Most people don't know how much of their income is legally protected from debt collectors. Federal law sets a floor — many states go much further.
Texas, Pennsylvania, North Carolina, and South Carolina prohibit private creditors from garnishing wages at all. If you live in these states, debt collectors cannot touch your paycheck — they can only sue and try to collect from bank accounts.
Under Title III of the Consumer Credit Protection Act (CCPA), federal law limits how much of your paycheck can be garnished:
| Rule | What It Means |
|---|---|
| 25% Rule | Collectors can take at most 25% of your "disposable earnings" (after taxes and mandatory deductions) |
| 30x Minimum Wage Rule | Your take-home pay must stay above 30 × federal minimum wage ($7.25) = $217.50/week. No garnishment allowed if you earn less than this. |
| Lesser of the Two | Courts use whichever rule results in a smaller garnishment |
Example: If you take home $600/week, the 25% rule allows $150/week garnishment. The 30x rule allows $382.50/week ($600 - $217.50). The lesser amount is $150 — so $150/week is the maximum.
Social Security benefits
SSI (Supplemental Security Income)
Veterans' benefits
Civil service retirement
Railroad retirement benefits
Workers' compensation
Unemployment benefits (varies by state)
Wages (25% max federally, less in some states)
Pension/retirement income
Bank account funds (mixed sources can complicate)
Even though Social Security is protected, once it's deposited in a bank account and mixed with other funds, it can be hard to trace. Banks must automatically protect an amount equal to 2 months of Social Security deposits, but additional funds may be at risk. Keep Social Security deposits in a separate account to maximize protection.
States can provide MORE protection than federal law, but not less. Here are the states with notable exemptions:
Private creditors cannot garnish wages at all in Texas. Only exception: IRS, student loans, child support, alimony. Texas also protects up to $60,000 in personal property and the homestead.
Wages are fully exempt from garnishment for most consumer debts. Creditors can only pursue bank accounts. Exceptions: domestic support, student loans, taxes.
Wages cannot be garnished for credit card debts, medical bills, or personal loans. Only taxes, domestic support, and student loans are exceptions.
Consumer creditors cannot garnish wages. The state constitution protects wages from private creditors. Only taxes and domestic support orders can garnish.
If you provide more than half of a family member's support, 100% of wages are exempt. Single individuals: 25% max (federal). Homestead protection is unlimited.
| State | Garnishment Limit | Notes |
|---|---|---|
| California | 25% of net pay OR amount above 40x minimum wage ($16/hr), whichever is less | More protective than federal; minimum wage higher |
| Colorado | 25% or above 40x minimum wage ($14.81/hr) | Higher floor than federal |
| Illinois | 15% of gross wages (not 25%) or above 45x minimum wage | Lower percentage than federal = more protection |
| Nevada | 25% or above 50x minimum wage ($12/hr) | Higher floor protects lower earners |
| Washington | 25% or above 35x state minimum wage ($16.28/hr) | High minimum wage raises the floor |
| Oregon | 25% or above 40x minimum wage ($14.70/hr) | Enhanced protection for lower-wage workers |
| New York | 10% of gross wages or above 30x state minimum wage ($16/hr) | 10% limit is far more protective than 25% federal |
| Minnesota | 25% or above 40x minimum wage ($10.59/hr) | Also protects 75% of pension income |
The remaining states follow the federal standard. This still means creditors can't take more than 25% of your disposable income:
Alabama, Alaska, Arizona, Arkansas, Connecticut, Delaware, Georgia, Hawaii, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, North Dakota, Ohio, Oklahoma, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Virginia, West Virginia, Wisconsin, Wyoming
| Income Type | Protected From | Exception |
|---|---|---|
| Social Security (retirement) | All private creditors | Federal taxes, student loans, child support |
| Social Security Disability (SSDI) | All private creditors | Child support, alimony |
| SSI (Supplemental Security Income) | All creditors including government | None — 100% protected |
| Veterans' Benefits (VA) | All private creditors | Child support, alimony |
| Workers' Compensation | All creditors | Child support (varies by state) |
| Federal Employee Retirement (FERS/CSRS) | Private creditors | IRS, domestic support |
| Unemployment Insurance | Most private creditors | Varies by state; some allow limited garnishment |
If a creditor has started garnishing your wages and you believe an exemption applies:
Before they can garnish your wages, collectors must get a court judgment. A properly written demand letter can stop harassment and force them to validate the debt.
Generate Free Demand LetterYes. Social Security benefits are fully exempt from garnishment by private creditors (debt collectors, credit card companies, medical debt collectors). Only the federal government can garnish Social Security — for tax debts, student loans, or child support. Banks must automatically protect the equivalent of 2 months of Social Security benefits in your account.
No. Federal law limits garnishment to the lesser of: 25% of disposable earnings, or the amount by which disposable earnings exceed 30 times the federal minimum wage ($217.50/week). Some states have stricter limits — Texas, South Carolina, North Carolina, and Pennsylvania prohibit garnishment for most consumer debts entirely.
The most protective states are: Texas (100% exempt for consumer debts), Pennsylvania (100% exempt for consumer debts), North Carolina (100% exempt for consumer debts), South Carolina (100% exempt for consumer debts), and Florida (100% for head of household). These states prohibit private creditors from garnishing wages entirely.
Federal pension plans (FERS, CSRS) and private pension plans covered by ERISA are generally protected from private creditors. Government pensions can be garnished for domestic support orders. State pensions vary by state law — check your specific state.
Yes, for private debts (credit cards, medical bills, personal loans). A creditor must sue you, win a judgment, then obtain a garnishment order from the court. The exceptions are: IRS tax debts, federal student loans, child support, and alimony — these agencies can garnish without a court lawsuit.