Wage Garnishment in Wisconsin

What Is Wage Garnishment?

Wage garnishment means money is taken directly from your paycheck to pay off a debt. This usually happens after a creditor sues you in court and wins a court order called a judgment. Once that happens, they can ask the court to order your employer to withhold part of your wages. That money goes straight to the creditor until the debt is paid off.

Each state has rules that limit how much of your paycheck can be garnished. You're allowed to keep a certain amount of your income to cover basic living expenses. We cover state and federal limits below.

Also, some types of income — like Social Security or certain government benefits — are usually protected or exempt from garnishment.

Who Can Garnish My Wages in Wisconsin?

In Wisconsin, most wage garnishments come from consumer creditors. These are lenders or companies you owe money to for things like credit cards, medical bills, personal loans, and car loans. Debt collectors and debt buyers also fall into this category.

Before these creditors can garnish your wages, they must sue you in court and win a judgment. Only then can they start taking money directly from your paycheck.

Some creditors, however, don’t need a court judgment to garnish your wages. These include:

• The IRS or the Wisconsin Department of Revenue for unpaid taxes

• Agencies collecting child support or alimony

• Collectors for federal student loans

Each of these creditors follows different rules for how much they can take from your paycheck. This article focuses on court-ordered wage garnishments from consumer debts, which follow a specific legal process in Wisconsin.

What's the Wage Garnishment Process in Wisconsin?

Here’s a basic overview of how wage garnishment usually works in Wisconsin for consumer debts:

1. A creditor sues you for unpaid debt.

2. You have a deadline to respond to the lawsuit.

3. If the creditor wins, the court enters a judgment.

4. The creditor gets a wage garnishment order, and you and your employer are served with garnishment documents.

5. You can respond with objections or exemptions. (The court may hold a hearing if there’s a dispute.)

Let’s break down each of these steps in more detail.

A Creditor Sues You for Unpaid Debt

The process starts when a creditor files a lawsuit against you. This is often for unpaid credit cards, medical bills, personal loans, or other consumer debts.

A sheriff’s deputy or a private process server will deliver (or “serve”) the lawsuit papers to you. These documents include a summons and a complaint that explain the lawsuit and what the creditor is asking the court to do.

You Have a Deadline To Respond

You’ll need to respond to the lawsuit, either by filing an answer with the court or appearing on the listed date—depending on the court handling the case:

• In Wisconsin circuit court, you usually have 20 days to file your answer.

• In small claims court, your summons will list either a court date or the deadline to submit your answer.

If you don’t respond in time or miss the court date, the creditor can ask for a default judgment. This means the court automatically rules in their favor, and you lose the case.

If you're worried about responding on your own, but you can't afford a lawyer, you can draft an answer letter for a small fee using SoloSuit. They've helped over 300,000 people respond to debt lawsuits, and they have a 100% money-back guarantee.

SoloSuit is an affiliate partner, which means Upsolve may earn a small commission if you choose to use their paid service. This helps keep our services free.

The Court Enters a Judgment

If the court rules in the creditor’s favor, either by default or after a hearing, the creditor is awarded a judgment.

At this point, they’re called the judgment creditor, and you're the judgment debtor (though we’ll avoid using that term from here on out).

A judgment gives the creditor legal power to start collecting on the debt, including through wage garnishment.

The Creditor Gets a Wage Garnishment Order

To start garnishing your wages, the creditor must go back to the court to request a separate garnishment order. Once they have that order, they serve it on your employer, who is referred to as the garnishee. You’ll also receive a copy of the order and other required forms.

After being served, your employer is legally required to start withholding a portion of your wages and sending it to the creditor.

You and Your Employer Are Served With Garnishment Documents

Wisconsin law requires the creditor to serve you with several documents after your employer receives the garnishment order. These include:

• The notice of garnishment

• An exemption notice

• A blank answer form

• An exemption worksheet

• The most recent poverty guidelines for Wisconsin

These documents must be served within seven business days after your employer is served and at least three business days before the first payday affected by the garnishment.

