Wage Garnishment Laws in Wisconsin: Know Your Rights & Limits

Wisconsin law generally allows creditors to take up to 20% of your take-home pay after required deductions. If your household earns very little, you may be able to keep more of your pay.

If creditors are taking money from your paycheck, you may be able to ask for a lower amount or work out a payment plan. A Wisconsin bankruptcy lawyer can explain how bankruptcy may help stop wage garnishment and what you can do next.

This guide explains how wage garnishment works in Wisconsin, how much creditors can take, and how you can protect your pay.

What Is Wage Garnishment in Wisconsin?

Wage garnishment is when a creditor takes money from your paycheck to pay a debt you owe. For most debts, such as credit card bills or medical bills, the creditor must sue you and win the case first. Then, the creditor can ask for money to be taken from your pay.

Your employer must take out the amount the law allows. Child support and some tax debts follow different rules.

How Does Wage Garnishment Work?

Wage garnishment usually works in these steps:

1. The creditor wins in court. The creditor sues you over the debt and wins the case.
2. The creditor starts garnishment. The creditor files the required papers and sends them to the right people.
3. You get a notice. The notice explains the garnishment and your rights.
4. Your employer takes money from your pay. The employer withholds the amount allowed by law.
5. The garnishment ends or changes. This may happen when the garnishment period ends, you pay the debt, or the court changes the order.

Under Wisconsin Statute § 812.35, an ordinary wage garnishment generally covers pay periods that start within 13 weeks. If you still owe money, the creditor may be able to start another garnishment.

How Much Can a Creditor Take From Your Paycheck?

Under Wisconsin Statute § 812.34, a creditor can usually take up to 20% of your disposable earnings to pay an ordinary debt. Disposable earnings are the money left from your pay after required deductions, such as certain taxes. Federal law also limits how much a creditor can take.

For most ordinary debts, the limit is the lower of these two amounts:

• 25% of your weekly disposable earnings.
• The amount your weekly disposable earnings exceed 30 times the federal minimum hourly wage.

The limit that applies to your case depends on the law and your earnings.

Example of the 20% Limit

These examples do not include extra protections that may lower the amount taken. Child support, taxes, and some court-ordered debts follow different rules.

Wisconsin Wage Garnishment Exemptions

Wisconsin law protects some workers from losing part of their pay.

Under Wisconsin Statute § 812.34, your pay may be fully protected from ordinary garnishment if:

• Your household income is below the poverty limit.
• You receive certain public benefits because of your low income.
• You received these benefits within the past six months.
• You have been approved for these benefits but have not received them yet.

You may also qualify for a lower deduction if taking 20% of your pay would leave your household below the poverty limit.

You can find Wisconsin wage garnishment forms and poverty guidelines here.

How to Challenge a Wage Garnishment

You may be able to challenge a garnishment if the amount is wrong or the law protects your income.

Here is what you can do:

1. Check the notice. Look at the creditor’s name and the amount they say you owe.
2. Check if you qualify for protection. Your income may be low enough to qualify for an exemption.
3. Fill out the right form. Complete Wisconsin’s Earnings Garnishment – Debtor’s Answer (Form CV-424).
4. Send the form as directed. Follow the instructions on the form.
5. Keep copies. Save the form and any papers that support your claim.

Under Wisconsin Statute § 812.37, eligible debtors can file an answer or updated answer before or during the garnishment period. If the creditor disagrees with your answer, the court may hold a hearing to decide the issue.

Can You Reduce Garnishment Because of Financial Hardship?

Yes. You can ask the court for help if wage garnishment leaves you without enough money for basic needs.

Under Wisconsin Statute § 812.38, you may ask the court to lower or stop the garnishment if you cannot afford your basic expenses.

Explain your financial situation and include proof of your costs. This may include rent, utility bills, medical bills, and expenses for your children or other dependents. The court will review your request and decide whether to help.

Can Bankruptcy Stop Wage Garnishment?

Filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy usually triggers an automatic stay under 11 U.S.C. § 362. This can stop many collection actions, including wage garnishment for ordinary debts.

Some debts follow different rules. For example, child support and certain tax collections may continue.

You may also be able to get back wages taken in violation of the automatic stay. This depends on the facts and the law. Learn more about stopping wage garnishments and repossessions.

Other Ways to Stop or Reduce Garnishment

Bankruptcy is not your only option. You may be able to:

• Set up a payment plan with the creditor.
• Ask for a lower garnishment amount.
• Challenge an incorrect judgment or garnishment.
• Request court help due to financial hardship.
• Pay off or settle the debt.

Do not ignore court papers. Contacting a creditor does not automatically stop garnishment, so make sure you know what action is needed.

Frequently Asked Questions

How long does wage garnishment last in Wisconsin?

A standard wage garnishment covers 13 pay periods. The creditor may file for another garnishment to collect the remaining debt.

Can payday loan companies garnish wages in Wisconsin?

No. Wisconsin law prohibits wage garnishment for certain payday loan debts. See Wisconsin Statute § 812.35.

Can your employer fire you because of a wage garnishment?

Federal law bars employers from firing workers because their wages are garnished for one debt.

Are Social Security and unemployment benefits protected?

Federal and state laws protect these benefits from many creditors. Exceptions include certain child support and tax debts.

Can I get back wages taken after filing bankruptcy?

You may be able to recover wages taken in violation of the automatic stay. The outcome depends on your case.

Get Help With Wage Garnishment in Wisconsin

Wage garnishment can leave you struggling to pay for food, rent, transportation, and other basic needs. Debt Advisors Law Offices helps Wisconsin residents understand their rights and explore debt relief options, including bankruptcy.

If your wages are being garnished, schedule a free consultation to discuss your options.

Debt Advisors Law Offices is a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.