For the most part, a creditor must sue you, obtain a court judgment, and then solicit the help of a sheriff or other law enforcement officer to garnish wages. Even then, the maximum the creditor can take is 25% of your net pay, and you can protest that in court if you can't live on only 75% of your wages.

In three situations, your wages may be garnished before you are sued:

The IRS can take everything but about $100 per week.
The Department of Education can garnish up to 15% of your wages and a state guarantee agency can garnish up to 10% of your wages if you're in default on a student loan.
Up to 50% of your wages can be garnished to pay child support or alimony.

To place a lien on your house or empty your bank account, almost all creditors must first sue you, get a judgment, and then use a law enforcement officer. A few types of creditors, such as an unpaid contractor who worked on your house, can put a lien on your house without suing. And the IRS can place a lien or empty your bank account without suing first.

Your tax refund cannot be taken unless the Treasury Department receives such a request from the IRS, the Department of Education, or a child support collection agency.

Can I go to jail for not paying my debts?

Debtors' prisons were eliminated in the United States by 1850. In a few unusual situations, however, you can still be jailed if you:

willfully violate a court order, especially an order to pay child support
are convicted of willfully refusing to pay income taxes, or
are about to conceal yourself or your property to avoid paying a debt for which a creditor has a judgment against you.

DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.

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