Debt Consolidation to Stop Wage Garnishment: Is It Possible?

Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. By refinancing your mortgage, total finance charges may be higher over the life of the loan.
Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”

When you find yourself deep in debt and unable to pay, the legal system might take over. One way a court can order you to repay your debt is through wage garnishment, where a portion of every paycheck you earn goes to your lender before you even see it.

If you find yourself in this situation, you may be able to use a debt consolidation loan to ease the pressure and give you time to pay what you owe — without your wages being garnished any more.

Here’s what you should know about debt consolidation and wage garnishment:

What is wage garnishment and how does it work?

Wage garnishment is a legal procedure used to collect unpaid debts. Under a court order, a percentage of every paycheck you earn will be sent directly to your creditor to help satisfy your debt. Laws governing this process vary from state to state, but in most states, wages may be garnished to pay back consumer loans like credit cards and auto loans, or obligations like unpaid taxes, child support, and alimony.

Generally, a creditor must sue you to attempt to recover what you owe before your wages can be garnished. If the courts find you responsible for the debt and issues a judgment against you, it may then order your wages to be garnished.

The amount garnished from your paycheck will depend on how much you earn. Under federal law, creditors can’t take more than 25% of your disposable income in most cases, defined as the money left over after other required deductions are taken out. However, if you earn $217.50 per week or less, no money can be garnished.

When your wages are garnished, your employer takes the money out of your paycheck and sends it to the creditor before you see the money.

Can a debt consolidation loan stop wage garnishment?

In some cases, a debt consolidation loan may be able to stop wage garnishment. A debt consolidation loan is a type of personal loan that you can use to pay off all your unpaid bills, replacing them with a single loan with one payment.

Personal loans are generally unsecured, meaning you don’t need to put up your property as collateral and risk losing it if you fail to make your payments. They’re also typically paid back at a fixed interest rate, so your payment won’t change for as long as you have the loan.

If you can qualify for a debt consolidation loan, you may be able to use it to pay off the debts that led to the court-ordered wage garnishment. With the account now current, the wage garnishment should end. You then have the chance to pay back your new personal loan on time and finally climb out of debt.

The personal loan companies in the table below compete for your business through Credible. You can request rates from all of these partner lenders by filling out just one form (instead of one form for each) and without affecting your credit score.

