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Can credit card debt lead to wage garnishments?

If you have excessive credit card debt in Texas, you are not alone. Millions of Americans have a substantial amount of debt, that in some cases, they are not able to repay. In some states, creditors are able to garnish up to 25 percent of debtors’ paychecks in an attempt to collect unpaid credit card funds, medical expenses and student loans. Texas, however, is one in four states that bans creditors from wage garnishment, according to NPR.org.

In half of the states in the nation, creditors can file a lawsuit against debtors. If the case is ruled in their favor, the debtor could have up to a quarter of their paycheck before taxes taken out. This can be a big blow to middle class Americans, who are not only trying to keep up with their everyday bills, but are trying to survive on a mediocre income. Statistics show that one in 10 people in the country between the ages of 35 and 44 currently have money taken out of their paychecks for unpaid debt.

Texas law does allow wage garnishments for money owed for child support, taxes, student loans and alimony. The protection only covers those who have unpaid credit card and medical debt. Ultimately, creditors are held to state laws when it comes practicing various collection methods. As a debtor, you want to ensure that you understand all of these laws, as well as what you are entitled to.

This information is intended to educate and should not be taken as legal advice. 

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