Overview

• The Consumer Credit Protection Act (CCPA) is a federal law that governs wage garnishment. The CCPA sets limits, regarding the amount a creditor can garnish, that states cannot exceed. Texas has its own garnishment laws that govern wage garnishment within the state. However, the procedure is the same in Texas as in other states. In Texas, employers must comply with a writ of garnishment, otherwise they become liable.
  
  

Texas Law

• In Texas, a creditor can get a writ of garnishment for unpaid child support, taxes and student loan debt. This means that creditors can garnish more than 25 percent of a Texas employee's "disposable" earnings, after taxes and other mandatory deductions. Under federal law, creditors cannot garnish more than 25 percent; however, this doesn't apply to child support arrearages or unpaid taxes.
  
  

Employer's Responsibility

• Employers are liable if they do not comply with an order of garnishment. This is why, pursuant to federal law, an employer can legally terminate an employee if the employee has more than one garnishment. When a creditor obtains a garnishment order from a court, the order is then sent to the debtor-employee's employer. The payroll department then calculates the appropriate amount and deducts it from the employee's paychecks. An employer can inform an employee immediately about an order of garnishment; however, the employer does not need the employee's permission before complying with the garnishment order.
  
  

Considerations

• If your paychecks are being garnished by a credit card company, or for another type of unsecured debt, you should fight the garnishment because the state of Texas doesn't allow these types of creditors to garnish wages. If you're successful, your employer is required to stop deducting any garnishment. It's important to speak to someone in your employer's payroll department to determine who obtained an order of garnishment against you.