Lender	Fixed rates	Loan amounts
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	9.95% – 35.99% APR	$2,000 to $35,000**
Fixed APR: 9.95% – 35.99% APR Variable APR: N/A Min. credit score: 550 Loan amount: $2,000 to $35,000** Loan terms (years): 2, 3, 4, 5* Time to fund: As soon as the next business day (if approved by 4:30 p.m. CT on a weekday) Fees: Origination fee Discounts: Autopay Eligibility: Available in all states except CO, IA, HI, VT, NV NY, WV Customer service: Phone, email Soft credit check: Yes Loan servicer: Avant Loan Uses: Debt consolidation, emergency expense, life event, home improvement, and other purposes Min. Income: $1,200 monthly
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	7.99% – 15.19% APR	$10,000 to $50,000
Fixed APR: 7.99% – 15.19% APR Variable APR: N/A Min. credit score: 700 Loan amount: $10,000 to $50,000 Loan terms (years): 3 to 6 Time to fund: Next business day Fees: No prepayment penalty Discounts: None Eligibility: Available in all 50 states Customer service: Phone Soft credit check: Yes Min. Income: Does not disclose Loan Uses: Debt consolidation, home improvement, self-employment, and other purposes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	7.99% – 35.99% APR	$5,000 to $50,000
Fixed APR: 7.99% – 35.99% APR Variable APR: N/A Min. credit score: 600 Loan amount: $2,000 to $50,000 Loan terms (years): 2, 3, 4, 5 Time to fund: As soon as 1 to 3 business days after successful verification Fees: Origination fee Discounts: None Eligibility: Available in all states except DC, IA, VT, and WV Customer service: Phone Soft credit check: Yes Loan servicer: Best Egg and Blue Ridge Bank Min. Income: None Loan Uses: Credit card refinancing, debt consolidation, home improvement, and other purposes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	6.99% – 24.99% APR	$2,500 to $35,000
Fixed APR: 6.99% – 24.99% APR Min. credit score: 660 Loan amount: $2,500 to $35,000 Loan terms (years): 3, 4, 5, 6, 7 Time to fund: As soon as the next business day after acceptance Fees: Late fee Discounts: None Eligibility:  Available in all 50 states Customer service: Phone Soft credit check: Yes Loan Uses: Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	7.99% – 29.99% APR	$7,500 to $50,000
Fixed APR: 7.99% – 29.99% APR Min. credit score: Does not disclose Loan amount: $10,000 to $50,000 Loan terms (years): 2, 3, 4, 5 Time to fund: As soon as 2 business days Fees: Origination fee Discounts: No Eligibility: Available in all states except CO, CT, HI, KS, NH, NY, ND, OR, VT, WV, WI, and WY Customer service: Phone Soft credit check: Yes Min. Income: None Loan Uses: Debt consolidation, home improvement, wedding, travel, medical expenses, and other purposes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	7.99% – 29.99% APR	$5,000 to $40,000
Fixed APR: 7.99% – 29.99% APR Min. credit score: 600 Loan amount: $5,000 to $40,000 Loan terms (years): 2, 3, 4, 5 Time to fund: As soon as 2 to 5 business days after verification Fees: Origination fee Discounts: None Eligibility: Available in all states except MA and NV Customer service: Phone, email, chat Soft credit check: Yes Min. Income: None Loan Uses: Debt consolidation and credit card consolidation only
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	8.3% – 36.0% APR	$1,000 to $40,000
Fixed APR: 8.3% – 36.0% APR Min. credit score: 600 Loan amount: $1,000 to $40,000 Loan terms (years): 3, 5 Time to fund: Usually takes about 2 days† Fees: Origination fee Discounts: None Eligibility: Available in all 50 states Customer service: Phone, email Soft credit check: Yes Loan servicer: LendingClub Bank Min. Income: None Loan Uses: Debt consolidation, paying off credit cards, home improvement, pool loans, vacations, and other purposes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	7.99% – 35.99% APR	$2,000 to $36,500
Fixed APR: 7.99% – 35.99% APR Min. credit score: 580 Loan amount: $2,000 to $36,500 Loan terms (years): 2, 3, 4, 5, 6 Time to fund: As soon as the next business day Fees: Origination fee Discounts: Autopay Eligibility: Available in all states except NV and WV Customer service: Phone, email Soft credit check: Yes Min. Income: $20,000 Loan Uses: Home improvement, consolidate debt, credit card refinancing, relocate, make a large purchase, and other purposes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	5.73% – 19.99% APR	$5,000 to $100,000
Fixed APR: 5.73% – 19.99% APR Min. credit score: 660 Loan amount: $5,000 to $100,000 Loan terms (years): 2, 3, 4, 5, 6, 7* Time to fund: As soon as the same business day Fees: None Discounts: Autopay Eligibility: Available in all states except RI and VT Customer service: Phone, email Soft credit check: No Loan servicer: LightStream Min. Income: Does not disclose Loan Uses: Credit card refinancing, debt consolidation, home improvement, and other purposes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	6.99% – 24.99% APR1	$3,500 to $40,0002
