Wage garnishment can be a stressful and confusing experience. If you're a Wisconsin resident facing this situation, it's crucial to understand your rights and the legal protections in place. This blog post will break down the key aspects of wage garnishment laws in Wisconsin.

What is Wage Garnishment?

Wage garnishment is a legal process where a portion of your wages is withheld to satisfy a debt. This debt can stem from various sources, including unpaid taxes, child support, student loans, or court judgments.

Wisconsin's Wage Garnishment Limits:

Wisconsin law, in conjunction with federal regulations, sets limits on the amount that can be garnished from your wages. These limits are designed to protect a portion of your income for essential living expenses.

• Federal Law: The federal Consumer Credit Protection Act (CCPA) sets the maximum amount that can be garnished at the lesser of:
  • 25% of your disposable earnings (earnings after legally required deductions).
  • The amount by which your disposable earnings exceed 30 times the federal minimum wage.
• Wisconsin State Law: Wisconsin also has its own protections, and state law must follow the stricter of the state or federal law.
  • Wisconsin state law is generally very close to the federal law.
  • It is important to note that certain types of debt, like child support, have different garnishment rules.

Types of Debt and Garnishment:

• Child Support: Child support garnishment is subject to specific rules and often takes priority over other types of garnishment. The amount garnished can vary depending on the number of children and any existing support orders.
• Federal Student Loans: The U.S. Department of Education can garnish up to 15% of your disposable earnings to repay defaulted federal student loans.
• Taxes: The IRS and the Wisconsin Department of Revenue can garnish wages to collect unpaid taxes.
• Court Judgments: If a creditor obtains a court judgment against you, they can seek a garnishment order to collect the debt.
• Consumer Debt: Credit cards, medical bills, and other consumer debts can lead to garnishment if a creditor obtains a court judgment.

Key Protections and Rights:

• Notice: You have the right to receive proper notice of a garnishment order before it takes effect. This notice should include details about the debt, the amount to be garnished, and your rights.
• Exemptions: Certain types of income may be exempt from garnishment, such as Social Security benefits and specific public assistance payments.
• Challenging Garnishment: You have the right to challenge a garnishment order if you believe it's incorrect or unlawful. This may involve filing a legal motion with the court.
• Protection from Termination: Federal law prohibits employers from firing you due to a single garnishment. However, there is no federal protection if you have multiple garnishments. Wisconsin state law does not offer further protection in this regard.

What to Do if Your Wages Are Garnished:

1. Review the Garnishment Notice: Carefully examine the notice to understand the debt and the amount being garnished.
2. Contact the Creditor: If you believe the garnishment is incorrect, contact the creditor or their attorney to discuss the issue.
3. Seek Legal Advice: Consult with an attorney specializing in debt and garnishment to understand your rights and options.
4. Explore Debt Management Options: Consider debt management strategies, such as debt consolidation or Chapter 128, to address your overall debt situation.
5. Keep Records: Maintain accurate records of all garnishment-related documents and communications.

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