An Introductory Guide to Wage Garnishment Laws in Texas

April 19, 2018
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When a debtor is unable to pay the amount they owe, a court may order their employer to withhold a part of their wage and send it directly to the creditor until the debt is paid. When it comes to wage garnishment laws, the laws in Texas are different from most of the other states in the US. Texas imposes certain limitations on the creditors seeking debtor’s wage to settle their unpaid debts. In addition, there is a limit on the amount that can be withheld from a defaulting debtor’s wage. This post gives you an overview of wage garnishment laws in Texas.

Creditor’s Rights

Unlike most of the states in the US that allow all creditors to garnish their debtors’ wage, Texas awards the right to only a certain type of creditors. A creditor can garnish wages in Texas for unpaid income tax to the government, court-ordered child support and alimony, or unpaid/defaulted student loans. In such scenarios, a creditor can garnish the debtor’s wages even without a court order.

Termination of Employment

Though Federal law prohibits employers to terminate an employee based on a single garnishment, the law is not applicable for one- or two- garnishments for the same year. However, in the state of Texas, the Wage Garnishment Law is different. Employers in Texas cannot terminate, demote, or reprimand an employee, no matter the number of garnishment.

Garnishment Limitations

Federal law places a limit on the amount a creditor can garnish from a debtor’s paycheck, which varies depending upon the nature of debt and other dynamics. If a debtor has an unpaid federal student loan, the Department of Education can garnish 15 percent of their disposable income. In case of unpaid taxes, the government decides the wage garnishment depending upon the number of dependents the debtor has and the current deduction rate. The maximum wage garnishment allowed on a paycheck in a year is 50 percent of the disposable income.

The Bottom Line

If you are facing wage garnishment, consult a lawyer who can help you with the paperwork and resolve the issue. The attorneys at the Law Offices of Nick Nemeth, can help you release your wage garnishment or resolve any of your tax disputes with the IRS. To learn more about wage garnishment or other tax-related laws in Texas, speak with one of our tax lawyers at (972) 426-2553. Alternatively, fill out our contact form to schedule a no-obligation free consultation.

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Creditor’s Rights

Termination of Employment

Garnishment Limitations

The Bottom Line

What Our Clients Have to Say

Proud to have received
“IRS Tax Lawyer of The Year, USA"
at FM Taxation Awards 2024

Dallas Office Address

Phone

Email

Creditor’s Rights

Termination of Employment

Garnishment Limitations

The Bottom Line

What Our Clients Have to Say

Proud to have received “IRS Tax Lawyer of The Year, USA" at FM Taxation Awards 2024

Proud to have received
“IRS Tax Lawyer of The Year, USA"
at FM Taxation Awards 2024