Understanding Wage Garnishment Laws in Texas

 Posted on January 28, 2015 in Bankruptcy

Most Americans have some form of debt, and many struggle to make payments. Some are fortunate enough to get by with responsible budgeting, consolidation, and other financial strategies. However, unexpected circumstances, such as a suffering an injury or losing a job, can cause a debtor to fall behind. In some cases, creditors will garnish a debtor’s income to pay debt.

Although wage garnishment can severely limit a person's financial freedoms, certain requirements must be met in order for wage garnishments to be legal. This article will briefly discuss how wage garnishment laws work in Texas.

Texas Laws Regarding Garnished Wages

For citizens of Texas, creditors cannot garnish wages to pay consumer debt, according to NPR. However, debts involving taxes, student loans, alimony, and child support may lead to wage garnishment.

Also, whether or not the debtor was born in Texas may affect the creditor’s ability to garnish wages. There are other complexities to these laws, which is why the guidance of a bankruptcy lawyer may prove invaluable.

What to Do When Wage Garnishment Begins

When wage garnishment begins, it is important that the debtor remains in contact with all relevant parties. These include the creditor, collections agency, and any attorneys involved. Do not avoid phone calls from these parties.

Although it may seem embarrassing or uncomfortable for an employer to learn about your debt, employees cannot lose their jobs due to wage garnishment—provided this is the first time it has happened.

Filing for bankruptcy may be a smart option if you face wage garnishment. A bankruptcy attorney can assess the facts of your case to determine if this is the right decision.

If you wish to learn how bankruptcy might help you financial situation, contact an experienced San Antonio bankruptcy lawyer. The Law Offices of Chance M. McGhee may be able to help. For more than 20 years, Mr. McGhee has helped clients return to financial stability, and he may be able to do the same for you. To schedule a free consultation, call us at 210-342-3400.