Arkansas Wage Garnishment Laws

Creditors can't just seize all of the money in your paycheck. Different rules and legal limits determine how much of your wages can be garnished. Federal law limits how much creditors, including judgment creditors, can take. Some states set a lower percentage limit for how much of your wages are subject to garnishment.

Arkansas wage garnishment laws generally follow federal wage garnishment laws. For most people, when a creditor garnishes your wages in Arkansas, it can only take 25% of your wages at most. But Arkansas offers more protection for laborers and mechanics.

What Is a Wage Garnishment?

A "wage garnishment," sometimes called a "wage attachment," is an order requiring your employer to withhold a certain amount of money from your pay and send it directly to one of your creditors.

What Are the Types of Wage Garnishments?

Generally, any of your creditors might be able to garnish your wages. Some creditors must first get a judgment and court order before garnishing wages. Other creditors don't need a court order.

The most common types of debt that may be garnished from your wages include:

• child support and alimony
• unpaid federal and state income taxes
• federal student loans, and
• court judgments against you for some other unpaid bill, like a credit card balance or personal loan.

What Is the Most Judgment Creditors Can Garnish From My Paycheck Under Federal Law?

Under federal law, the garnishment amount for judgment creditors is limited to 25% of your disposable earnings for that week (what's left after mandatory deductions) or the amount by which your disposable earnings for that week exceed 30 times the federal minimum hourly wage, whichever is less. (15 U.S.C. § 1673).

Some states limit creditors to a lesser amount. The creditor then has to follow the state's garnishment laws.

What Are the Arkansas Wage Garnishment Laws?

Again, federal law places limits on wage garnishment amounts. While states are free to impose stricter limits, Arkansas hasn't done so for most workers. So, federal law governs in Arkansas, with one exception (see below).

What Are the Limits on Wage Garnishment in Arkansas?

In Arkansas, if your disposable earnings are 30 times the minimum wage or less, your wages can't be garnished. If your disposable earnings are more than 30 times the federal minimum wage, your creditor can only take that amount over minimum wage or 25% of your disposable earnings, whichever is less. (15 U.S.C. § 1673).

"Disposable earnings" are the wages left after your employer has made deductions required by law.

What Is the Wage Garnishment Exemption in Arkansas?

If you are a laborer or mechanic, you get more protection from garnishment in Arkansas: 60 days of your wages are exempt if the wages plus your property don't exceed the amount exempt under the state constitution ($500 if you're married or head of household; otherwise, $200.) Also, under Arkansas law, the first $25.00 per week of the net wages of all laborers and mechanics is absolutely exempt from garnishment. (Ark. Code §16-66-208).

To get the exemption, you must file with the court a sworn statement that the 60 days' wages is less than the amount exempt under the state constitution and that you don't own sufficient other personal property which, together with 60 days' wages, would exceed in amount the limits of the constitutional exemption. (Ark. Code §16-66-208).

If you think you qualify for this exemption, it's a good idea to talk to a lawyer to get more information about the amount of the exemption and the process for getting the exemption.

What Is the Arkansas Wage Garnishment Process?

The garnishment process often starts after a creditor gets a judgment in court against a debtor. If a creditor gets a judgment against you, your employer will get a notice. The notice tells your employer they must withhold a specific amount of your wages. You'll get notice of the garnishment, too.

The garnishment documents that you receive should contain instructions on what you must do to object to the garnishment by claiming exemptions. (You also might be able to object if the wage garnishment was made in error or the creditor failed to follow the law or comply with legal procedures. A garnishment lawyer can help you identify any mistakes and object to the garnishment.)

If you don't object or if your objection fails, your employer will start taking money out of your paycheck and sending it to the garnishing creditor.

Limits for Child Support, Federal Student Loans, and Unpaid Taxes

If you owe child support, federal student loans, or taxes, the government or creditor can garnish your wages without getting a court judgment for that purpose. The amount that can be garnished is different than it is for judgment creditors, too.

Garnishment Limits for Unpaid Child Support

Since 1988, all court orders for child support include an automatic income withholding order. The other parent can also get a wage garnishment order from the court if you get behind in child support payments.

Federal law limits this type of wage garnishment. Up to 50% of your disposable earnings may be garnished to pay child support if you're currently supporting a spouse or a child who isn't the subject of the order. If you aren't supporting a spouse or child, up to 60% of your earnings may be taken. An additional 5% may be taken if you're more than 12 weeks in arrears. (15 U.S.C. § 1673).

