Tennessee Wage Garnishment Checklist
What Wage Garnishment Means
Wage garnishment is a legal process that allows creditors to collect unpaid debts by taking money directly from your paycheck before you receive it. A garnishment order instructs your employer to withhold a portion of your disposable income and send that money to the judgment creditor or the court clerk.
Types of Debts That Can Lead to Garnishment
Consumer debt from credit card bills, personal loans, and medical bills can be garnished after a creditor obtains a court judgment. Child support collections do not require a court judgment because support payments are enforced through administrative garnishment.
Tax debt owed to the Internal Revenue Service or Tennessee state agencies can result in garnishment without a court judgment. Student loans guaranteed by the federal government can also be collected through administrative garnishment.
How Much Can Be Garnished From Your Paycheck
Federal law sets limits on the amount creditors can take from your wages each week. The
Consumer Credit Protection Act restricts garnishment to the lesser of two amounts: twenty-five percent of your disposable income or the amount by which your weekly disposable income exceeds thirty times the federal minimum wage.
Child support garnishment follows different rules and can take up to 50% of your disposable income if you support another family, or 60% if you do not. Tax debt garnishment by the Internal
Revenue Service or state agencies is not subject to the 25% limit. It can take longer, based on a formula that factors in your monthly bills and dependents.
The Garnishment Process in Tennessee
The garnishment process begins when a creditor files a debt lawsuit in General Sessions Court or Civil Court and obtains a judgment against you. After receiving the judgment, the creditor can file garnishment paperwork with the clerk's office and serve a garnishment order on your employer.
Your employer must begin withholding money from your paycheck within a specific timeframe.
Tennessee courts issue garnishment orders that remain valid for 6 months and can be renewed multiple times until the debt is paid.
Protections Under Federal and State Law
Federal law protects you from losing your job because of wage garnishment for a single debt.
The Consumer Credit Protection Act prohibits employers from firing employees whose wages are garnished for any one debt, regardless of how many levies the creditor makes to collect that debt.
Specific income sources are fully protected from garnishment under federal law. Most creditors cannot garnish Social Security benefits, disability payments, and veterans’ benefits, except for child support and federal tax debt.
Options to Stop or Reduce Garnishment
You have several options to stop wage garnishment or reduce the amount taken from your
paycheck
- Paying the debt in full immediately stops the garnishment once the creditor receives full
payment and notifies your employer.
- Negotiating a payment plan with the judgment creditor or debt collectors may result in an
arrangement that stops the garnishment.
- Filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy creates an automatic stay that
stops most garnishments immediately.
- Challenging the garnishment by filing objections with the clerk and master's office can
stop garnishment that exceeds legal limits or attaches protected income.
- Requesting exemptions under Tennessee law may protect heads of household who
need income for basic living expenses.
Chapter 13 bankruptcy allows you to include dischargeable debts in a reorganization payment plan while stopping garnishment and protecting your property. Chapter 7 bankruptcy discharges most consumer debt quickly, but does not discharge child support or most tax debt.
Steps to Take After Receiving a Garnishment Notice
Follow these steps to respond effectively to a garnishment notice
1. Contact the court clerk or clerk's office listed on the garnishment notice to verify the debt and the amount owed.
2. Request copies of all court documents related to the judgment and garnishment order from the clerk's office.
3. Review your pay stubs to confirm the garnishment amount matches the legal limits under
Tennessee law.
4. Gather financial documents showing your monthly income, monthly bills, and necessary expenses.
5. Consider whether you qualify for exemptions based on your financial situation and household status.
6. Contact bankruptcy attorneys or debt relief organizations if you cannot afford the garnishment and need legal guidance.
Common Mistakes to Avoid
- Ignoring garnishment notices or court documents from the Civil Division or General
Sessions Court can result in default judgments and additional collection actions.
- Assuming you have no options once garnishment begins prevents you from accessing
exemptions and remedies available under Tennessee law, even after a garnishment order takes effect.
- Stopping payments to other creditors without understanding the impact on your overall
debt relief goals can worsen your financial situation.
- Working with debt collectors or debt settlement companies without verifying their
credentials through the Better Business Bureau or checking client testimonials may expose you to collection harassment or ineffective services.
- Filing for bankruptcy without consulting bankruptcy attorneys may mean you do not
understand how it affects your specific situation and available options.
- Failing to keep detailed records of all garnishment amounts withheld from your paycheck
using payroll software records or pay stubs makes it difficult to verify compliance with legal limits.
Moving Forward
Wage garnishment can create financial hardship, but Tennessee law and federal law provide protections and options to help you manage the situation. Understanding garnishment limits, knowing your rights under the Consumer Credit Protection Act, and taking prompt action can help you reduce the impact on your finances.
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