Wisconsin Garnishment Exemption Claim

What an Exemption Claim Does

After you serve a garnishment on a debtor's employer or bank, the debtor can claim applicable statutory exemptions. For earnings garnishment, Wis. Stat. § 812.34 sets the earnings exemptions; for bank garnishment, covered federal benefit deposits receive automatic protection under 31 CFR Part 212. If a court upholds an exemption claim, the protected funds are released to the debtor.

An exemption claim doesn't void your garnishment — it carves out the protected portion. The non-exempt balance still flows to you.

Disposable Earnings and the 20% Cap

Wisconsin earnings garnishment under Chapter 812, Subchapter II generally exempts 80% of disposable earnings, limiting withholding to 20%, subject to further statutory exemptions under Wis. Stat. § 812.34.

Disposable earnings means gross pay minus deductions required by law, such as federal and state income tax, Social Security, and Medicare. Voluntary deductions — health insurance premiums, union dues, and 401(k) contributions — are not subtracted. The employer calculates disposable earnings each pay period based on these rules.

If the debtor claims the withholding calculation is wrong — that the employer deducted too much — the court reviews the employer's math against the statutory formula.

Funds That Are Exempt From Garnishment

Certain income sources are fully or substantially exempt under Wisconsin and federal law:

• Social Security benefits (including SSI and SSDI) are exempt under 42 U.S.C. § 407 and cannot be garnished for most civil judgments
• Veterans' benefits are protected under 38 U.S.C. § 5301
• Public assistance and Wisconsin Works (W-2) payments are exempt
• Unemployment compensation is fully exempt under Wis. Stat. § 815.18(3)(a)
• Worker's compensation benefits are exempt under Wis. Stat. § 102.27

For bank account garnishment, the bank must automatically protect qualifying federal benefit payments directly deposited during the two months before service. A debtor may claim other applicable exemptions for funds in the account.

How the Exemption Process Works

1. The debtor receives notice of the garnishment (you serve them a copy along with the garnishee)
2. For earnings garnishment, the debtor completes and delivers Form CV-424 claiming an exemption within 20 days of service; the employer holds withheld funds and the court schedules an expedited hearing. Bank garnishment uses Form CV-303 and a separate procedure.
3. The court schedules a hearing — both you and the debtor appear
4. The judge reviews the debtor's evidence and rules on whether the exemption applies
5. Exempt funds are released; non-exempt funds are paid to you

For an earnings garnishment, delivering Form CV-424 within 20 days of service triggers the statutory process for holding withheld funds and an expedited hearing.

What Creditors Should Know

An exemption claim does not necessarily defeat the whole garnishment. The court reviews the claim and supporting information, and a creditor may file an objection. Common creditor responses include:

• Checking account records when a debtor claims funds are exempt
• Verifying the employer's disposable earnings calculation against pay stubs
• Objecting when the debtor claims voluntary payroll deductions as mandatory

If the debtor's primary income is from fully exempt sources, garnishment may not yield recovery — but docketing the judgment for a 10-year real estate lien preserves your position for future enforcement when the debtor's financial situation changes.

For a full breakdown of Wisconsin exemptions and how they affect each enforcement tool, the Wisconsin judgment collection guide includes an exemption reference table and enforcement decision flowchart.

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