Wage Garnishment Exemption Guide: Income You Can Keep
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Certain types of income are protected from wage garnishment under federal and state law. This exempt income includes Social Security, unemployment benefits, and other public benefits — and in many cases, you can stop or reduce garnishment by filing a claim of exemption. This guide explains how exemptions work, how to protect your income before or after garnishment starts, and what to do if the debt is owed to the IRS or Department of Education. It also covers how bankruptcy can stop garnishments and help erase the debt causing them.
Written by Mae Koppes. Legally reviewed by Attorney Andrea Wimmer
Updated September 16, 2025
Wage garnishment happens when money is taken directly from your paycheck or bank account to repay a debt. It’s a legal process that creditors use to collect unpaid bills, but not all income can be taken this way.
Federal and state laws protect certain types of income from garnishment. This is called exempt income, and it includes things like Social Security, unemployment benefits, and some retirement income.
In this guide, we’ll explain what kinds of income are protected, how to claim those exemptions, and what you can do if a garnishment has already started.
What Income Is Exempt From Wage Garnishment?
Not all income can be taken via wage garnishment or a bank levy.
Federal and state laws protect certain types of income, known as exempt income. If your money comes from one of these sources, you may be able to stop the garnishment or get the funds returned.
There are two main categories of exemptions:
Federal exemptions for federal benefits
State exemptions for state benefits
💡 Federal law also protects low-income earners. If your weekly disposable earnings are less than $217.50, your paycheck can’t be garnished. Disposable earnings are the funds you have left after taxes and other mandatory deductions like income taxes, Social Security, and Medicare.
Some states have even more generous income protections.
Federal Exemptions
Some income is protected under federal law, no matter where you live. This includes money from:
Social Security
Supplemental Security Income (SSI)
Veterans benefits
Federal employee or military retirement
Federal disability or survivor benefits
Railroad retirement benefits
These funds are generally safe from garnishment unless the debt is for something like unpaid federal taxes, child support, or federal student loans.
State Exemptions
Many states also protect certain types of income from garnishment. Each state has its own laws, but here are some commonly exempt forms of income:
Unemployment benefits
Workers’ compensation
Public assistance, like TANF or food stamps
Pensions or retirement income
Life insurance payouts
Child support or spousal support you receive
You’ll need to check your specific state’s exemption laws to know exactly what’s protected.
How To Protect Exempt Wages From Being Garnished
If your wages are at risk of being garnished, it’s important to know that some income is protected by law, even if a creditor sues you. You may have the chance to protect that income, either during the lawsuit or after you’ve received a garnishment notice.
During the Lawsuit
If you’ve been sued but the court hasn’t entered a judgment yet, you can respond to the lawsuit and tell the court that your income is exempt. If all of your income comes from protected sources like Social Security or unemployment benefits, you may be able to stop the case from moving forward by showing that your wages legally can’t be garnished.
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After a Garnishment Order
If you’ve already received a wage garnishment order, it’s not too late to respond. You may still be able to stop or reduce the garnishment by filing a claim of exemption with the court.
This tells the court, the creditor, and your employer (or bank) that some or all of the money they’re trying to take is legally off limits.
Here’s how the process usually works:
Review the garnishment notice carefully. It should list who’s trying to collect, how much they claim you owe, and what court issued the order.
Check if your income is exempt. Compare your income sources to the list of protected income types in the previous section and research your state’s laws. If all or part of your income is exempt, you have the right to challenge the garnishment.
Get the exemption form from the court. This is often called a Claim of Exemption or Exemption Claim Form. You can usually find it on the court’s website or by calling the clerk’s office.
Fill out the form and gather proof. You’ll need to list your income sources and show proof like benefit award letters, pay stubs, or bank statements showing the deposit source.
File the form with the court. Submit the completed form to the same court that issued the garnishment order. There may be a short deadline — sometimes just 5–10 days after you receive notice.
Send copies to the creditor and the levying officer. Depending on your state, you may need to send a copy of the exemption claim to the creditor and the officer handling the garnishment (often the sheriff or marshal).
Attend a hearing, if scheduled. The court may set a hearing to review your exemption claim. Be prepared to explain where your income comes from and why it should be protected.
If the court agrees that some or all of your income is exempt, it will limit or stop the garnishment.
When You Can’t Use a Claim of Exemption
There are some important exceptions to the rules about exempt income.
🛑 If you owe money to the IRS or the U.S. Department of Education, you usually can’t use a Claim of Exemption to stop garnishment — even if your income would normally be protected.
For example, the IRS can garnish your wages or take money from your bank account to collect unpaid taxes. They can also take a portion of certain federal benefits, including Social Security.
🎓 The Department of Education can do the same if you’re behind on federal student loan payments. These agencies don’t need to sue you or get a court judgment first. Once they send you a notice and give you a chance to respond, they can ask your employer to start taking money from your paycheck, or freeze your bank account, to collect the debt.
How To Avoid Wage Garnishment
If you're behind on debt payments but haven't been hit with a wage garnishment yet, there’s still time to act. Here are a few ways many people avoid garnishment and take back control:
Work out a payment plan.
Talk to a legal aid organization.
Consider bankruptcy.
Work Out a Payment Plan
Reaching out to your creditors directly — or working with a nonprofit credit counseling agency — may help you set up a payment plan that avoids court action and garnishment.
Talk to Legal Aid
If you’ve received a court summons or think a creditor might sue you, getting legal help early can make a big difference. Legal aid organizations help low-income people with civil legal issues, including lawsuits. A legal aid lawyer may be able to help you respond to the case, raise exemptions, or challenge the lawsuit altogether.
File Bankruptcy
Bankruptcy is one of the most effective tools for stopping debt collection and avoiding wage garnishment. Filing for Chapter 7 bankruptcy can erase many common types of debt — like credit card balances, medical bills, and personal loans — and protect exempt income like Social Security or unemployment benefits. It also stops most garnishments from starting in the first place.
Upsolve has a free Chapter 7 filing tool. You can see if you’re eligible to use our tool in just two minutes. We’ve helped over 18,000 people get rid of $840,000 in debt.
