• April 19, 2018
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When a debtor is unable to pay the amount they owe, a court may order their employer to withhold a part of their wage and send it directly to the creditor until the debt is paid. When it comes to wage garnishment laws, the laws in Texas are different from most of the other states in the US. Texas imposes certain limitations on the creditors seeking debtor’s wage to settle their unpaid debts. In addition, there is a limit on the amount that can be withheld from a defaulting debtor’s wage. This post gives you an overview of wage garnishment laws in Texas.

Creditor’s Rights

Unlike most of the states in the US that allow all creditors to garnish their debtors’ wage, Texas awards the right to only a certain type of creditors. A creditor can garnish wages in Texas for unpaid income tax to the government, court-ordered child support and alimony, or unpaid/defaulted student loans. In such scenarios, a creditor can garnish the debtor’s wages even without a court order.

Termination of Employment

Though Federal law prohibits employers to terminate an employee based on a single garnishment, the law is not applicable for one- or two- garnishments for the same year. However, in the state of Texas, the Wage Garnishment Law is different. Employers in Texas cannot terminate, demote, or reprimand an employee, no matter the number of garnishment.

Garnishment Limitations

Federal law places a limit on the amount a creditor can garnish from a debtor’s paycheck, which varies depending upon the nature of debt and other dynamics. If a debtor has an unpaid federal student loan, the Department of Education can garnish 15 percent of their disposable income. In case of unpaid taxes, the government decides the wage garnishment depending upon the number of dependents the debtor has and the current deduction rate. The maximum wage garnishment allowed on a paycheck in a year is 50 percent of the disposable income.

The Bottom Line

If you are facing wage garnishment, consult a lawyer who can help you with the paperwork and resolve the issue. The attorneys at the Law Offices of Nick Nemeth, can help you release your wage garnishment or resolve any of your tax disputes with the IRS. To learn more about wage garnishment or other tax-related laws in Texas, speak with one of our tax lawyers at (972) 426-2553. Alternatively, fill out our contact form to schedule a no-obligation free consultation.

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What Our Clients Have to Say

Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah Howard
03:44 14 Nov 22
I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
00:33 07 Aug 22
I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.
Spoilly GirlSpoilly Girl
23:49 03 Aug 22
The Nemeth Law team is exceptional. They treat their clients like a family member who is in crisis. They want you to get the best possible outcome. I really appreciate everything that they did for me. Jake and Ashley had the greatest role in my case and it all turned out for the best for me. Thank you Nick and team for easing my fears and getting me through the long process. I'm truly grateful.
Eddie WaltEddie Walt
19:44 12 Jul 22
During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!
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