Debt collectors can access your wages by way of garnishes. Most states allow for the garnishing of a person’s wages once they fail to pay their debts. While garnishment is a norm in most states, Texas is an exception. Under the Texas Laws, an individual’s wages are only garnished for precise reasons.
This post seeks to show how Texas handles wage garnishment.
What is Wage Garnishment?
This is a court order sent to borrowers’ employers when they fail to repay their debt. Such orders require the employer to withhold a specified amount of money from the employee’s paycheck, after which the employer sends the withheld amount to the creditor.
Texas wage garnishment laws are different. As mentioned earlier, they are allowed for child support, student loans, taxes, and alimony. It is presumed that after garnishment, one has to afford a living. In light of this presumption, the federal law sets a limit on the amount that can be withheld from a person’s paycheck.
Can one lose their job over a wage Garnishment?
The question of job security in the event of wage garnishment is worthy of some answers. The Consumer Protection Act is a federal law that disempowers an employer to fire their employees over wage garnishments. However, it allows an employee to have only one garnishment.
If the employee has over one wage garnishment being taken out of their paycheck, the employer can fire them.
What percentage of one’s income qualifies for wage garnishment in Texas?
You need to note that an employer is prohibited from reprimanding, demoting, terminating, or declining to hire for wage garnishment reasons in Texas. As it is, the maximum amount that qualifies for garnishment is 50 percent of the disposable income.
In Texas, taxable income is defined to mean the amount that remains in one’s account after the deduction for a legally mandated item like workers compensation, medical and disability insurance plans for you and your family, workers compensation, retirement plans covers, etc.
Here is how disposable income comes to play
Child support and alimony.
In the above context, your wages can be garnished up-to 50 percent of your disposable income for court-ordered and unpaid child support. While most people think that they can get away with unpaid alimonies, they must understand the effects of such thinking. Once maintenance is past due, garnishment is the next viable solution to your ex-spouse.
Student loans that are in default.
The threshold is not so high when it comes to student loans that are in default. Here the maximum wage garnishment amount is 15 percent of your disposable income. Another most viable option is to have your wages garnished for not more than thirty times the federal minimum wage. However, between the two options, whichever is fewer wins.
Government debt for unpaid taxes, fines, and penalties
This portion of insight is meant to deter you from being at loggerheads with the law because you will receive no mercy once you fail to pay taxes, fines, and penalties. However, the amount that can be garnished depends on the number of dependents you have and the deduction rate.
Wage garnishment judgments from another state.
It might seem convenient to quickly rush back to your state after failing to pay all your debts. While it may seem like a walk in the pack, it is vital to note that out-of-state creditors can enforce wage garnishment judgments from other states.
How can one stop wage garnishments?
Like any other problem, wage garnishments can be brought to an end. It is common knowledge that shameful as it may be, declaring yourself bankrupt is the best way to deal with huge debts.
While bankruptcy limits one from starting a business, running for office, and any other significant and meaningful stride in life, it could come in handy in escaping the harsh deductions that come with Texas wage garnishments.
The best thing about opting for bankruptcy is that wage garnishment stops immediately after filing for bankruptcy. Things get better because you can recover the amount deducted up to 90 days before filing for bankruptcy.
However, it is essential to note that chapter 13 Bankruptcy, does not exempt one from meeting their obligations of paying for child support and alimony. The only thing it provides is a repayment plan that enables you to catch up on delinquency and, above all, regain control of your finances without the consistent nagging from your creditors.
To sum it up
Texas wage garnishment procedures are lenient on debtors. As it has been demonstrated above the Texas laws seek to make it extremely easy for debtors to clear their debts and still meet their needs. Chapter 13 Bankruptcy explains it all.