Stop Wage Garnishment

Garnishments and Bankruptcy

Overview of Wage Garnishment in Shelby County, Tennessee

Wage garnishment in Shelby County, Tennessee, is regulated by both federal and state law. These laws establish important protections and limitations for employees who are subject to debt collection through wage withholding.

Federal and State Garnishment Limits

For most consumer debts—such as credit cards, medical bills, and other court-ordered payments—the maximum amount that can be garnished from your paycheck is the lesser of two amounts:

• 25% of your disposable weekly earnings (after mandatory deductions like taxes and Social Security)
• The amount by which your weekly disposable earnings exceed 30 times the federal minimum wage (currently $217.50 per week)

Additional Protections Under Tennessee Law

Tennessee law provides further protection for families. You may exempt an additional $2.50 per week for each dependent child under 16 living in the state. This exemption further reduces the portion of your wages that can be garnished.

Handling Multiple Garnishments

If you are subject to multiple garnishments, the total amount withheld from your paycheck cannot exceed 25% of your disposable weekly earnings, regardless of how many creditors are seeking payment.

Special Debts with Different Rules

Certain debts—including child support, alimony, federal student loans, and taxes—are subject to different, often higher, garnishment limits. These debts may also be collected through wage garnishment without the need for a court judgment.

The Garnishment Process

Generally, a creditor must first obtain a court judgment before they can garnish your wages. Once a judgment is secured, your employer is served with a garnishment order specifying the amount to withhold. Employers typically remit garnished funds every 30 days. Each garnishment order lasts for six months but can be renewed.

Protecting Your Paycheck

To safeguard your income, it is essential to:

• Understand your legal rights regarding wage garnishment
• Respond promptly to court notices
• Negotiate with creditors when possible
• Explore available exemptions, including those for Social Security, disability, and certain pensions

Alternatives and Relief from Garnishment

Tennessee law allows you to file a “Motion to Set Payments in Lieu of Garnishment.” This motion enables you to propose a court-approved payment plan, which may reduce or halt garnishment if you have no other assets. Additionally, filing for bankruptcy will immediately stop most wage garnishments through the automatic stay provision.

Where should I go to stop a wage garnishment (court ordered garnishment)?

Arthur Ray of Arthur Ray Law Offices is a Memphis lawyer who has been practicing law for over 40 years. He can assist you in stopping a wage garnishment.

What is a judgment and wage garnishment (court order garnishment)?

In most instances, where you may be concerned, a judgment is an order of a court, as a result of a lawsuit that has been filed against you, where the plaintiff has won a certain amount which can be collected from you. Most often in Shelby County, the judgment is obtained in the General Session Court. Once a judgment against you has been obtained, the court can issue a garnishment against your wages for the amount that you owe.

How can you stop wage garnishment (court ordered garnishment)?

Filing for bankruptcy will, in most cases, stop your wages from being garnished.

You can file for a Chapter 13 bankruptcy plan, or file a Chapter 7 bankruptcy liquidation to stop your wage garnishment.

How fast can a bankruptcy stop your wage garnishment?

Many are hurrying to file because they were just recently notified by their payroll department that they have garnishment against their wages. In most cases if you come into Arthur Ray Law Offices you can file a Chapter 13 bankruptcy payment plan or Chapter 7 bankruptcy liquidation within a few hours after coming in. Once you have filed for bankruptcy, your payroll department will be notified and your wage garnishment should be stopped. In addition, we will prepare a plea in bankruptcy to be filed in your court case notifying the court not to issue any further wage garnishments.

Why should I just not let the garnishment continue and pay off the debt?

Something that many people are not aware of, is that not all of what is taken from your payroll check will go to reduce the amount you owe as a result of the judgment. Some of the amount taken from your check will go to fees and costs.

In a bankruptcy how much will I have to pay on the debt?

In most cases, the debt can be paid off in a Chapter 13 bankruptcy plan at a low percentage (in the bankruptcy court in Memphis the percentage can be as low as 10 cents on the dollar) and the debt can usually be completely eliminated in a Chapter 7 bankruptcy liquidation.

Do not act on anything you read on this site without hiring an attorney. This is why we offer, for free, to prepare a bankruptcy petition for you to see what works best in your personal financial situation. We provide representation for individuals who live in Lauderdale, Tipton, Fayette and Shelby County, Tennessee, who qualify to file bankruptcy in the Bankruptcy Court for the Western District of Tennessee located in Memphis, Tennessee.

Conclusion

By staying informed and proactive, you can better manage wage garnishment and protect your income from excessive withholding. Always consult with a licensed attorney to ensure you are taking the best steps for your specific situation.

^*For those who qualify under federal law.