Texas is one of a small number of states that shields wages from most creditors. A money judgment from a Texas justice court small claims case does not let the winning party garnish the loser’s paycheck for a debt like an unpaid loan or a consumer bill. This article explains the constitutional rule, the narrow exceptions that do allow withholding, what happens to wages once they reach a bank account, and the collection methods creditors use in place of garnishment.
The constitutional rule on wage garnishment
Texas protects wages at the constitutional level. Under Tex. Const. art. XVI, § 28, no current wages for personal service can ever be subject to garnishment, except to enforce court-ordered child support or spousal maintenance. That single sentence is why a credit card company, a hospital, a landlord, or a small claims plaintiff with a money judgment cannot order a Texas employer to deduct payments from an employee’s paycheck.
The statutes reinforce the constitution. Tex. Prop. Code § 42.001(b)(1) lists current wages for personal services as personal property exempt from seizure, again with an exception for court-ordered child support. The protection covers earned wages that have not yet been paid: the money an employer is holding and owes to the worker.
Exceptions that allow withholding from pay
A handful of obligations override the wage protection. Each is narrow and rooted either in the Texas Constitution itself or in federal law that preempts state exemptions.
Court-ordered child support is the primary exception written into the constitution. Income withholding for support runs through Tex. Fam. Code ch. 158. An order or writ of withholding directs the employer to withhold the ordered amount, up to a maximum of 50 percent of the obligor’s disposable earnings under Tex. Fam. Code § 158.009. Court-ordered spousal maintenance is the second exception named in the constitution, and it is withheld through the same mechanism.
Federal law reaches Texas wages despite the state exemption. Defaulted federal student loans can be collected by administrative wage garnishment of up to 15 percent of disposable pay under 20 U.S.C. § 1095a. The IRS can levy wages for unpaid federal taxes; the agency runs a continuous wage levy that stays in effect until the tax is paid or the levy is released. Federal court-ordered criminal restitution can also reach wages.
Deposited wages and bank account garnishment
The constitutional shield protects wages as wages. Once an employer pays the money and it lands in a bank account, Texas courts have generally treated it as funds in an account rather than current wages for personal service. At that point the constitutional garnishment bar no longer fits, and the deposited money can be exposed to a different tool: garnishment of the bank account.
Bank account garnishment runs through Tex. Civ. Prac. & Rem. Code § 63.001. A writ of garnishment is available to a plaintiff holding a valid, subsisting judgment who files an affidavit stating that the debtor does not possess enough property in Texas subject to execution to satisfy the judgment. The writ is served on the garnishee, typically the debtor’s bank, which then freezes funds in the account up to the judgment amount.
How creditors collect a Texas judgment instead
Because paychecks are off-limits for ordinary debts, judgment collection in Texas focuses on property and accounts. Three tools do most of the work.
A creditor can record an abstract of judgment in the county land records, which creates a judgment lien against the debtor’s non-exempt real estate in that county. The lien does not produce immediate cash, but it attaches to the property and generally must be paid when the property is sold or refinanced.
A creditor can also ask the court for a writ of execution to seize non-exempt property. A constable or sheriff then levies on non-exempt assets and sells them to satisfy the judgment. Texas exempts a large amount of personal property from execution, up to $100,000 in aggregate value for a family or $50,000 for a single adult under Tex. Prop. Code § 42.001(a), so execution reaches only what falls outside those limits.
Bank account garnishment, described above, is the third route. Together these methods, not wage garnishment, are how a Texas money judgment turns into payment.
Confirm the judgment is final
Collection tools require a final, enforceable judgment. A creditor confirms the judgment is signed and that the deadlines to appeal or move for a new trial have passed before pursuing the debtor’s assets.
Locate non-exempt assets
The creditor identifies property that falls outside Texas exemptions, such as non-exempt real estate, a bank account, or business assets. Post-judgment discovery can be used to find them.
Use the tool that fits the asset
An abstract of judgment creates a lien on real estate, a writ of execution levies on non-exempt personal property, and a writ of garnishment reaches a bank account. The creditor selects the remedy that matches the asset.
Frequently asked questions
Can a credit card company garnish wages in Texas?
No. A credit card issuer collecting a consumer debt is an ordinary creditor, and Tex. Const. art. XVI, § 28 bars garnishment of current wages for personal service except for court-ordered child support and spousal maintenance. A credit card company that wins a judgment can pursue non-exempt property and bank accounts, but not the debtor’s paycheck.
Can wages be garnished in Texas for child support?
Yes. Child support is the main exception built into the constitution. Income withholding under Tex. Fam. Code ch. 158 directs the employer to withhold the ordered support, capped at 50 percent of disposable earnings.
Does the protection apply after wages are deposited in a bank account?
The broad constitutional protection applies to wages an employer has not yet paid. Once wages are deposited, Texas courts have generally treated the funds as an account balance rather than current wages, and a creditor with a judgment may reach the account through a writ of garnishment under Tex. Civ. Prac. & Rem. Code § 63.001.
Can the IRS or a student loan take wages in Texas?
Yes. Federal law preempts the Texas exemption. The IRS can levy wages for unpaid federal taxes, and a defaulted federal student loan can be garnished administratively at up to 15 percent of disposable pay under 20 U.S.C. § 1095a.
What types of income are not protected as wages?
The exemption covers current wages for personal service, meaning pay owed to an employee. Income that is not employee wages, such as some independent-contractor payments treated as accounts receivable, can fall outside the protection. The exact treatment depends on how the income is characterized.
Sources
- Tex. Const. art. XVI, § 28 (Garnishment of Wages)
- Tex. Prop. Code § 42.001 (Personal Property Exemption)
- Tex. Civ. Prac. & Rem. Code ch. 63 (Garnishment)
- Tex. Fam. Code ch. 158 (Withholding from Earnings for Child Support)
- 20 U.S.C. § 1095a (Wage garnishment requirement)
- IRS: Information about wage levies