Stop Wage Garnishment in South Carolina

Legal Expert, Paralegal
Dena Standley, BA

Dena Standley is a seasoned paralegal with more than 20 years of experience in legal research and writing, having received a certification as a Legal Assistant/Paralegal from Southern Technical College.

Edited by Hannah Locklear

Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Summary: South Carolina is an excellent place to live if you do not want consumer creditors to garnish your wages. Even with a judgment, the court cannot order employers to withhold money from your paycheck for debts such as auto loans and leases. The only exception is if a debtor owes money to the government, child or spousal support, or consumer debt with a judgment from another state.

Unlike many states, South Carolina does not allow wage garnishment for consumer debts. Such creditors may threaten consumers with wage garnishment, but they will never legally enforce it.

Debts that lead to garnishment are those you owe the state or federal government, child or spousal support, and those with a judgment and withholding order from your previous state of residence.

Unlike its neighbor North Carolina, South Carolina law does not require employers to honor wage garnishment orders from out-of-state. Creditors pursuing consumers who have recently relocated to South Carolina would need a new court order to continue wage garnishment.

A closer look at the state's wage garnishment laws reveals ways to stop the creditor from taking more than they should out of your paycheck. In this articles, we’ll break down these laws and ways you can stop wage garnishment in South Carolina.

South Carolina wage garnishment statutes

The Consumer Protection Code governs wage garnishment in South Carolina. Below is a breakdown of the applicable law.

Consumer debts do not qualify for garnishment

Consumer Protection Code Section 37-5-104 prevents a creditor from withholding money to be paid to a debtor to recover debts arising from consumer loans and credit. Consumer credit includes:

Credit cards
Consumer leases
Auto loan
Medical bills and other personal loans

A creditor can only garnish wages to recover consumer debt if they have a previously initiated garnishment order from the state where a debtor used to live. But even then, they would have to go to a South Carolina court to obtain a new order. South Carolina employers cannot withhold consumers' earnings based on an order from another state.

Back taxes do not require a court order

If you owe money to the South Carolina Department of Revenue or the IRS, they do not need a court judgment to garnish your wages. They can also recover tax arrears from typically exempt earnings, such as government benefits.

Federal loans qualify for garnishment without a court order

Like taxes, federal student loans use an administrative garnishment process that does not require a court order to implement.

Child and spousal support debts qualify for garnishment

An employer must satisfy a child support court order. The order can come from the South Carolina Department of Social Services, state court clerks, child support enforcement agencies from out-of-state, or a court in a different state. All child support orders have an automatic withholding order that an employer must obey.

Employers cannot terminate a debtor's employment because of garnishment

Wage garnishment adds to an employer's job description. If a creditor garnishes your wages, your employer becomes the garnishee. They must respond to the garnishment notice and ensure creditors receive their cut. For this reason, an employer may feel tempted to fire you. Fortunately, the law protects debtors undergoing garnishment from such unlawful terminations (Section 37-5-106).

Exemptions

Under South Carolina law, some of your earnings are exempt from garnishment:

The court can only grant a withholding order on your earnings if you earn more than 30 times the minimum hourly wage weekly. South Carolina's minimum wage is $7.25 per hour. Consumer creditors will not obtain a garnishment order if you earn $217.50 or less weekly in disposable income.
Supplemental Security Income, benefits for people living with disability, unemployment benefits, and Social Security are exempt from garnishment. So are annuities, retirement benefits, and life insurance.
Income from child support or alimony is typically exempt.

With these laws in mind, let us consider how you can stop wage garnishment in South Carolina.

Prevent and stop wage garnishment in South Carolina

If you recently relocated to South Carolina with an existing garnishment order, you may be unable to respond to the original lawsuit. But the creditor must still obtain a new court order to withhold your wages. Seize every opportunity to defend your rights when attending court hearings.

You can stop a wage garnishment order already in place by:

File for bankruptcy

Whenever a consumer files for bankruptcy, the filing initiates the Automatic Stay. You don't need to obtain a separate order for the Stay to start.

The injunction stops all creditors from collecting debts, at least for some time. Eventually, all dischargeable debts disappear, and you can start rebuilding your finances again.

Apply for exemptions

South Dakota law allows for multiple exemptions. You may qualify for one or of those discussed above.

For example, if you earn less than $217.50 a week, a consumer creditor cannot garnish part of it. If your only income is disability benefits, it is exempt. But you need to fill out an exemption form with the court clerk. The levying officer and the creditor should also receive a copy of your claim of exemptions.

There are exceptions when the debts are state and federal taxes or defaulted federal student loans. Such creditors garnish your wages without a court order and may even collect from typically exempt income.