You Can Respond With Objections or Exemptions

You have the right to respond to the garnishment if you believe it’s wrong or if you qualify for an exemption. You can fill out the answer form and return it to the court. You might object to the garnishment amount or claim that your income or financial situation makes you exempt.

Some common reasons people file objections include:

• Their income is below the federal poverty line

• They’ve received needs-based public assistance in the past six months

You’ll need to submit a completed Exemption Worksheet to back up your claim. If you forget to include something in your original answer, you can file an amended answer later.

The Court May Hold a Hearing if There’s a Dispute

If the creditor disagrees with your objection or exemption claim, they can request a court hearing. If that happens, you’ll have the chance to explain your situation to the judge. The judge will then decide whether to allow the garnishment to continue, reduce the amount, or stop it altogether.

How Long Do Garnishment Orders Last in Wisconsin?

Wage garnishments in Wisconsin expire after 13 weeks but can be renewed if you agree to the renewal.

Why would anyone agree to be garnished? If you don’t agree, the judgment creditor has to start over with the garnishment proceedings. This is expensive, and the court allows the creditor to pass this cost on to you, so it’s usually best to agree with the extension. 

How Much of My Paycheck Can Be Taken by Wage Garnishment?

In Wisconsin, the total amount a creditor can garnish can’t be more than the amount of the judgment, which may include the original past-due debt plus any fees, costs, or interest.

On a weekly basis, the judgment creditor can take the lesser of the following:

• 20% of your weekly disposable earnings, or 

• Your weekly disposable income minus 30 times the federal minimum wage. The current minimum wage is $7.25/hour, and 30 times that is $217.50. 

If you make $217.50 a week or less, your wages can’t be garnished.

Keep in mind: This formula is just for consumer debts. There are different rules for child support and alimony well as certain other kinds of debt like government tax or student loan debt.

Wisconsin Wage Garnishment Laws and Limits

Wisconsin provides more protections than most other states for low-income individuals facing wage garnishment. in Wisconsin:

• If your household income is below federal poverty guidelines your wages can't be garnished. This is a special state exemption.

• If you’ve been on means-tested public assistance at any time during the past six months, creditors can’t garnish your wages.

  • These are programs such as SNAP (formerly known as food stamps) and Supplemental Security Income (SSI) where proof of income is required for eligibility.

• Payday lenders can't garnish your wages.

How To Stop a Garnishment in Wisconsin

If your wages are being garnished, here are a few ways to stop it:

• Pay off the debt in full (though this isn't realistic for most people)

• Challenge the garnishment by claiming an exemption or filing an objection

• File for bankruptcy to stop the garnishment and possibly eliminate the debt

How Bankruptcy Can Stop a Garnishment

For people facing multiple debts or ongoing financial hardship, Chapter 7 bankruptcy may be the most effective way to stop a garnishment and get long-term debt relief.

When you file for bankruptcy, something called the automatic stay goes into effect right away. This immediately stops most collection actions, including wage garnishments. The creditor must pause the garnishment after you file Chapter 7, even if your employer has already started taking money from your paycheck.

In many cases, the debt that led to the garnishment can be wiped out in a Chapter 7 bankruptcy. That means you’re no longer legally responsible for paying it.

If your case is fairly simple, you may be able to file Chapter 7 without an attorney using Upsolve’s free filing tool. If your case is more complex, or you’re considering Chapter 13 instead, Upsolve can connect you with a trusted bankruptcy attorney for a free consultation.

Bankruptcy isn’t the right choice for everyone, but for many people, it offers a fresh start and stops garnishments for good.

Are There Any Resources for People Facing Wage Garnishment in Wisconsin?

Legal aid organizations such as Legal Action of Wisconsin provide free legal assistance for lower-income Wisconsinites. These organizations help with civil (non-criminal) legal matters such as evictions, family law, garnishments, and bankruptcies. You can also visit:

• The Wisconsin State Law Library, which provides an extensive list of free legal resources for Wisconsinites.

• Wisconsin Free Legal Answers, which allows you to ask legal questions to attorneys for free.

• The Legal Aid Society of Wisconsin, which can help with filing bankruptcy to stop wage garnishment.

• The American Bar Association, which provides information on free legal help.