Wage Garnishment
A legal process allowing a creditor to collect a debt by taking a portion of your paycheck directly from your employer, after obtaining a court judgment. Federal law limits how much can be garnished (generally 25% of disposable income or the amount above 30 times the federal minimum wage, whichever is less).
Related guides
- Full credit & FICO® glossary
Browse all defined terms by category.
- Judgment
A court ruling that legally confirms you owe a debt to a creditor. Judgments can appear on your credit report and allow creditors to pursue wage garnishment or bank levies to collect. Civil judgments were largely removed from credit reports in 2017–2018 by the three major bureaus, but some state records may still appear.
- Default
Failure to repay a debt according to the terms of the loan agreement. Default triggers consequences depending on the loan type — collections activity, repossession, foreclosure, or wage garnishment. Defaulting on any loan severely damages your credit score.
Frequently Asked Questions About Wage Garnishment
What does Wage Garnishment mean?
A legal process allowing a creditor to collect a debt by taking a portion of your paycheck directly from your employer, after obtaining a court judgment. Federal law limits how much can be garnished (generally 25% of disposable income or the amount above 30 times the federal minimum wage, whichever is less).
Is Wage Garnishment important for my FICO® score?
Understanding Wage Garnishment helps you manage your credit profile more effectively, which in turn supports a stronger FICO® score.