Can a Debt Collector Garnish My Wages in Texas?

 Posted on March 06, 2025 in Debt Collection

 It is a common myth that debt collectors can garnish a person’s wages when they have not repaid their debts. While this is true in many states across the country, it is mostly not true in Texas. Under Texas law, a person’s wages can be garnished only for very specific reasons, and consumer debt collection is not one of them. If you are in debt and fear that your wages may be garnished, read on to learn more about the law in Texas and contact a San Antonio, TX wage garnishment attorney.

What Is Wage Garnishment?

Wage garnishments, also sometimes referred to as wage attachments, are court orders that are sent to a borrower’s employer when they have not repaid their debt. Once the employer receives the order, the employer is then required to withhold a certain amount of money from the employee’s paycheck. The employer must then send the amount that was withheld to the creditor.

What Types of Wages Can Be Garnished in Texas?

In Texas, wage garnishments are only allowed for child support, alimony, taxes, and student loans. The amount of wages that are garnished from a person’s paycheck will depend on different factors. Still, it is generally believed that people should still have enough to live on after the garnishment, so federal law does set a limit on how much can be taken from a person’s paycheck.

Can an Employer Fire You Over a Wage Garnishment?

Employers typically do not like wage garnishments because they create more work for them. The employer must first withhold a certain percentage from an employee’s paycheck and is then responsible for forwarding those funds to the creditor. As such, many employees worry that if a valid wage garnishment is taken from their paycheck, their employer may fire them. In most cases, there is no cause for concern.

The Consumer Credit Protection Act is a federal law that prohibits employers from firing an employee over one wage garnishment. However, when an employee has two or more wage garnishments taken out of their paycheck, employers are not prohibited from terminating the employee. Texas also has its own laws on wage garnishment that largely mirror the federal law.

What Are the Consequences of Wage Garnishment?

Beyond the immediate financial difficulties you can experience if your wages are garnished, wage garnishment can also affect your long-term financial health by making it more difficult for you to make timely payments on your bills. Creditors can also report delinquent debt, and the fact that your wages are being collected to satisfy that debt, which can impact your credit score. Additionally, the emotional harm of seeing your hard-earned wages evaporate cannot be overstated.

Can a Creditor Freeze Your Bank Account Instead of Garnishing Your Wages?

Although wage garnishment is generally not allowed in Texas except for a few types of debts, this does not mean that creditors cannot take action to collect on debts. Instead of garnishing wages, they do have the authority to freeze a person’s bank account. This means that while the funds will not come directly off of an employee’s paycheck, they still may not be able to access those funds once they are deposited into the bank account.

In fact, a bank account freeze, also known as an account levy or writ of garnishment, may effectively be the same as a wage garnishment. The difference is that wage garnishment takes your money before it is deposited in your account, while an account freeze prevents you from accessing the funds in your account. Creditors often turn to account freezing when they cannot garnish wages, and given that most wages cannot be garnished in Texas, account freezing is a fairly common procedure in the state.

How Can a Creditor Freeze Your Account?

If a creditor obtains a judgment against a debtor requiring the debtor to pay the debts that are owed, the creditor may then ask the court to issue a turnover order, which is sent to a debtor’s bank, and the bank will freeze their bank account. This will prevent them from withdrawing any money from the account. Some or all of the funds in the account may then be seized by the creditor. If a bank account is frozen, any funds deposited into the account, including wages received from an employer through direct deposit, will be inaccessible. Even if the account is a joint account and the debtor’s spouse owes the debt, a creditor may still freeze the account.

How Can You Protect Your Bank Account From Being Frozen?

By understanding the types of actions a creditor can take, a debtor who is facing this type of situation can determine their best options for receiving relief from their debts.

Monitor Your Accounts

If you have reason to believe that a creditor may attempt to freeze your account, you should keep track of your accounts so you can take action as soon as possible if the account is frozen.

Know the Exceptions

Fortunately, there are exceptions that protect debtors. Social Security payments, veterans administration benefits, pension and retirement benefits, and proceeds from the sale of a homestead are exempt from seizure, and creditors are not allowed to seize domestic support obligations, including child support or spousal support payments that a person has received.

Remove Exempt Funds

If a debtor believes that their account may be frozen, they may place the exempt assets in a separate account. If creditors freeze an account that contains exempt assets, the debtor can file a Protected Property Claim form to unfreeze this account or obtain access to the exempt funds.

Understand the Notice Requirements

Since 2022 Texas has by law required creditors to give debtors 17 days after an account has been frozen to notify them of any funds that should be exempt from seizure.

Stop Deposits

If the account is frozen, the debtor should take action to cease the flow of new money into the account, such as by stopping direct deposit and ensuring they receive wages through other methods.

What Legal Action Can You Take After Wage Garnishment or an Account Freeze?

Whether your wages are garnished or your account is frozen, the resulting financial hardship can take a toll, and you may be concerned about the effect on your ability to pay your bills. There are legal options you can take, however, whether your account is frozen through an account levy or your wages are garnished because your debt falls into one of the narrow categories of debts that are subject to wage garnishment in Texas.

Challenge the Garnishment in Court

You can challenge the legality of the wage garnishment if the creditor did not sufficiently prove that you actually owe the debt or that they have the right to collect the debt. You can also challenge the garnishment on the grounds that the creditor did not follow the proper legal procedure or if there are other errors, such as if the statute of limitations has passed. For this reason, it is important to contact an attorney as soon as you receive notice that your bank account has been frozen or your wages have been garnished.

Seek a Temporary Restraining Order

If your account is frozen, you can seek a temporary restraining order to pause the judgment, potentially giving you time to settle the debt.

Negotiate With Creditors

You can attempt to negotiate a settlement of the debt with your creditors to remove the garnishment or bank freeze.

File for Bankruptcy

Filing for bankruptcy will halt any collection actions through the automatic stay, and it may allow you to eliminate your debts and avoid ongoing difficulties. However, keep in mind that if your wages are being garnished due to debt for child support or alimony obligations, bankruptcy will not pause payments to creditors on this debt.

Call a San Antonio, TX Wage Garnishment Lawyer Today

No one wants to have their wages garnished, but when it happens, too many people allow the garnishment to remain in place until the debt is paid. If a creditor has started garnishing your wages, our experienced San Antonio, TX wage garnishment lawyer at the Law Offices of Chance M. McGhee can assist with your case. We know the defenses available to fight wage garnishments and will use them to give you the best chance of success in your case. Call us today at 210-342-3400 or fill out our online form to schedule a free consultation.