Wage garnishment is a legal process that allows creditors to collect unpaid debts by taking a portion of a debtor’s earnings directly from their employer. This is understandably concerning for married couples who may worry about their wages being garnished for a spouse’s debt. So can spouses wages be garnished?
The answer depends on several factors, including whether you live in a community property state the type of debt and whether you co-signed on any loans. Below is a comprehensive guide on when and how a spouse’s wages can be garnished.
Community Property vs. Common Law States
The first factor to consider is whether you live in a community property state or a common law state. There are nine community property states in the U.S – Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.
In these states, any income earned or debt acquired during the marriage is considered joint property, equally owned by both spouses This means if one spouse defaults on a debt, the creditor can pursue collection from the wages of the other spouse, even if their name isn’t on the debt
The rest of the states follow common law property rules. Under these laws, spouses are not responsible for each other’s debts by default. Creditors can only garnish the wages of the spouse who is actually named on the account or loan.
However, there are a few exceptions to this rule.
Exceptions in Common Law States
While common law states generally protect spouses from wage garnishment for the other’s debts, there are some cases where garnishment is allowed:
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Joint debts: If spouses apply and are approved together for a credit card or loan, they become jointly responsible for repayment. Failure to pay by one spouse would allow creditors to garnish the wages of the other.
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Necessities: In some cases, spouses may be liable for debts incurred to pay for basic necessities like food, clothing, and shelter for the family.
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Shared bank accounts: If wages are deposited into a jointly held bank account, creditors may be able to garnish it regardless of which spouse incurred the debt.
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Co-signing loans: When a spouse co-signs on a loan, they are equally responsible for repayment. So if the primary borrower defaults, the co-signer’s wages can be garnished.
So while common law states offer more protection, there are still scenarios where spouses’ wages are vulnerable to garnishment for the other’s debts.
Limits on Wage Garnishment
Fortunately, there are federal and state laws that limit the amount creditors can garnish from your paycheck:
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The maximum wage garnishment under federal law is the lesser of 25% of your disposable earnings or the amount exceeding 30 times the federal minimum wage.
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Many states also have their own wage garnishment caps, though state laws cannot allow garnishment of more than the federal limit.
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The total garnishments from multiple creditors is also capped at the maximum limit.
So even if your wages can be legally garnished, there are restrictions on how much can be taken.
How to Prevent Wage Garnishment
If you’re concerned about creditors garnishing your wages for a spouse’s debts, there are some precautions you can take:
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Avoid joint accounts and co-signing loans: Keep finances as separate as possible. Open individual bank accounts and credit cards.
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Review debts with your spouse: Discuss any outstanding debts and make a plan to pay them off or settle disputes with creditors.
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Consult an attorney: If you believe your wages are being wrongfully garnished, contact a lawyer immediately.
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File for bankruptcy: Declaring bankruptcy stops wage garnishment and discharges many debts. Talk to a bankruptcy lawyer about your options.
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Negotiate with creditors: You may be able to avoid garnishment by setting up affordable payment plans.
The Takeaway
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In community property states, spouses’ wages can be garnished for debts incurred by the other spouse.
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Common law states generally protect spouses from wage garnishment, but joint debts, co-signing loans, and shared accounts are exceptions.
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Federal and state wage garnishment laws limit the maximum amount that can be deducted from your paycheck.
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Consult an attorney if you feel your wages are being wrongfully garnished to explore your options.
So while there are some scenarios where wage garnishment of a spouse is possible, protections exist to limit how much earnings creditors can seize. With proper precautions and legal guidance, couples can reduce their risk.
Federal debt collection laws can protect you
Knowing your rights makes it easier to stand up for your rights. Below, we’ve compiled all our articles on federal debt collection laws that protect you from unfair practices.
The ability to garnish an account depends on multiple factors
The ability of a creditor, or debt collector, to garnish your spouses bank account depends on multiple factors, including the type of account your spouse uses, the nature of the debt, and the state in which you and your spouse reside.
As a general rule, if your spouse has a separate checking account held solely in their name, then a creditor who obtains a judgment against you cannot get a garnishment order to access your spouses account. However, the answer is different if you and your spouse have funds in a joint checking account.
If you have a joint checking account with your spouse, the ability of a creditor to access that account to satisfy a debt collection judgment depends primarily on whether you and your spouse reside in a common law state or community property state. Lets take a look at each.
How Do I Handle My Wages Being Garnished?
FAQ
Does wage garnishment affect a spouse?
So, the short answer is that your spouse typically won’t be affected if your wages are garnished. If you need to stop wage garnishment, bankruptcy can help.
Is your spouse liable for your debt?
Can creditors go after my spouse for my debt?
Creditors: – Creditors typically cannot pursue you for your spouse’s individual debts unless you co-signed or guaranteed those debts. Legal Advice: – It’s always a good idea to consult with a legal professional who can provide advice based on your specific situation and local laws.
Who is exempt from garnishment?
You can challenge a garnishment if you’re receiving certain types of income that are exempt from garnishment like Social Security, unemployment, and retirement benefits. To do so, you simply need to file paperwork with the clerk of the court that granted the garnishment order.
Can my spouse’s wages be garnished for a debt I owe?
In general, your spouse’s wages cannot be garnished for a debt you owe if they have a separate checking account held solely in their name. You can prevent wage garnishment by fighting off debt collectors in court with SoloSuit.
Can a spouse’s account be garnished?
The distinction between joint and individual debts plays a key role in determining whether a spouse’s account can be garnished. Joint debts, such as a mortgage or co-signed loan, hold both parties responsible, allowing creditors to pursue either spouse, which can lead to garnishment of joint accounts.
Can a creditor garnish wages from a joint bank account?
Summary: If you and your wife reside in a community property state, then there is a legitimate risk that a creditor will garnish wages from a joint bank account to pay a debt that only you owe. In general, your spouse’s wages cannot be garnished for a debt you owe if they have a separate checking account held solely in their name.
Can a joint bank account be garnished if my wife owes a debt?
Protect your assets by filing a response to debt collection lawsuits with SoloSuit. If you and your wife reside in a community property state, then there is a legitimate risk that a creditor will be able to access a joint bank account to garnish funds to pay a debt only you owe.
Can a creditor garnish your spouse’s income?
But your spouse’s income is safe. The creditor can’t send a wage garnishment order to their job. Tax refunds are different. The U.S. Department of Education can seize the entire federal tax refund if you file married filing jointly. If that happens, all isn’t lost.
Can a creditor garnish your wages?
Even if the creditor can put the bite on your wages, you still have some protection. If your after-tax wages are less than 30 times the federal minimum wage, your paycheck can’t usually be garnished. A creditor can take anything over that figure, or garnish 25 percent of your after-tax earnings, whichever is smaller, according to federal law.