Money & Debt · Wage Garnishment
Wage Garnishment Laws in Vermont
How much of your paycheck a creditor can take in Vermont, the pay that is fully protected, and what to do right now if a garnishment has started, cited to the statute.
Want your own number? Run your paycheck through the Vermont wage garnishment calculator →
The limit and what is protected in Vermont
How much a creditor can take, the pay that is exempt, and where it comes from in the code.
| Most a creditor can take | 15% of disposable earnings |
| How the limit works | A lower percentage cap than the federal 25% |
| Fully protected pay | For consumer debt, the greater of 85% of your weekly disposable earnings or 40 times the federal minimum wage ($290 a week at $7.25) is fully exempt, so a creditor can reach at most 15% of disposable pay and never dips below that 40-times floor. For non-consumer debt, the exemption is 75% or 30 times the federal minimum wage instead. |
| Other exemptions |
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| Federal backstop | The federal 25% / 30× minimum-wage floor also applies; a creditor can never take more than federal law allows. |
| Statute | 12 V.S.A. §3170(b) |
Vermont calls wage garnishment "trustee process against earnings," and 12 V.S.A. §3170 makes it markedly more protective than the federal rule for consumer debt. Where a consumer credit transaction is behind the judgment, 85% of weekly disposable earnings is exempt, capping garnishment at 15%, and the floor is the greater of that or 40 times the federal minimum wage. A judge can exempt even more on a showing of hardship, and a debtor who recently received state public assistance cannot have an earnings order entered at all. General non-consumer debts fall back to a 75% / 30-times exemption.
What you can do right now
Concrete, neutral steps if your wages are being garnished in Vermont. This is legal information, not legal advice.
- Confirm the debt is a consumer credit transaction
Under 12 V.S.A. §3170 a consumer credit transaction gets the strongest protection: 85% of your disposable pay is exempt, so a creditor can take at most 15%. Identify the origin of the debt, because a non-consumer debt uses the weaker 75% / 30-times exemption.
- Check the 40-times minimum wage floor
For consumer debt the exempt amount is the greater of 85% of disposable pay or 40 times the federal minimum wage, about $290 a week at $7.25. If your disposable pay is at or below that floor, a creditor cannot reach any of it.
- Raise hardship or a public-assistance bar at the hearing
Trustee process runs through a court hearing. If your reasonable weekly expenses for yourself and your dependents exceed the standard exemption, ask the judge to exempt more. If you received state public assistance in the last two months, no earnings order can be entered, but you must establish that at the hearing.
- Get free Vermont legal help
Vermont Legal Aid and the Vermont Judiciary self-help pages can explain the trustee-process forms and the hearing, and screen you for free representation. This is legal information, not legal advice, so confirm your own situation with a lawyer.
You do not have to face a garnishment alone. This resource can help you check whether an exemption applies and how to file the paperwork.
→ VTLawHelp.org (Vermont Legal Aid self-help)This is general legal information, not legal advice. Deadlines to claim an exemption are short and vary by court, so act quickly and confirm the specifics for your case.
What Vermont workers get wrong
Vermont protects far more of a paycheck from ordinary creditors than most states, and it starts by calling the process "trustee process against earnings" rather than garnishment. The key number is in 12 V.S.A. §3170. If your debt arose from a consumer credit transaction, 85% of your weekly disposable earnings is exempt, which means a creditor can reach at most 15% of your pay, well below the 25% federal ceiling. The exempt floor is actually the greater of that 85% or 40 times the federal minimum wage, roughly $290 a week at $7.25. Vermont goes further still. A judge can exempt even more if your reasonable weekly expenses for yourself and your dependents run higher than the standard exemption, and no earnings order can be entered at all against someone who received state public assistance within the two months before the hearing. General non-consumer debts fall back to a 75% exemption.
Common questions
How much of my paycheck can a creditor garnish in Vermont?
For a consumer credit transaction, 12 V.S.A. §3170 exempts 85% of your weekly disposable earnings, so a creditor can take at most 15%. The exempt amount is the greater of that 85% or 40 times the federal minimum wage, about $290 a week at $7.25. Vermont is markedly more protective than the federal 25% cap for consumer debt.
Why is Vermont garnishment called trustee process?
Vermont law uses the term "trustee process against earnings" for what other states call wage garnishment. It runs through a court hearing under Chapter 121 of Title 12, and the exemptions in 12 V.S.A. §3170 set how much of your pay is protected before any order can issue.
What is the difference between consumer and non-consumer debt in Vermont?
For a consumer credit transaction, 85% of disposable earnings is exempt (a 15% cap) with a 40-times minimum wage floor. For other, non-consumer debts, the exemption drops to 75% of disposable earnings or 30 times the federal minimum wage, whichever is greater, which is closer to the federal baseline.
Can a Vermont judge protect even more of my wages?
Yes. Under 12 V.S.A. §3170 the court may order a greater amount exempt if it finds that your reasonable weekly expenses for your own maintenance and your dependents exceed the standard exemption. And no earnings order can be entered against someone who received state public assistance within the two months before the hearing.
What debts can still reach my paycheck in Vermont despite these limits?
The §3170 exemptions cover consumer and general civil judgments. They do not stop garnishment for child support or spousal support, unpaid federal or state taxes, or defaulted federal student loans. Those follow their own federal rules and can take a share of your pay regardless of the trustee-process exemptions.
Not legal advicePlainStatute provides plain-language summaries of public law for general information only. This is not legal advice. Statutes change; always confirm current requirements with the official source linked above before acting.