- Wisconsin is a community property state. Generally speaking, a spouse has liability for the other spouse's debts in community property states. If the creditor sues both spouses regarding a debt and prevails, the creditor can get a judgment against either
Can my husband's wages be garnished for my debt?
I live in Wisconsin. I think a garnishment of my wages may happen. What percentage can be garnished from my wages? This is a civil suit. I am married and need to know if my husband's wages can be garnished for the same debt?
See the Bills.com resource Wisconsin Collection Laws for a general overview of the rights and liabilities of consumers under Wisconsin law.
Regarding your spouse's exposure to liability for your debt, that is dependent on the facts of each situation. Wisconsin is a community property state. Generally speaking, a spouse has liability for the other spouse's debts in community property states. If the creditor sues both spouses regarding a debt and prevails, the creditor can get a judgment against either or both spouses in that situation. However, if the creditor sues only one spouse, it cannot get a judgment against both spouses.
Therefore, a creditor with a judgment against a spouse may garnish the wages of that spouse, but not the other.
Joint financial accounts may be levied (called attachment in Wisconsin). Therefore, in a situation where a spouse expects to be a defendant in a lawsuit, the spouses should close all joint accounts to limit any exposure to attachment of funds in joint accounts.
If you reside in another state, see the Bills.com Wage Garnishment article to learn more. I hope this information helps you Find. Learn & Save.
Mortgages, credit cards, student loans, personal loans, and auto loans are common types of debts. According to the NY Federal Reserve total household debt as of Q3 2023 was $17.291 trillion. Housing debt totaled $12.489 trillion and non-housing debt was $4.802 trillion.
A significant percentage of people in the US are struggling with monthly payments and about 26% of households in the United States have debt in collections. According to data gathered by Urban.org from a sample of credit reports, the median debt in collections is $1,739. Credit card debt is prevalent and 3% have delinquent or derogatory card debt. The median debt in collections is $422.
Each state has its rate of delinquency and share of debts in collections. For example, in Ohio credit card delinquency rate was 4%, and the median credit card debt was $412.
Avoiding collections isn’t always possible. A sudden loss of employment, death in the family, or sickness can lead to financial hardship. Fortunately, there are many ways to deal with debt including an aggressive payment plan, debt consolidation loan, or a negotiated settlement.