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Story perspectives

Employers Required to Garnish 25% of Debtor's Income

4/1/2026

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Story summary
  • After a judgment is issued, employers must withhold up to 25% of the debtor's disposable income.
  • Failing to respond forfeits the right to dispute the garnishment and may trigger further actions, such as bank levies.
  • Elevated borrowing costs and inflation push many to rely on credit cards, increasing debt if garnishments remain unpaid.
  • Options such as debt settlement, debt management plans, or bankruptcy can help regain control, and prompt action limits impact.