If you’re asking yourself, “Can debt collectors garnish wages in California?” the answer is yes — but not without going through a specific legal process and within strict limits set by state and federal law.
Wage garnishment is a legal tool used in debt collection, allowing creditors to recover unpaid debts by deducting a portion of a debtor’s wages after obtaining a court order.
Whether you owe money due to credit card debt, medical bills, unpaid taxes, or child support, understanding the wage garnishment process in California is crucial to protect your income and your rights.
Key Takeaways
Wage garnishment in California is subject to stricter limits than federal law, meaning creditors can only take a limited percentage of your disposable earnings, especially in areas with higher local minimum wages.
Not all garnishments require a court judgment—certain debts like unpaid child support, federal taxes, and federal student loans can trigger administrative garnishment without a lawsuit.
Debtors facing financial hardship can file a Claim of Exemption to potentially stop or reduce wage garnishment if it interferes with meeting basic living expenses.
What Is Wage Garnishment?
Wage garnishment occurs when a creditor sues you in court, wins a court judgment, and then obtains a wage garnishment order to take a portion of your paycheck to recover debts. Garnishing wages is a legal method creditors, debt collectors, and debt buyers use to recover debts.
This process is governed by both federal and state laws.
In California, creditors, debt collectors, and debt buyers must follow specific rules under California wage garnishment laws, which offer stronger protections than federal law in some cases. After obtaining a wage garnishment order, the process involves serving garnishment papers to both the debtor and the employer.
Types of Debt That Can Lead to Wage Garnishment
Here are some of the most common types of debt that can result in garnished wages:
Unpaid child support and child support garnishments
Federal student loans
Back taxes or federal taxes
Consumer debt (e.g., credit cards or personal loans)
Medical bills
Each type of debt has its own rules for garnishment limits and legal limits on how much can be taken from your paycheck. Once a court judgment is obtained, the creditor becomes a judgment creditor and can pursue wage garnishment.
How the Garnishment Process Works in California
A creditor files a lawsuit and obtains a court judgment against you (now labeled a judgment debtor).
The court issues an earnings withholding order.
A levying officer (usually the sheriff) serves the order to your employer.
Your employer is required to withhold a portion of your employee’s disposable earnings each pay period to satisfy the employee’s debt and send it to the creditor. The amount withheld is calculated based on the employee’s disposable earnings for each pay period.
Disposable earnings refer to the amount left after mandatory deductions like taxes, state unemployment insurance tax, and Social Security.
Federal Law: The National Framework for Wage Garnishment Limits in California
Under state law, which sets stricter limits than federal law, only a portion of your employee’s disposable earnings can be garnished:
The maximum garnishment amount is 25% of the judgment debtor’s earnings or the amount by which your weekly disposable earnings exceed 40 times the state minimum hourly wage, whichever is less.
California also considers the local minimum hourly wage, which can be higher in cities like San Francisco or Los Angeles.
This is more protective than the current federal minimum wage, which is $7.25/hour. California’s state minimum hourly wage is higher, which reduces the amount creditors can take from your paycheck. For tax levies, the taxpayer’s standard deduction may affect the amount of wages protected from garnishment.
Exceptions: When Garnishment Can Happen Without a Court Judgment
Some debts do not require a court judgment:
Child support payments (through administrative garnishment to enforce court orders to pay child support; federal laws set limits on how much of your disposable income can be garnished for unpaid child support)
Federal student loans
Federal taxes
In these cases, the federal government can garnish your wages directly without court involvement.
Can You Stop Wage Garnishment?
Yes. If you’re facing wage garnishment in California, here are some steps you can take:
File a Claim of Exemption: Filing an exemption claim is the process for asserting your right to protect part of your wages from garnishment. If garnishing your wages causes financial hardship, such as not being able to pay basic living expenses, you can ask the court clerk for a claim of exemption form. Court rules determine how exemption claims are reviewed and decided. If the judgment debtor proves hardship, the court may reduce or stop the garnishment, and judgment creditors must comply with the court’s decision.
Seek Debt Relief: Working with a legal aid association or bankruptcy attorney can help you explore options like settlement, negotiation, or bankruptcy to manage past due consumer debt.
Challenge the Debt: If a debt collector or debt buyer is trying to collect consumer debt you don’t owe, you have the right to dispute it in court.
Important Considerations
Married person filing separately: Income and deductions may differ, which can affect disposable earnings and garnishment amounts.
Local taxes and state and federal law may further complicate the garnishment calculation.
Employers cannot fire you for one garnishment, but multiple wage garnishments may put your job at risk.
Some debts may involve multiple wage garnishments at once, like credit card debt and child support.
Using Bankruptcy to Stop Wage Garnishment in California
If you’re struggling with wage garnishment and overwhelmed by debt, filing for bankruptcy may offer immediate relief. When you file for Chapter 7 or Chapter 13 bankruptcy, an automatic stay goes into effect, halting most collection efforts — including wage garnishment — almost instantly.
This legal protection gives you time to assess your financial situation and work with the bankruptcy court to discharge or restructure your debts. Chapter 7 can eliminate qualifying unsecured debts like credit card debt and medical bills, while Chapter 13 allows you to create a manageable repayment plan to catch up on debts such as child support or tax obligations.
Not only can bankruptcy stop current garnishments, but in some cases, it may also allow you to recover wages already garnished shortly before filing. Consulting with a qualified bankruptcy attorney is essential to determine the best course of action based on your specific situation.
Contact SB Legal, bankruptcy attorneys in California, who can help you fight wage garnishment as we have done so before for our clients. We offer a free initial consultation!
Conclusion: Know Your Rights Under California Law
So, can debt collectors garnish wages in California? Yes — but only after a court process, and not without limits. Whether you’re dealing with credit card debt, unpaid child support, or federal student loans, it’s essential to understand your rights and options under California law and federal law.
If you’re struggling with wages garnished or need help understanding your claim of exemption, consider reaching out to a qualified debt relief attorney or legal aid association to protect your income and financial future.
Frequently Asked Questions
How long does a wage garnishment typically last in California?
A wage garnishment continues until the full debt is paid off, the judgment expires (usually 10 years but renewable), or the court orders it to stop. If the debtor files for bankruptcy or negotiates a settlement, the garnishment may also be suspended or terminated earlier.
Can my bank account be garnished separately from my wages?
Yes. In addition to wage garnishment, creditors may request a bank levy to freeze and withdraw funds from your bank account. This process requires a separate court order and is subject to different legal protections and exemptions under California law.
What happens if my employer fails to comply with a wage garnishment order?
Employers are legally obligated to follow a valid wage garnishment order. If they fail to do so, they may be held liable for the debt owed and face legal penalties. Additionally, they are prohibited from retaliating against an employee for a single garnishment order.