Why It Matters
After winning a money judgment, a landlord can file for wage garnishment to collect unpaid rent or damages directly from the tenant's employer. Federal law caps withholding at 25% of disposable income or the amount above 30 times the federal minimum wage — whichever is less.
At a Glance
- Requires a court money judgment before filing
- The employer (not the tenant) sends payments directly to the landlord
- Federal CCPA cap: 25% of disposable income, or amount above 30× the federal minimum wage — whichever is less
- "Disposable income" means pay after legally required deductions, not voluntary ones
- Many states impose stricter caps than federal minimums
- Texas, Pennsylvania, North Carolina, and South Carolina prohibit garnishment for most private debts
- The employer is legally required to comply once served the writ
- Employers cannot fire an employee solely for a single garnishment order
- Continues per-paycheck until the judgment is fully paid or the court terminates the order
- Self-employed tenants have no wages to garnish — consider a bank levy instead
How It Works
Wage garnishment is a post-judgment remedy — you cannot use it until you hold a court-issued money judgment. The process moves through four stages.
Stage 1 — Win the judgment. File suit in small claims or civil court for unpaid rent, property damage, or related costs. If the court rules in your favor, you receive a money judgment documenting the amount owed.
Stage 2 — Locate employment. You must know where the tenant works. Options include a debtor's examination subpoena (the tenant must appear and disclose their employer) or your own research using public records or skip-tracing services.
Stage 3 — File for the writ. Submit a writ of garnishment to the court clerk. Most jurisdictions charge a small filing fee. The court issues the writ, which you serve through the sheriff or a process server on the employer.
Stage 4 — Collection begins. The employer withholds the allowed amount from each paycheck and remits it to you or the court. Garnishment continues until the debt is paid, a court order terminates it, or the tenant files for bankruptcy.
Federal CCPA limits in plain terms. You can garnish the lesser of: (a) 25% of disposable earnings, or (b) the amount above 30 times the federal minimum wage ($7.25/hr × 30 = $217.50/week). For a tenant with $600/week disposable income: 25% = $150; amount above $217.50 = $382.50. The lesser is $150/week.
State law governs the details. Some states impose stricter caps. A handful — including Texas and Pennsylvania — prohibit private-creditor garnishment entirely. Always verify your state's rules before filing.
Real-World Example
Daryl owns a four-unit building in Indianapolis. After a contested eviction, the court awarded him a $4,200 judgment against his former tenant for unpaid rent and carpet damage.
After two months of silence, Daryl filed a debtor's examination, learned the tenant worked full-time at a logistics warehouse earning $720/week in disposable income, and paid the $35 filing fee for a writ of garnishment.
Indiana follows federal CCPA limits. The math: 25% of $720 = $180; amount above $217.50 = $502.50. The lesser figure is $180/week. At that rate, Daryl recovers the full $4,200 in about 23 weeks with no further action on his part.
Pros & Cons
- Passive collection — payments arrive automatically without tenant cooperation
- Employer compliance is legally mandatory
- Interest accrues on unpaid judgments in most states
- More reliable than chasing voluntary payment or conducting bank account searches
- Can be combined with other collection tools (liens, bank levy)
- Useless against self-employed tenants, the unemployed, or those paid under the table
- Requires knowing the employer's name and address — may need additional court filings
- Federal and state caps limit per-paycheck recovery, stretching collection over months
- Some states exempt nearly all wages from private-creditor garnishment
- Bankruptcy filing halts garnishment immediately and may discharge the debt
- Court and process server fees add upfront cost
Watch Out
Verify state law first. Texas, Pennsylvania, North Carolina, and South Carolina prohibit wage garnishment for private debts like unpaid rent. Filing in one of these states wastes time and money.
Judgment expiration. Money judgments typically expire in five to ten years. If the tenant has no garnishable income now, calendar a renewal date — an expired judgment cannot support a garnishment order.
Employer retaliation protections. Federal law prohibits firing an employee solely because of one garnishment order. If the tenant loses the job, your payments stop and you restart the employer search.
Bankruptcy stay. A bankruptcy filing halts garnishment immediately. Continued collection after receiving notice of bankruptcy can expose you to sanctions — contact an attorney right away.
Ask an Investor
The Takeaway
Wage garnishment is one of the most effective post-judgment collection tools for landlords — when it applies. It requires a W-2 employee in a garnishment-friendly state, but once the writ is served, collection becomes largely automatic. Win the judgment, locate the employer, file promptly, and let the employer do the work.