Understanding Wage Garnishment Laws in Texas

 Posted on August 15, 2025 in Bankruptcy

Most Texans carry some form of debt, whether from credit cards, medical bills, personal loans, or other obligations. While many households manage to keep up with payments through careful budgeting and financial planning, unexpected life events, such as job loss, illness, injury, or divorce, can quickly throw even the most responsible person into financial distress.

When debts add up, some creditors may pursue aggressive collection tactics. One of the most disruptive is wage garnishment, which is taking money directly from your paycheck to satisfy a debt. In Texas, wage garnishment laws are much more restrictive than in many other states, but there are important exceptions that can still impact workers. Understanding these rules is essential for protecting your income and knowing your legal options.

With over 20 years of experience helping individuals and families overcome financial challenges, our Boerne consumer bankruptcy lawyer at Law Offices of Chance M. McGhee provides skilled guidance to good people throughout Central Texas who need help. Our firm offers free consultations so you can understand your options, including how bankruptcy can stop certain types of wage garnishment.

What Is Wage Garnishment?

Wage garnishment is when a court orders an employer to withhold a portion of an employee’s earnings to pay a debt. The withheld money is sent directly to the creditor or agency that obtained the order.

In most states, wage garnishment is a common tool for collecting consumer debt. However, Texas takes a different approach, placing strong protections on wages in most situations. This means creditors cannot simply take part of your paycheck without meeting very specific legal requirements.

Wage Garnishment Rules in Texas

Texas law generally prohibits wage garnishment for consumer debts such as credit cards, personal loans, and medical bills. This is a significant protection for Texas workers compared to residents of many other states. However, there are exceptions where wage garnishment is allowed:

• Child Support and Alimony: Federal and state laws require employers to garnish wages for court-ordered child support or spousal maintenance (alimony). In fact, these obligations have priority over most other debts.

• Taxes: The Internal Revenue Service (IRS) and Texas Comptroller can garnish wages for unpaid federal or state taxes without first going to court.

• Federal Student Loans: The U.S. Department of Education can garnish wages administratively for defaulted federal student loans.

• Certain Government Debts: Other government-related debts, such as overpayment of unemployment benefits, may be subject to garnishment.

If you were born outside Texas or earn wages from a Texas-based employer while living in another state, the rules can become more complicated. Creditors sometimes attempt to take advantage of these complexities, which makes having a good Texas bankruptcy attorney very important.

What Creditors Can Still Do Without Wage Garnishment

While creditors may not be able to garnish wages for most consumer debts in Texas, they can still pursue other aggressive collection methods. The most common is bank account garnishment, also known as a bank levy. If a creditor obtains a judgment against you, they can seize funds from your bank account, even if those funds came from your wages after you were paid.

Creditors can also place liens on property or seize certain non-exempt assets. These tactics can create serious financial strain and are often just as disruptive as wage garnishment.

What to Do if You Face Wage Garnishment 

If you are notified of a wage garnishment order, it is important to act quickly and do the following: 

• Review the Order: Make sure it is valid and issued for a debt that can legally be garnished in Texas.

• Communicate With Everyone Involved: Stay in contact with the creditor, collection agency, your employer’s payroll department, and your attorney. Avoiding calls or letters will not stop the garnishment and can make the situation worse.

• Know Your Employment Rights: Under federal law, an employer cannot fire you solely because your wages are being garnished for one debt. This protection applies only to the first garnishment.

• Consider Bankruptcy: Bankruptcy may be able to stop certain garnishments immediately, depending on the type of debt.

Because wage garnishment for certain debts often means there are serious financial issues at stake, working with a bankruptcy lawyer can help you decide whether Chapter 7 or Chapter 13 bankruptcy could resolve your debt problems and protect your income.

Even if you are sure you should not be on the hook for debt, do not leave it unaddressed. Ignoring the problem will not make it go away and can put you in even more serious financial trouble. Although you may be able to get the debt taken care of entirely through bankruptcy, you will need to work with an experienced lawyer to take the next steps and stop the wage garnishment or bank account levy.

How Bankruptcy Can Help Stop Wage Garnishment

Filing for bankruptcy triggers an automatic stay, which is a court order that stops most collection actions, including wage garnishment, bank levies, foreclosure, and repossession. The automatic stay applies immediately upon filing and remains in effect during the bankruptcy case, unless a creditor successfully petitions the court to lift it.

In Texas, bankruptcy can be particularly effective in addressing garnishments for unsecured debts that have led to a bank account levy or for stopping other forms of aggressive collection. It may also help with certain tax debts, depending on how old the debt is and whether it meets discharge requirements.

A Chapter 7 bankruptcy can wipe out many unsecured debts, giving you a fresh start. A Chapter 13 bankruptcy can restructure your debts into a manageable repayment plan, often reducing the total amount you owe and allowing you to catch up on obligations like child support or back taxes without losing your property.

Contact a New Braunfels, TX Bankruptcy Lawyer

If you are facing wage garnishment, you do not have to face creditors alone. The Law Offices of Chance M. McGhee offers free consultations to discuss your situation, explain your rights, and outline your options. We know how stressful wage garnishment can be, not just financially, but emotionally, and we work to give our clients both protection and peace of mind.

You have legal rights when it comes to wage garnishment in Texas. Contact a Boerne, TX consumer bankruptcy attorney at Law Offices of Chance M. McGhee by calling 210-342-3400 to schedule your free consultation. With over 20 years of experience, we are ready to help you find a path toward financial stability.