Under Tennessee wage garnishment laws, a creditor with a court judgment against you can take the lesser of 25% of your disposable earnings for the week or the amount by which those earnings exceed $217.50 — the equivalent of 30 times the $7.25 federal minimum wage.1Justia. Tennessee Code 26-2-106 – Maximum Amount of Disposable Earnings Subject to Garnishment – Garnishment Costs2U.S. Department of Labor. Minimum Wage Child support, back taxes, and defaulted federal student loans follow separate rules with higher ceilings, and several categories of income — Social Security, veterans’ benefits, unemployment, disability — are off-limits entirely. What follows walks through how the math actually works, what income you can protect, and how to push back when a garnishment reaches too far.
The 25% Cap and the $217.50 Floor
Tennessee tracks the federal Consumer Credit Protection Act on the basic garnishment ceiling. Every workweek, a creditor collecting on a consumer judgment can take whichever of these two figures is smaller: 25% of your disposable earnings, or the amount by which those earnings exceed $217.50.1Justia. Tennessee Code 26-2-106 – Maximum Amount of Disposable Earnings Subject to Garnishment – Garnishment Costs The “lesser of” language does real work for lower earners. If your disposable pay for the week is $217.50 or less, the creditor takes nothing.
A few examples show how it plays out:
- Earn $217.50 or less in disposable pay for the week and the wages are fully protected.
- Earn $250 and the 25% figure ($62.50) is bigger than the excess-over-$217.50 figure ($32.50), so the creditor takes $32.50.
- Earn $600 and 25% ($150) is smaller than the excess figure ($382.50), so the creditor takes $150.
At most middle-income wage levels, the 25% cap is the number that controls. The minimum-wage floor mainly matters for workers earning close to the threshold.
What Counts as Disposable Earnings
Disposable earnings are what remains after amounts required by law to be withheld from your paycheck.3Justia. Tennessee Code 26-2-102 – Part Definitions Federal income tax, Social Security, and Medicare come off the top. Anything else — health insurance premiums you elected, 401(k) contributions, life insurance, union dues — stays in the calculation.
That distinction catches people off guard, because the number the creditor works from is bigger than the number that hits your bank account. If gross pay is $1,000, mandatory taxes remove $200, and voluntary deductions remove another $150, the garnishment percentage applies to $800, not $650.
Extra Protection If You Have Dependent Children
Tennessee shaves a little more off the garnishable base for parents. Disposable earnings drop by $2.50 per week for each dependent child under 16 who lives in the state before the garnishment amount is calculated.4Justia. Tennessee Code 26-2-107 – Exemptions for Dependent Children The dollars are modest — three qualifying children take $7.50 out of the weekly base — but the reduction runs for the life of the garnishment.
Income Sources a Creditor Cannot Touch
A long list of payments is exempt from garnishment for consumer debts, regardless of how much you owe:5Justia. Tennessee Code 26-2-111 – Additional Exemptions – Certain Benefit Payments – Awards – Tools of Trade – Health Care Aids – Child Support Obligations
- Social Security, Families First payments, and local public assistance.
- All veterans’ benefits.
- Disability, illness, and unemployment benefit payments, along with pensions that vested because of a disability.
- State unemployment compensation.
- Crime victim reparation awards, protected up to $5,000.
- Personal bodily injury payments, protected up to $7,500.
- Child support and alimony you receive, exempt once the funds are more than 30 days past the date you claim the exemption in court.
Retirement money gets its own treatment. Payments from pensions, profit-sharing plans, and annuities receive the same protection as wages under the standard cap. Assets sitting inside plans that qualify under the Internal Revenue Code — 401(k)s, 403(b)s, IRAs — generally cannot even be reached by creditors while they remain in the plan.5Justia. Tennessee Code 26-2-111 – Additional Exemptions – Certain Benefit Payments – Awards – Tools of Trade – Health Care Aids – Child Support Obligations Federal ERISA law layers on anti-alienation rules that block creditors from attaching most private employer pension benefits, with exceptions for divorce-related qualified domestic relations orders and federal tax liens.6Office of the Law Revision Counsel. 29 U.S. Code 1056 – Form and Payment of Benefits Once a distribution lands in an ordinary bank account, the ERISA shield falls away.
