Wage garnishment for consumer debts may occur after a creditor goes to court and wins a judgment against a consumer. A judgment is a court decision stating the consumer owes a specific amount of money, allowing a creditor to take steps to seize a portion of the consumer’s wages to pay the debt. With unemployment reaching unprecedented levels amid the ongoing COVID-19 crisis, many Americans will be unable to pay old debts or cover expenses related to food, rent, and medical costs. Garnishment of wages to collect these judgments risks destabilizing family finances and local businesses that depend on consumer spending just as the economy reopens. We support adoption of policies to protect wages from garnishment until the end of the economic crisis to protect families and communities struggling to get back on their feet.
