25% of your disposable earnings for the week, or
- the amount by which your weekly disposable earnings exceed 30 times the federal minimum wage
Because the rule says “whichever is less,” lower income workers can have much less than 25% taken, or nothing at all. Check the current federal minimum wage when you calculate, since the second figure depends on it.
Missouri’s Head-of-Family Protection
Missouri law adds a stronger protection for certain workers. Under Missouri Revised Statutes § 525.030, a head of a family generally can’t have more than 10% of their earnings garnished for ordinary debts, and the protection is available to someone who provides more than half of the support for a child or other dependent.
To claim it, you generally have to take action. Don’t assume your employer will apply it automatically, and make sure the court and your employer have the information they need. This protection can significantly reduce how much comes out of your check, but the exact requirements should be reviewed with an attorney.
Why Child Support and Tax Debts Follow Different Rules
The limits above apply to ordinary consumer debts. Child support garnishments can take a much larger share of your pay, commonly up to 50% to 65% depending on the person’s circumstances and any support arrears. Federal tax levies and defaulted student loans are collected under their own rules and procedures. If one of these is the source of your garnishment, the analysis is different, and bankruptcy may not work the same way.
What Can You Do After Receiving a Garnishment Notice?
Act promptly. Garnishment notices have deadlines, and some options disappear if you let them pass.
Review the Notice, Court Documents, and Paycheck Deductions
Start by reading the notice and any court papers carefully. Look at the case number, the creditor’s name, the amount claimed, and any deadlines. Then compare the amount coming out of your paycheck against the legal limits. Errors can occur, including garnishments that take too much or that continue after a debt has been paid.
Ask About Exemptions, Errors, and Options for Addressing the Debt
You may have options, including:
- Claiming the head-of-family protection if it applies.
- Challenging the garnishment if the amount is wrong or the debt isn’t yours.
- Negotiating a payment arrangement with the creditor.
- Ask an attorney whether the judgment or garnishment can be challenged.
- Consider bankruptcy if the debts are more than you can manage.
An attorney can look at the judgment and your paystubs and tell you which options are realistic.
Can Bankruptcy Stop Wage Garnishment in Missouri?
In many cases, yes. When you file a Chapter 7 or Chapter 13 bankruptcy case, federal law places an automatic stay on most collection actions. The stay generally takes effect when the case is filed and can stop wage garnishment, lawsuits, and collection calls, although exceptions apply.
Your employer must receive notice of the bankruptcy filing before it can stop withholding wages. After filing, notice is sent to creditors, and your attorney can also provide notice to the creditor and employer to help stop the garnishment as soon as possible. Money withheld before the filing may be treated differently from money withheld afterward.
Exceptions and Limits to the Automatic Stay
The automatic stay does not stop every type of collection action. It generally doesn’t stop child support or alimony collection. The stay can also be limited or lifted in certain situations, including repeat bankruptcy filings. Whether it will cover your garnishment depends on the type of debt and your history, so get advice before you file.
How Chapter 7 and Chapter 13 Address the Debt Behind Garnishment
The automatic stay stops collection while the case is pending, but it doesn’t erase a debt by itself. A debt is eliminated only if and when it’s discharged at the end of the case, and some debts, such as most child support, many tax debts, and certain student loans, aren’t dischargeable. Knowing the difference helps you set realistic expectations about what bankruptcy will do for your particular situation. You can read about the costs involved on our bankruptcy costs page.
Chapter 7 May Eliminate Qualifying Unsecured Debt
Chapter 7 bankruptcy can wipe out qualifying unsecured debts such as credit cards and medical bills, which are the debts behind many garnishments. When a debt is discharged, the creditor can’t resume collection on it. Eligibility depends on your income and circumstances, and Missouri’s exemptions protect certain property.
Chapter 13 Uses a Court-Approved Repayment Plan
Chapter 13 bankruptcy takes a different approach. It sets up a court-approved repayment plan, generally lasting three to five years, in which may allow an eligible person to keep property and catch up on arrears, but the plan must be confirmed and property treatment depends on the case. The garnishment stops while the plan is in place, and the plan can be used to catch up on past-due mortgage or car payments.
Get Help With Wage Garnishment Close to Home
When a creditor takes part of your paycheck before you receive it, covering rent, groceries, and other necessities can become difficult.
Debt Doctors of Missouri focuses exclusively on bankruptcy and debt relief law. Our team is led by bankruptcy attorney Ted L. Tinsman, who has more than 25 years of experience and has represented consumer debtors in more than 3,000 cases. We treat every client with respect, compassion, and without judgment.
As a local resource for families in Springfield and throughout Missouri, we can review your garnishment, explain whether bankruptcy may help, and tell you honestly if it is not the right fit. Your free initial consultation is an opportunity to ask questions and get clear answers without pressure. Contact Debt Doctors of Missouri at (417) 466-3328 today to learn how we may be able to help you address a wage garnishment.
