Can personal loan companies garnish your wages?

Personal loan companies can garnish your wages if you don’t pay, but it won’t happen immediately. If you stop making your personal loan payments, the lender will typically take steps to contact you to bring the account current. And while unpaid bills can certainly lead to wage garnishments, the lender must first sue you, obtain a judgment, and then get a court order before garnishing your wages. If a lender obtains a court order to garnish your wages, they are limited by federal law to 25% of your disposable earnings or the amount by which your disposable income exceeds 30 times the federal minimum wage, whichever is lower.