---

If you are reading this, you probably received a threat. Maybe it was a letter from a law firm, or a voicemail from a debt collector claiming they are going to call your boss and take your paycheck. But can a debt collector garnish wages in Texas?

In this article I will share my knowledge as a lender in Texas for the past 5 years who has looked into every avenue of collection you can legally use.

The fear is real. The idea of losing 25% of your income overnight is enough to keep anyone awake. But here is the good news: If you live in Texas, that debt collector is likely barking up the wrong tree.

Texas has some of the strongest debtor protections in the United States. Unlike other states where garnishment is standard practice, Texas considers your paycheck almost sacred. In Texas, wage garnishment is constitutionally prohibited for almost all debts

So, can a debt collector garnish wages in Texas? The short answer is no—at least, not for the debts that keep most people up at night. But there are four major exceptions you need to know, plus one massive loophole that catches people off guard.

Here is the 2026 guide to keeping your paycheck safe.

The General Rule: “Current Wages” Are Off Limits

Let’s answer the main question directly: Can a debt collector garnish wages in Texas for credit card debt, medical bills, or personal loans?

No.

The Texas Constitution (Article 16, Section 28) explicitly prohibits the garnishment of “current wages for personal service.” This means if you are a W-2 employee, a standard debt collector cannot get a court order to intercept your paycheck before it hits your hands.

It doesn’t matter if you owe $5,000 to Visa or $50,000 to a hospital. They can sue you, they can harass you, and they can ruin your credit score—but they generally cannot touch your wages.

The 4 Big Exceptions (Who CAN Garnish You)

While private companies (like banks and credit card issuers) are blocked, the government and family courts play by different rules.

There are only four types of debt that can legally result in wage garnishment in Texas:

1. Court-Ordered Child Support & Spousal Support: This is the most common form of garnishment. It happens automatically in many divorce cases.
2. Unpaid Taxes: The IRS does not need a court order to garnish your wages. They have their own administrative powers.
3. Defaulted Federal Student Loans: The Department of Education can garnish up to 15% of your disposable pay if you default on federal loans.
4. Court-Ordered Restitution: If you have been convicted of a crime and ordered to pay restitution to a victim.

If your debt isn’t on this list, your paycheck is likely safe.

The “Bank Levy” Loophole: How They Get You Anyway

Here is where the “Owner Class” mindset is critical. You need to understand the difference between “Current Wages” and “Cash.”

Texas law protects your paycheck while it is with your employer. But the second that money hits your bank account? It is no longer “wages.” It is just cash.

And cash is not protected.

If a creditor sues you and wins a judgment, they can’t garnish your wages, but they can get a “Writ of Garnishment“ for your bank account.

• The Scenario: You get paid on Friday. On Monday, the bank receives a court order. They freeze your entire account to pay the debt.
• The Result: You technically got your “wages,” but you still lost the money.

Pro Tip: If you are facing a lawsuit from a creditor, do not keep large sums of cash in a bank account that is easily found.

Are You an Employee or a Contractor? (It Matters)

This is a detail most blogs miss. The Texas protection applies to “Current Wages.” Courts have generally interpreted this to mean paychecks for employees (W-2).

If you are an Independent Contractor (1099), freelancer, or gig worker, your income might not be considered “wages.”

• Instead, it is considered “receivables” or “business income.”
• A savvy creditor can garnish the money your clients owe you before they pay you.

If you are self-employed, the “Texas Shield” might not protect you the same way it protects a teacher or a nurse.

What To Do If You Are Threatened

If a debt collector calls and says, “We are going to garnish your wages in Texas,” and the debt is for a credit card or medical bill, they might be breaking the law.

1. Know Your Rights: Under the FDCPA, collectors cannot threaten actions they cannot legally take. Threatening wage garnishment in Texas for consumer debt is often a violation.
2. Validate the Debt: Make them prove you owe the money.
3. Check Your Bank: If you think a lawsuit has already happened, ensure your bank account doesn’t have more cash than you can afford to lose (the “Bank Levy” risk).

Summary

• Can a debt collector garnish wages in Texas? Generally, No. Not for consumer debts like credit cards or HOA fees.
• Who can garnish? Child support, the IRS, and federal student loans.
• The Real Danger: Watch out for a Bank Levy, where they seize the money after it is deposited.

If you are dealing with credit cards or other types of debt obligations in another state like Florida or California, check out my other articles to see your next course of action.

Written by Hayden