Fixed APR: 6.99% – 24.99% APR1 Min. credit score: 660 (TransUnion FICO®️ Score 9) Loan amount: $3,500 to $40,0002 Loan terms (years): 3, 4, 5, 6 Time to fund: Many Marcus customers receive funds in as little as three days Fees: None Discounts: Autopay Eligibility: Available in all 50 states Customer service: Phone Soft credit check: Yes Loan servicer: Goldman Sachs Min. Income: $30,000 Loan Uses: Credit card refinancing, debt consolidation, home improvement, major purchase, and other purposes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	18.0% – 35.99% APR	$1,500 to $20,000
Fixed APR: 18.0% – 35.99% APR Min. credit score: None Loan amount: $1,500 to $20,000 Loan terms (years): 2, 3, 4, 5 Time to fund: As soon as the same day, but usually requires a visit to a branch office Fees: Origination fee Discounts: None Eligibility: Must have photo I.D. issued by U.S. federal, state or local government Customer service: Phone, email Soft credit check: Yes Min. Income: Does not disclose
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	7.74% – 17.99% APR	$600 to $50,000 (depending on loan term)
Fixed APR: 7.74% – 17.99% APR Min. credit score: 660 Loan amount: $600 to $50,000* Loan terms (years): 1, 2, 3, 4, 5 Time to fund: 2 to 4 business days after verification Fees: None Discounts: None Eligibility: Does not disclose Customer service: Phone, email Soft credit check: No Min. Income: Does not disclose Loan Uses: Debt consolidation, home improvement, transportation, medical, dental, life events
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	6.99% – 35.99% APR	$2,000 to $50,000
Fixed APR: 6.99% – 35.99% APR Min. credit score: 640 Loan amount: $2,000 to $50,000 Loan terms (years): 2, 3, 4, 5 Time to fund: As soon as one business day Fees: Origination fee Discounts: None Eligibility: Available in all states except IA, ND, WV Customer service: Phone, email Soft credit check: Yes Min. Income: None Loan Uses: Debt consolidation, home improvement, vehicles, small business, new baby expenses, and other purposes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	5.99% – 35.99% APR	$3,500 to $40,000
Fixed APR: 5.99% – 35.99% APR Min. credit score: 600 Loan amount: $3,500 to $40,000 Loan terms (years): 2, 3, 4, 5 Time to fund: 90% funded within a day13 Fees: Origination Fee, $15 Late Fee, $25 NSF Fee Discounts: None Eligibility: Available in all states except CO, CT, ME, NV, NH, TN, VT, WV, WY, and all U.S. Territories Customer service: Phone, email Soft credit check: Yes Loan servicer: Reach Financial Min. Income: $1,000 monthly Loan Uses: Debt consolidation, credit card refinancing
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	7.99% – 23.43% APR10	$5,000 to $100,000
Fixed APR: 7.99% – 23.43% APR10 Min. credit score: Does not disclose Loan amount: $5,000 to $100,000 Loan terms (years): 2, 3, 4, 5, 6, 7 Time to fund: 3 business days Fees: None Discounts: Autopay Eligibility: Available in all states except MS Customer service: Phone, email Soft credit check: Yes Min. Income: Does not disclose Loan Uses: Solely for personal, family, or household uses
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	11.69% – 35.93% APR7	$1,000 to $20,000
Fixed APR: 11.69% – 35.93% APR7 Min. credit score: 560 Loan amount: $1,000 to $50,000 Loan terms: 3 to 5 years 8 Time to fund: Within one day, once approved9 Loan types: Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases Fees: Origination fee Discounts: Autopay Eligibility: A U.S. citizen or permanent resident; not available in DC, SC, WV Customer service: Phone, email Soft credit check: Yes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	7.46% – 35.97% APR	$1,000 to $50,000
Fixed APR: 7.46% – 35.97% APR Min. credit score: 560 Loan amount: $1,000 to $50,000* Loan terms (years): 2, 3, 5, 6 Time to fund: Within a day of clearing necessary verifications Fees: Origination fee Discounts: Autopay Eligibility: Available in all states except West Virginia Customer service: Email Soft credit check: Yes Min. Income: Does not disclose Loan Uses: Debt consolidation, credit card refinancing, home improvement, and other purposes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	5.4% – 35.99% APR4	$1,000 to $50,0005
Fixed APR: 5.4% – 35.99% APR4 Min. credit score: 580 Loan amount: $1,000 to $50,0005 Loan terms (years): 3 to 5 years4 Time to fund: As fast as 1 business day6 Fees: Origination fee Discounts: None Eligibility: Available in all 50 states Customer service: Phone, email Soft credit check: Yes Min. Income: $12,000 Loan Uses: Payoff credit cards, consolidate debt, take a course or bootcamp, relocate, make a large purchase, and other purposes
Compare rates from these lenders without affecting your credit score. 100% free!Compare Now
All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | 10SoFi Disclosures | Read more about Rates and Terms