Bank Accounts Holding Federal Benefits
A frequent worry for people on Social Security is that a bank levy will trap their exempt benefits. Federal regulations require the bank to look before it freezes. Within two business days of receiving a garnishment order, the bank must review the account for federal benefit deposits during the prior two months.7eCFR. 31 CFR Part 212 – Garnishment of Accounts Containing Federal Benefit Payments
If it finds any, it must calculate a protected amount equal to the lesser of those benefit deposits or the current balance, and leave that money accessible to you without any court filing on your part.8eCFR. 31 CFR 212.3 – Definitions The bank cannot charge a garnishment fee against the protected amount. Anything in the account above the protected amount can still be frozen while the court sorts things out, so keeping benefits in an account separate from other deposits makes proof easier if a dispute arises.
Higher Caps for Support, Student Loans, and Taxes
The 25% ceiling does not apply to family support obligations. Tennessee allows income withholding for child support or alimony up to 50% of income after subtracting Social Security tax, withholding taxes, and health insurance premiums that cover the child.9Justia. Tennessee Code 36-5-501 – Income Withholding Because federal law under the CCPA permits withholding as high as 65% in some support cases, Tennessee’s flat 50% cap is more protective for most people in the state.10Office of the Law Revision Counsel. 15 U.S. Code 1673 – Restriction on Garnishment Support withholding also takes priority over consumer garnishments.
Defaulted federal student loans have their own track. After 270 days without payment, the Department of Education or its guaranty agency can garnish up to 15% of your disposable pay administratively, with no lawsuit required.11Office of the Law Revision Counsel. 20 U.S. Code 1095a – Wage Garnishment Requirement You must receive at least 30 days’ written notice and can request a hearing to challenge the debt or propose repayment terms. Ask for a hearing within 15 days of the notice and garnishment cannot start until it happens. Miss that window and it can begin while you wait. Loan rehabilitation (nine on-time payments) or consolidation are the most reliable ways to stop it.
IRS wage levies do not use a percentage at all. The IRS calculates an exempt amount tied to your filing status and dependents, then takes everything above that.12Internal Revenue Service. 13Office of the Law Revision Counsel. 15 U.S. Code 1674 – Restriction on Discharge From Employment by Reason of Garnishment A willful violation carries a fine up to $1,000, up to a year of imprisonment, or both. The protection covers one indebtedness only. If garnishment orders arrive for two or more separate debts, the federal shield no longer applies.
How the Process Works Once a Judgment Is Entered
A creditor cannot garnish wages without first suing you, winning a judgment, and obtaining a garnishment order from the court. Once the order is served, your employer has 10 days to file a written answer accounting for wages or property it holds, and 30 days to remit the garnishable portion to the court.14Tennessee Administrative Office of the Courts. Rule 69.05 – Garnishment
A continuing garnishment creates a lien on part of your wages until the judgment is paid or three months pass, whichever comes first.15U.S. District Court, Eastern District of Tennessee. Writ of Continuing Garnishment When the three months expire without full payment, the creditor can obtain a new writ. The cycle continues for as long as the judgment lives.
Challenging a Garnishment With an Exemption Claim
If a garnishment reaches income that should be protected, you can file an exemption claim with the court that issued the order. The paperwork starts with a Notice of Rights to Claim Exemption and usually includes an Affidavit of Income and Assets covering monthly earnings, dependents, and personal property.16Tennessee State Courts. Execution and Garnishment Forms The clerk’s office where the case was filed has the forms.
Fill them out carefully. The court uses your affidavit to decide whether the garnishment causes an unlawful hardship, and any mistakes weaken your credibility. Bring recent pay stubs, benefit award letters, and bank statements showing where your deposits come from. After the clerk accepts the paperwork, serve a copy on the creditor. The court sets a hearing, and if the exemption is granted it issues a modified order to your employer that reduces or ends the withholding.
How Long a Tennessee Judgment Can Follow You
A civil judgment in Tennessee is enforceable for 10 years. Before it expires, the creditor can file a motion to extend it another 10 years, and the process can be repeated indefinitely.17Tennessee Administrative Office of the Courts. Rule 69.04 – Extension of Time The creditor mails the renewal motion to your last known address. If you do not respond within 30 days, the extension is granted automatically. Respond and the burden is on you to show why the judgment should not be renewed. A determined creditor can keep a judgment alive for decades, so waiting the debt out is rarely a workable plan.