Disputing the garnishment order

In South Carolina, a garnishment order may only be valid if backed by a court order from within the state. Some consumer creditors may try to garnish your wages with a money judgment. You can launch a formal dispute with the courts to overturn such garnishments.

Resolve your debts in South Carolina

Few creditors can garnish your wages in South Carolina than in most states. But you can still fall victim to wage garnishment if you owe taxes and spousal or child support. A garnishment order from your previous state of residence can also follow you into South Carolina.

Stop garnishment or reduce the amount by filing an exemption claim, disputing the order, or filing bankruptcy. SoloSuit also helps with debt elimination at different stages and can assist you in resolving your outstanding debts for good.

Respond to a debt lawsuit in South Carolina

If you’ve been sued for debt in South Carolina, you should respond to the case with a written Answer to increase your chances of winning.

To draft and file your Answer, follow these steps:

Respond to each claim against you.
Assert your affirmative defenses.
File the Answer in court, and send a copy to the opposing attorney.

SoloSuit can help you with all these steps and more. Learn more from our guide on How to Answer a Summons for Debt Collection in South Carolina (2023 Guide) or by watching the video below:

What is Solo?

Solo makes it easy to resolve debt with debt collectors.

You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt. SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

SoloSettle can help you contact your debt collector or creditor and negotiate the debt to settle for less, all online. It simplifies and streamlines the process to settling your debt.

No matter where you find yourself in the debt collection process, Solo is here to help you resolve your debt.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

How to Answer a Summons for debt collection in all 50 states

Here's a list of guides on how to respond to a debt collection lawsuit in each state:

The Ultimate 50 State Guide

Debt collector guides

Are you being contacted by a debt collector? We’re making guides on how to resolve debt with each one.

Arbitration

If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.

Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

Bankruptcy

Bankruptcy is a great way to legally resolve debt, but it's usually best to consider it as a last resort. Here are some bankruptcy guides to help you decide which debt resolution option is best for you.

Check your case status

Don’t have time to go to your local courthouse to check the status of your case? We’ve created state guides on how to check the status of your case throughout the US, complete with online search tools and court directories.

Credit

Debt has a big impact on your credit. Below is a list of guides on how to repair and improve your credit, even while managing major debt, along with other credit-related resources.

Debt collection FAQs

Find answers to some of our the most commonly-asked questions about debt collection below.

Debt collection documents and templates

If you're dealing with debt, these documents and templates will help you respond, protect your rights, negotiate, and resolve your debts.

Debt relief

We’ve created a specialized guide on how to find debt relief in all 50 states, complete with steps to take to find relief, state-specific resources, and more.

Debt settlement

Debt settlement is one of the most effective ways to resolve a debt and save money. We’ve created state guides on debt settlement. Find out how to settle in your state with a simple click and explore other debt settlement resources below.

Eviction

Facing an eviction? The following guides will help you navigate your situation with confidence.

Federal debt collection laws

Knowing your rights makes it easier to stand up for your rights. Below, we’ve compiled all our articles on federal debt collection laws that protect you from unfair practices.

Legal aid

Helping people find access to justice is at the heart of Solo's misison. If you're dealing with a legal debt issue, the following guides will help you through it.

Medical debt

Having a health challenge is stressful, but dealing with medical debt on top of it is overwhelming. Here are some resources on how to manage medical debt.

Personal finance

Learn how to manage your finances and overcome crushing debt. Check out our personal finance guides below.

State debt collection laws

Debt collection laws vary by state, so we have compiled a guide to each state’s debt collection laws to make it easier for you to stand up for your rights—no matter where you live.

Statute of limitations on debt

Like all debt collection laws, the statute of limitations on debt varies by state. So, we wrote guides on each state’s statutes and more.

Stop collection calls

Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.

Wage garnishment

Forgot to respond to your debt lawsuit? The judge may have ordered a default judgment against you, and with a default judgment, debt collectors can garnish your wages. Here are our guides on how to stop wage garnishment in your state, plus other wage garnishment resources.

The Debt Hotline

Hosted by Team Solo, The Debt Hotline breaks down debt and personal finance topics with help from attorneys, financial experts, and industry pros. We respond to real questions to help you navigate debt with knowledge and courage.

Other debt resources

It only takes 15 minutes.

And 50% of our customers' cases have been dismissed in the past.

"Finding yourself on the wrong side of the law unexpectedly is kinda scary. I started researching on YouTube and found SoloSuit's channel. The videos were so helpful, easy to understand and encouraging. When I reached out to SoloSuit they were on it. Very professional, impeccably prompt. Thanks for the service!" - Heather

Get Started