How to qualify for a debt consolidation loan if your wages are being garnished

This is the tricky part. It may be difficult for you to qualify for a debt consolidation loan if your wages are being garnished. By the time you reach this stage of debt collection, your creditors have likely reported your delinquent accounts to the credit bureaus, which can severely damage your credit score.

That poses a challenge. Since personal loans are unsecured, lenders rely heavily on your credit score to determine whether they’ll offer you a loan. Some lenders have minimum credit scores you must meet to qualify. People with poor credit may struggle to find a debt consolidation loan. And if you do find a lender who will give you a loan, you may pay an extremely high interest rate.

With that said, it’s possible to qualify for a debt consolidation loan if your wages are being garnished. Try these strategies for the best shot at approval:

1. Check your credit. Before you start applying for loans, you should know exactly where you stand. You can get free copies of your credit report each year from the three major credit bureaus using AnnualCreditReport.com. Go through them carefully and check them for any errors. If you see mistakes, you can challenge the information with the bureaus and have them corrected. This may increase your score.
2. Protect your score. You should also use this time to shore up the other areas of your credit report. Focus on making all your bill payments on time, every time. Bring current any accounts that are past due, if you can. And avoid applying for new credit cards or other financial products before you seek a debt consolidation loan.
3. Shop around. Start requesting quotes from personal loan lenders for a debt consolidation loan. But just because the first lender you apply with may reject you, don’t quit. Seek out quotes from multiple lenders. Some have more flexible lending criteria than others. Compare the rates and terms you’re offered on a debt consolidation loan to find the best deal for you.
4. Apply for the loan. When you’ve found the best debt consolidation loan for your situation, your lender will give you instructions on how to proceed with a full loan application. You may need to provide documentation of your income and debts.
5. Use the loan to pay off your debts. Some personal loan lenders will pay your creditors directly using your debt consolidation loan funds. In other cases, the lender will send the money directly to your bank account, and it’s up to you to use it to pay off your debts. Make sure to get documents to prove that your accounts have been brought current.
6. Get out of wage garnishment. The court system that ordered your wage garnishment will likely be able to give you instructions on how to show that your debts have been paid and to end the wage garnishment. If you need help, an attorney may be able to assist you. Most states have legal aid organizations that can help.

If you’re looking for a debt consolidation loan to stop wage garnishment, Credible can help. Fill out a short form in two minutes to see your prequalified rates from various lenders, without affecting your credit score.

Other ways to stop wage garnishment

A debt consolidation loan isn’t your only option for ending wage garnishment. These other avenues may work, though consider the consequences carefully before pursuing them:

• Enter a debt repayment plan. Your creditors may offer to put you on a payment plan or debt settlement arrangement to help bring your account current. They may offer you a lower payment, more time to pay, or a lower total amount to pay off. While negotiating with your creditor, you can ask that wage garnishment be stopped as part of the plan.
• File a claim of exemption. Depending on the state you live in, you may qualify for exceptions that can prevent your wages from being garnished. These can include being part of government assistance programs. Consult your attorney and see if this is an option for you.
• Consider a home equity loan. If you own your home, you may be able to qualify for a home equity loan that you can use to pay off your debts. A home equity loan uses your property as collateral, and the amount you can borrow is based on how much your home is worth, minus the amount you owe on your mortgage. But keep in mind that if you fall behind on your payments, the lender can foreclose on your home.
• File for bankruptcy. Wage garnishment generally must stop while you’re under bankruptcy protection or other bankruptcy proceedings. However, bankruptcy has a major effect on your credit and wage garnishment may resume as part of your bankruptcy plan. You should only consider this option as a last resort.

Should I get a debt consolidation loan to stop wage garnishment?

If you can qualify, a debt consolidation loan can be a good option for stopping wage garnishment. With your new loan, you can pay off your delinquent debts and get a fresh start on your personal finances.

However, a debt consolidation loan may not always be the right course of action. You may not qualify for a loan, or the loan you’re offered may have a sky-high interest rate that can quickly put you deeper in debt. If you don’t have much income, taking on a new loan may not make sense.

A debt consolidation loan may also not be the best choice if your creditors are offering generous settlement options. Instead of paying off your full balance with a debt consolidation loan, you may be able to negotiate a lower amount to pay back. This can help you get out of debt more quickly.

A credit counselor can help you weigh your options and find the best plan for stopping wage garnishment. Credit counselors generally work for nonprofit organizations and can offer assistance for free or for an affordable price. Start by looking for credit counselors in your area from the Financial Counseling Association of America or the National Foundation for Credit Counseling.

Learn More: How to Get Out of Credit Card Debt

About the author

Andrew Dunn

Andrew Dunn is an award-winning mortgage and finance writer with a decade of experience covering the industry with articles published at Fox Business, LendingTree, Credit Karma, Axios Charlotte, and more.

Read More

Home » All » Personal Loans » Debt Consolidation to Stop Wage Garnishment: Is It Possible?