Can You Garnish Wages in Texas With a Federal Court Judgment?
Although Texas only allows wage garnishment under limited circumstances, it might be possible to obtain a garnishment order for a federal court judgment, particularly if the judgment was for a tort or breach of contract. Additionally, Texas allows garnishment for taxes owed, and although the IRS isn't required to seek a garnishment judgment from a court, it can still garnish a Texas' employee's wages.
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Overview of Texas Law
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Texas has some of the strictest garnishment laws in the country. Employees in the state of Texas are generally protected from wage garnishment, with a few exceptions. Credit card debt cannot be collected via garnishment in Texas. In fact, Texas typically only allows garnishment for IRS debt and child support arrears. However, there is a way for other creditors to "domesticate" garnishment suits to Texas, meaning the creditor moves the suit to a Texas court.
Federal Court Judgments
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Texas typically allows for garnishment if a Texas employee has had a federal court judgment against him. Because federal courts have broader jurisdiction, it's usually easier to seize wages or bank accounts due to a federal court judgment. If the judgment was due to a tort, such as medical malpratice, it's likely the judgment creditor will be able to reach the judgment debtor's assets in Texas.
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Domestication
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Every state has federal courts, which are divided by district. If a judgment creditor obtained a judgment in a federal court outside of Texas, it may be possible for the suit to be domesticated to Texas. Texas case law supports this, in that the Texas Court of Appeals has ruled that an out-of-state creditor can obtain wage garnishment in certain circumstances. However, domestication doesn't occur often, as it's complex, expensive and time-comsuming for the party seeking garnishment.
Additional Considerations
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If you obtained a garnishment order in a federal court, or if you won a tort lawsuit resulting in monetary damages against a defendant domiciled in Texas, the state typically allows for garnishment under both circumstances. If you are domiciled in Texas and someone is attempting to garnish your wages due to a federal court judgment, you should seek advise from an employment law attorney in Texas. Because Texas has strict limitations on wage garnishment -- and strict rules regarding which types of creditors can garnish wages -- you might be able to challenge an order of garnishment successfully.
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