Garnishment Limit for Federal Student Loans in Default

If you're in default on a federal student loan, the U.S. Department of Education or any entity collecting for this agency can garnish up to 15% of your pay. (20 U.S.C. § 1095a(a)(1)). This kind of garnishment is called an "administrative garnishment."

But you can keep an amount that's equivalent to 30 times the current federal minimum wage per week. (Federal law protects the level of income equal to 30 times the minimum wage per week from garnishment.) (15 U.S.C. § 1673).

Garnishment Limits for Unpaid Taxes

The federal government can garnish your wages (called a "levy") if you owe back taxes, even without a court judgment. The weekly exempt amount is based on the total of the taxpayer's standard deduction and the aggregate amount of the deductions for personal exemptions allowed the taxpayer in the taxable year in which such levy occurs. Then, this total is divided by 52. If you don't verify the standard deduction and how many dependents you would be entitled to claim on your tax return, the IRS bases the amount exempt from levy on the standard deduction for a married person filing separately, with only one personal exemption. (26 U.S.C. § 6334(d)).

States and local governments might also be able to garnish your wages to collect unpaid state and local taxes. Contact your state labor department to find out more.

Restrictions on Job Termination Due to Wage Garnishments

Complying with wage garnishment orders can be a hassle for your employer; some might prefer to terminate your employment rather than comply. State and federal law provide some protection for you in this situation.

According to federal law, your employer can't discharge you if you have one wage garnishment. (15 U.S.C. § 1674). But federal law won't protect you if you have more than one wage garnishment order.

Some states offer more protection for debtors. In Arkansas, your employer can't fire you because of a garnishment if you are a noncustodial parent with an income withholding order. For example, if you are paying court-ordered child support through an income withholding order from your paycheck and you don't live with the child you're supporting, your employer can't terminate you because of the withholding order. (Ark. Code § 9-14-226).

What Are the Consequences of Wage Garnishment?

The most obvious consequence of a wage garnishment is a reduction in your take-home pay. A smaller paycheck can affect your ability to cover basic living expenses, potentially leading to difficulties paying your monthly bills.

Also, while a wage garnishment won't appear on your credit reports, creditors do report delinquent debt to the credit reporting agencies. And the reports can include information about how the debt is being collected, including through a wage garnishment. The missed payments culminating in a wage garnishment and other negative information will generally stay on your credit reports for seven years, affecting your future financial opportunities and potentially hindering your efforts to rebuild your credit.

Beyond the financial strain, the emotional consequences of wage garnishment can be stressful. Knowing that some of your earnings will be garnished can lead to frustration and anxiety. Seeking advice from a lawyer and exploring ways to resolve the underlying debt or work out payment terms can lessen some of these pressures.

How to Protect Yourself From Wage Garnishment

If you receive a notice of a wage garnishment order, you might be able to protect (exempt) some or all of your wages by filing an exemption claim with the court or raising an objection. The procedures you need to follow to object to a wage garnishment depend on the type of debt that the creditor is trying to collect, as well as the laws of your state. But usually, you must act quickly. File the required form as soon as possible. You might have to go to a hearing, but if you win, a judge might eliminate or reduce the garnishment.

Depending on the type of debt that's being garnished, you might have other options. For example, if the IRS is garnishing your wages because of overdue taxes, you can make a settlement offer (an "offer in compromise") or set up a payment plan.

And you can often stop garnishments by filing for bankruptcy. Your state's exemption laws determine the amount of income you'll be able to keep.

Talk to a lawyer to learn more about how you can protect your wages.

Read More Articles

Learn about wage garnishments for credit card debt.

Find out if a mortgage company can garnish your wages after foreclosure.

Get information about when a creditor will stop garnishing wages.

Getting More Information on Arkansas Wage Garnishment Laws

This article provides an overview of Arkansas wage garnishment laws. You can find more information on garnishment in general at the U.S. Department of Labor website.

To find more information about wage garnishment limits in Arkansas, including the procedures that employers must follow in carrying out wage garnishment orders, check out the Arkansas Department of Labor and Arkansas Law Help websites.

Talk to a Lawyer About Wage Garnishment in Arkansas

For information specific to your situation or to get help objecting to a garnishment, contact a local debt relief attorney.