In the last post on this topic, we suggested that the judgment creditor first try asking the judgment debtor to pay the amount to satisfy the judgment. If getting the debtor to satisfy the judgment willingly is out of the question, it is time for the creditor to assess the debtor’s assets. In the best scenario, the creditor has some knowledge of the debtor’s assets and finances, even if only in a very general sense. For example, if the creditor knows the debtor is currently employed, then they can try to garnish the debtor’s wages.
Collecting on a Money Judgment: How Wage Garnishment Works
Once a creditor has obtained a money judgment, the next challenge is actually collecting on it. The simplest first step is to ask the debtor directly to satisfy the judgment voluntarily. But when that isn't a realistic option, it's time to assess what the debtor owns and earns — and pursue collection through legal means.
If the creditor knows the debtor is currently employed, wage garnishment is often the most straightforward collection tool available.
What Is Wage Garnishment?
Wage garnishment occurs when an employer is legally required to withhold a portion of an employee's earnings and redirect those funds toward satisfying a debt, pursuant to a court order or other legal procedure. In practical terms, it means the debtor's paycheck is reduced each pay period until the judgment is satisfied, without requiring any voluntary cooperation from the debtor themselves.
How Much Can Be Garnished?
There is no single fixed amount — the maximum is determined by a federal formula. Each week, the amount garnished may not exceed 25% of the debtor's disposable earnings for that week, or the amount by which the debtor's disposable earnings exceed thirty times the federal minimum hourly wage — whichever of those two figures is smaller. This formula is designed to ensure that garnishment doesn't leave the debtor without enough income to meet basic living expenses.
It's worth noting that exceptions to these limits exist in certain circumstances, such as when the debtor owes back taxes or child support, where higher garnishment percentages may apply.
What Counts as "Disposable Earnings"?
Disposable earnings are not simply the debtor's gross wages. They represent what remains after all legally required deductions have been taken out — including federal, state, and local taxes, Social Security contributions, and any mandatory retirement deductions. The garnishment calculation is applied to this net figure, not to the debtor's total compensation.
How Does the Process Work?
To initiate wage garnishment, the creditor must first file a Writ of Execution with the court where the judgment was entered. Once the Writ is issued, the creditor coordinates with the appropriate local authority — typically a sheriff's office or marshal — providing the necessary instructions and paperwork to have an Earnings Withholding Order served on the debtor's employer. The employer is then legally obligated to begin withholding the specified amount from the debtor's wages each pay period and remitting those funds accordingly.
Throughout this process, the creditor will incur filing fees at the court level and service fees charged by the enforcing authority. These costs are typically recoverable and can be added to the total judgment balance.
An Important Note on Conflicting Laws
Wage garnishment is governed by both federal law and the laws of the state where the debtor is employed. When state and federal rules differ — as they often do — the employer is required to follow whichever law results in the smaller garnishment. Creditors should be aware of the rules in the relevant jurisdiction before proceeding, as the recoverable amount may vary significantly depending on where the debtor works.
Be sure to check out the previous article in the Money Judgment Collection series here.
Griswold Receivers has been appointed by over 300 courts across the region and has a team of experts well versed on this topic. If you are seeking a post-judgment collection, contact us today.
