Having money taken directly from your paycheck can create an immediate financial burden. A wage garnishment can make it difficult to pay rent or a mortgage, utilities, groceries, transportation costs, and other everyday expenses.

For Wisconsin consumers facing a wage garnishment, there may be several ways to reduce or stop the garnishment depending on the type of debt, the circumstances of the garnishment, and your household finances. Wisconsin law provides exemptions and procedures that may protect some or all of your wages, and Chapter 128 may provide another option for eligible individuals.

Understanding how wage garnishment works is the first step toward determining what options may be available.

This article is for informational purposes only and does not constitute legal advice. Reading it does not create an attorney-client relationship. For guidance specific to your situation, consult a licensed Wisconsin attorney.

What Is a Wage Garnishment?

A wage garnishment occurs when a creditor obtains the legal ability to require your employer to withhold a portion of your paycheck and send that money toward a debt.

For many consumer debts, wage garnishment generally follows a court judgment. Once a garnishment is properly established, your employer, known as the garnishee, is required to follow the applicable garnishment order and procedures.

Wisconsin's garnishment laws are primarily found in Chapter 812 of the Wisconsin Statutes.

How Much Can Be Garnished in Wisconsin?

Wisconsin law generally protects 80% of a debtor's disposable earnings from an ordinary earnings garnishment, meaning that up to 20% may generally be subject to garnishment. There are important exceptions and additional limitations depending on the debtor's household income and the type of debt involved.

If a garnishment of 20% would cause your household income to fall below the applicable poverty level, Wisconsin law can limit the amount that may be garnished. In certain circumstances, a person's earnings may be completely exempt, including when household income is below the poverty line or when the person qualifies under certain need-based public assistance provisions.

The rules can be different for obligations such as child support, unpaid taxes, and certain debts connected with Chapter 128 or bankruptcy proceedings.

Claiming an Exemption or Limitation

One way to stop or reduce a Wisconsin wage garnishment is to claim an applicable exemption or limitation.

Wisconsin provides an Earnings Garnishment – Exemption Notice and Answer process. If you qualify for a complete exemption or a limitation on the amount that can be garnished, you can submit the required debtor's answer to your employer. The Wisconsin court form specifically explains that an answer can be filed when the debtor qualifies for these protections.

This can be particularly important for individuals whose household income is low enough to qualify for additional protection.

Asking the Court for Relief

In some circumstances, a debtor may be able to ask the court for relief from a garnishment.

Wisconsin law allows a court to consider whether the garnishment leaves the debtor without enough income to provide the necessities of life for the debtor or the debtor's dependents. The appropriate procedure depends on the circumstances and the type of garnishment involved.

If you believe the garnishment is creating a serious hardship, speaking with an attorney can help you determine whether requesting court relief is appropriate.

Negotiating With the Creditor

Another possible approach is negotiating directly with the creditor.

Depending on the circumstances, a creditor may agree to:

• Accept a lump-sum settlement.
• Establish a voluntary payment arrangement.
• Reduce the amount being collected.
• Release the wage garnishment after an agreement is reached.

Any agreement should be documented carefully. Consumers should not assume that making a payment automatically stops an existing garnishment.

Using Chapter 128 to Stop a Garnishment

For some Wisconsin residents, Chapter 128 debt amortization may be an option for dealing with overwhelming unsecured debt and wage garnishments.

Wisconsin Statute § 128.21 allows certain wage earners who are unable to meet their current debts but can make regular future payments to petition the circuit court for a debt amortization proceeding. The statute provides that, upon filing, the court can order proceedings to enforce existing executions, attachments, or garnishments to be stayed during the Chapter 128 proceeding.

Chapter 128 is different from bankruptcy. Rather than generally eliminating qualifying debt through a discharge, Chapter 128 provides a structured repayment process administered through a court-appointed trustee.

For someone with regular income who can afford a structured monthly payment, Chapter 128 may be worth considering as an alternative to dealing with individual creditors and garnishments separately.

What Happens to the Garnishment During Chapter 128?

Wisconsin law provides significant protection against collection activity for debts covered by a Chapter 128 proceeding.

After a qualifying Chapter 128 petition is filed, the statute generally prohibits creditors from levying or enforcing executions, attachments, or garnishments for claims that arose before the proceeding, subject to the statutory exceptions.

This is one reason Chapter 128 can be an important debt-relief option for Wisconsin consumers who are already experiencing wage garnishment.

Bankruptcy May Also Stop a Garnishment

Bankruptcy may provide another option for consumers facing wage garnishment.

Depending on the circumstances, filing bankruptcy can trigger the federal automatic stay, which generally stops many collection actions, including wage garnishments. Bankruptcy also has different eligibility requirements, consequences, and potential benefits than Chapter 128.

Because bankruptcy and Chapter 128 operate differently, consumers should evaluate both options before deciding how to address a garnishment.

What If the Garnishment Is Wrong?

A garnishment may need to be challenged if the creditor is attempting to collect an amount that is not actually owed or if the garnishment was not properly established.

Potential issues can include:

• The debt does not belong to you.
• The amount claimed is incorrect.
• The judgment was entered improperly.
• Payments were not credited.
• The creditor is attempting to collect an amount that has already been resolved.
• The garnishment exceeds the amount permitted by law.
• An applicable exemption has not been recognized.

If you believe something is wrong with your garnishment, do not assume that your employer or creditor will automatically correct the problem.

How a Consumer Protection Attorney Can Help

A Wisconsin consumer protection attorney can review your situation and help determine what options may be available.

An attorney may be able to:

• Review the judgment and garnishment paperwork.
• Determine whether the garnishment was properly established.
• Evaluate whether you qualify for an exemption.
• Challenge an improper garnishment.
• Negotiate with the creditor.
• Determine whether Chapter 128 may be appropriate.
• Evaluate whether bankruptcy should be considered.
• Represent you in court when necessary.

An attorney can also help determine whether the underlying debt collection involved violations of Wisconsin or federal consumer protection laws.

Act Quickly When Your Wages Are Being Garnished

Wage garnishment issues should not be ignored. Every paycheck affected by a garnishment can make it more difficult to maintain your household finances.

If you receive an earnings garnishment notice, carefully review the documents and determine:

• Who is garnishing your wages.
• How much is being withheld.
• What debt the garnishment relates to.
• Whether the amount appears accurate.
• Whether you qualify for an exemption or limitation.
• Whether Chapter 128 or another debt-relief option may be appropriate.

Taking action early may give you more options for addressing the problem.

Conclusion

A wage garnishment can put significant pressure on a Wisconsin household, but consumers may have several options for reducing or stopping the garnishment. Depending on your circumstances, you may be able to claim an exemption, request court relief, negotiate with the creditor, pursue Chapter 128 debt amortization, or consider bankruptcy.

Because the correct solution depends on the type of debt, your income, your household circumstances, and the history of the case, it is important to understand your legal options before deciding how to proceed.

If your wages are currently being garnished, a Wisconsin consumer protection or debt-relief attorney can review your circumstances and help you determine what options may be available.

Attorney Nathan DeLadurantey offers free consultations to explain your legal rights in Wisconsin. Free consultations can be scheduled online.