Can a Creditor Garnish My Wages after 7 Years?

Can a Creditor Garnish My Wages after 7 Years?

Wage garnishment occurs when a portion of your earnings or bank balance pays off a debt.

A court orders your employer to withhold from your paycheck and send it to the creditor until the debt is settled.

Common reasons include child support, consumer debts, and student loans.

Legal protections, such as deduction limits, exist, and you can take steps to mitigate their impact and aid financial recovery.

An image illustration of whether A Creditor can Garnish My Wages after 7 Years
Can a Creditor Garnish my Wages after 7 Years
Source: (Freepik)

Types of Wage Garnishment and How It Happens

There are two main forms:

  1. Wage garnishment involves creditors legally compelling your employer to withhold a portion of your earnings to settle your debts.
  2. Nonwage garnishment, often known as a bank levy, allows creditors to access funds directly from your bank account.

It usually happens when a creditor sues you for unpaid debts and wins in court.

But in some cases, like overdue child support or unpaid taxes, it can occur without a court order.

Once the court notifies you and the relevant parties, garnishment typically begins within 5 to 30 business days and continues until the debt, including fees and interest, is settled.

How much can creditors garnish from your wages?

Here’s an overview of the federal limits on how much of your disposable income a creditor can take.

Type of Debt Percent of Weekly Disposable Income
Credit cards, medical bills, personal loans, and most other consumer debts Either 25% or the amount exceeding 30 times the federal minimum wage (currently $7.25/hr), whichever is less.
– If weekly disposable income is $290 or more, a maximum of 25% is taken.
– If between $289.99 and $217.51, the amount above $217.51 can be taken.
– If $217.50 or lower, garnishment is not allowed.
Child support and alimony Up to 50% if supporting another child or spouse; otherwise, up to 60%.If payments are more than 12 weeks late, creditors may take an additional 5%.
Federal student loans Up to 15%.
Taxes Determined by the Internal Revenue Service based on standard deductions and the number of dependents.

What to do when you get a garnishment judgment

Upon receiving a garnishment judgment, start by thoroughly reviewing its accuracy and assessing its impact on your finances.

Consider seeking legal advice to explore your options, which include;

Negotiating with creditors, challenging the judgment in court if there are grounds to do so, or accepting the garnishment and arranging payment.

Communicate transparently with your employer about the situation to minimize workplace stress.

What you can do about wage garnishment

  1. Ensure you receive legal notification of the garnishment.
  2. If the notice contains errors or you dispute the debt, you can file a dispute.
  3. Certain types of income, like Social Security, Supplemental Security Income, and veterans’ benefits, are typically exempt from garnishment, though they may be subject to seizure once deposited into your bank account.
  4. While one wage garnishment typically won’t lead to termination, having multiple garnishments may void this protection.
  5. If you believe the garnishment is unjust or causing significant financial harm, you can contest it.
An image illustration of A Creditor Garnishing my Wages after 7 Years
A Creditor Garnishing My Wages after 7 Years
Source: (Freepik)

What happens after 7 years of not paying debt?

Credit reporting agencies typically remove the debt from your credit report.

However, note that in certain states, the statute of limitations may extend beyond this period.

Although the unpaid debt will still appear on your credit report, its negative effects on your score will diminish over time.

While the debt doesn’t disappear entirely, its impact on your credit score diminishes after the seven-year mark.


whether a creditor can garnish your wages after seven years depends on various factors, including the statute of limitations in your state and the specific circumstances of the debt.

While the debt may still be legally valid beyond the seven-year mark, it’s essential to understand your rights and consult legal experts to determine the best course of action.

You can always stay informed about your financial responsibilities and rights to effectively navigate potential wage garnishment situations.


What is Minimum Wage in Arkansas?

Leave a Comment