Garnishing Wages for Medical Bills, Credit Cards, or Court Judgments: Know Your Rights
Wage garnishment can be one of the most stressful consequences of falling behind on debt. For many Californians, it feels sudden and overwhelming to see a portion of their paycheck withheld, especially when they are already struggling with rising living costs. Whether the debt comes from unpaid medical bills, credit cards, or a court judgment, wage garnishment does not affect everyone the same way.
California law provides important protections, and in some cases, bankruptcy can stop garnishment altogether. Understanding how garnishment works and what rights you have is the first step toward regaining control. A Los Angeles wage garnishment lawyer can help you understand your options and determine the most effective way to protect your income.
What Wage Garnishment Means in California
Wage garnishment occurs when a creditor obtains a court order requiring your employer to withhold part of your earnings and send it directly to the creditor. In California, most private creditors must first sue you and obtain a judgment before they can garnish wages. Once a garnishment order is in place, your employer is legally required to comply.
California law limits how much of your paycheck can be garnished, but even a partial reduction can create financial strain. For workers who rely on every dollar to cover rent, utilities, and transportation, wage garnishment can disrupt basic stability.
Garnishment for Medical Bills
Medical debt is one of the most common reasons people face wage garnishment. Hospital stays, emergency treatment, and unexpected procedures can result in large bills that quickly become unmanageable. Medical providers or collection agencies may pursue legal action if accounts remain unpaid.
In California, medical debt is treated as unsecured debt. This means creditors must obtain a court judgment before garnishing wages. While medical providers cannot garnish wages automatically, once a judgment is entered, they can seek a garnishment order like other unsecured creditors.
Many people are surprised to learn that medical debt is often dischargeable in bankruptcy. Filing for bankruptcy can stop ongoing wage garnishment through the automatic stay and, in many cases, eliminate the underlying debt entirely.
Credit Card Debt and Wage Garnishment
Credit card debt is another frequent cause of wage garnishment. Like medical bills, credit card debt is unsecured, and creditors must first sue and win a judgment before garnishing wages. Credit card companies and collection agencies often pursue garnishment when other collection efforts fail.
Once a garnishment begins, a portion of your disposable earnings may be withheld each pay period. California limits the amount that can be garnished, but the impact can still be significant, especially for households already dealing with high housing and transportation costs.
Bankruptcy protection can be especially effective for credit card garnishment. Both Chapter 7 and Chapter 13 bankruptcy can stop garnishment immediately and provide a structured path toward resolving the debt.
Garnishment Based on Court Judgments
Court judgments can arise from many types of debt, including personal loans, old accounts, and unpaid obligations that have been sold to collection agencies. Once a judgment is entered, creditors have powerful collection tools available to them, including wage garnishment and bank levies.
Judgment creditors may renew judgments and continue collection efforts for years. Without intervention, wage garnishment can persist long-term. California law does provide exemptions, but asserting those rights often requires prompt action and accurate documentation.
California Limits and Exemptions for Wage Garnishment
California law places limits on how much of your earnings can be garnished. Generally, creditors may garnish the lesser of 25 percent of your disposable earnings or the amount by which your weekly earnings exceed a protected threshold based on the minimum wage. These protections are designed to ensure that workers retain enough income to meet basic living expenses.
Certain types of income are protected from garnishment, including portions of wages needed for support. If garnishment causes financial hardship, you may be able to file a claim of exemption with the court to reduce or stop the garnishment. This process requires careful completion of forms and supporting documentation.
Understanding and asserting these exemptions is critical. Many people miss deadlines or submit incomplete information, allowing garnishment to continue even when relief may be available.
How Bankruptcy Can Stop Wage Garnishment
One of the most powerful tools for stopping wage garnishment is bankruptcy. When you file for bankruptcy, an automatic stay goes into effect immediately. This stay prohibits most creditors from continuing collection efforts, including wage garnishment.
In Chapter 7 bankruptcy, unsecured debts such as medical bills and credit cards are often discharged, permanently eliminating the debt and ending garnishment. In Chapter 13 bankruptcy, garnishment stops while you repay debts through a court-approved plan over time. Chapter 13 can be especially helpful for individuals who are behind on obligations but have regular income.
Bankruptcy is not the right solution for everyone, but for many Californians facing ongoing garnishment, it provides relief and a chance to stabilize finances.
Why Wage Garnishment Affects People Differently
Wage garnishment does not affect all workers the same way. The impact depends on income level, household size, type of debt, and available exemptions. For someone earning close to the minimum wage, even a small garnishment can make it difficult to cover rent or groceries. For others, garnishment may limit the ability to save or pay other essential bills.
California’s high cost of living makes wage garnishment particularly challenging. Understanding how state protections apply to your specific situation can make a meaningful difference in how much income you can keep.
Contact Wadhwani & Shanfeld
If your wages are being garnished or you are worried that garnishment may begin, the right guidance can help you protect your income and plan your next steps. At Wadhwani & Shanfeld, our experienced Los Angeles wage garnishment lawyers are dedicated to helping clients understand their rights under California law and explore solutions such as exemptions and bankruptcy protection.
Contact our firm today to schedule a consultation and take the first step toward financial stability.
Sources:
- California Legislative Information – Code of Civil Procedure § 706.050 (Limits on Wage Garnishment)
- California Legislative Information – Code of Civil Procedure § 706.010 (Earnings Subject to Garnishment)
- S. Courts – Bankruptcy Basics
- California Courts – Wage Garnishment Overview
