HomeCan The Department Of Treasury Garnish Wages?

Can The Department Of Treasury Garnish Wages?

We Reduce Business Debt

Lawscape is dedicated to helping business owners successfully resolve their business debt without headaches, or long term consequences.

We Provide Nationwide Business Debt Relief

Lawscape provides nationwide business debt relief services. We work a wide array of lenders, service providers, and types of business debt. We are able to restructure and reduce, all types of secured and unsecured business debt. 

Millions of Dollars in Debts

Our team has experience handling 10’s of millions in debt, ranging from SBA debt, to Merchant Cash Advance and more. 

All Types Of Debt

Regardless of the type of business debt you have, we can help. We have experience handling all types of secured and unsecured business debt. 


Our company is led by experienced business debt relief experts who have experience handling secured and unsecured debt nationwide. 

Failing To Repay Business Debt Isn’t The End

Many business owners think failing to repay business debt means: your business is over.

This simply isn’t true. Business debt is a problem which CAN be handled, just like everything else; but only if you take pro-active steps. Lawscape helps you understand the law, and works with you to make sure that business debt isn’t the end of your business. 

What Are Some Ways We Can Help With Business Debt Relief?

Our experienced business debt relief consultants are here to help you through this stressful time. 

Ah, running a small business! It’s no secret that it’s not an easy ride. And look – I get it. Almost half of small businesses don’t see their first birthday and a shocking 95 out of every 100 don’t hit their fifth year. And between you and me, cash flow is usually the villain here. When there’s not enough money to keep a business running, let alone expand and replenish inventory, small business owners might turn to – you guessed it – SBA loans! Now the real question on everyone’s mind is: What happens when a small business defaults on its SBA loan? Could the Department of Treasury potentially swoop in and take a bite out of your hard-earned pie – wage garnishment style? Well, my friend, let’s delve deeper into that over a cup of coffee, shall we?

The Garnishment Dance

So a whopping 3% of Americans were staring down wage garnishment for consumer debt last year – no shoestring number by any means! So let’s take a moment to look this monster in the eye. Wage garnishment is pretty much a court saying your paycheck’s too thicc and some of it needs to go to pay off your debts. No other party – like the federal government – needs to wait on a court order to garnish wages. And that’s where things can get ugly.

What’s on the garnishment plate? It could be credit card debt, student loans, auto loans, alimony, or child support. But worry not, for garnishers can’t secure your entire paycheck. The Wage and Hour Division of the Department of Labor is our friend here. It calculates the maximum portion of your paycheck open to garnishment.

So, are we all on the same page about wage garnishment? Great. Now let’s see how this ties in with SBA loans and the Department of Treasury.

Is Your Loan Fair Game for The Department of Treasury?

Uh-oh, you’ve defaulted on your SBA loan. Is your paycheck up for grabs now? The Department of Treasury sure thinks so! It’s armoured with the Bureau of Fiscal Service and it’s not afraid to use it. This fiend handles all collections and garnishments for federal agencies, including the Treasury. It’s not your regular garnishment – it’s what they call administrative wage garnishment, or AWG.

The Department of Treasury uses these AWGs to hold back up to 15% of an employee’s disposable income, in case you owe a non-tax debt to the feds. Good news? You can appeal against an AWG – and here’s how to go about it.

Fighting the Garnishment Order

Keep in mind, the Fiscal Service has no time or need for court orders. If they’re tapping their nibs, preparing to garnish your wages, they won’t wait on a court order.

Now, before they send a garnishment order, they’ll send you a notice of their intent. You’ve got 15 days from the time this notice is mailed to request a hearing. If you’re late, buckle up, because there’s still a chance that the garnishment could happen while you’re waiting on a hearing.

Why should you request a hearing? Well, this is your battle arena where you can dispute the amount you owe, or even the existence of the debt itself. This is also where you can hash out the conditions for your proposed repayment schedule.

Unemployment and Bankruptcy

Were you forcibly de-crowned from your job? Have you been jobless for at least a year? Then it’s time to let the Fiscal Service know.

If you’re knee-deep in bankruptcy proceedings, there’s usually a stay put in place. You can sleep easy knowing that the garnishment storm won’t hit while a bankruptcy stay’s in effect. Just make sure you have the Fiscal Service on speed dial to let them know.

When it comes to sorting out defaults on their loans, the Small Business Administration is all prepped up with a hearing process.

Walking the SBA Loan Tightrope

If your business is wallowing in a SBA loan default, you don’t have to sail that storm all by yourself. I recommend having a seasoned legal team like the professionals at Lawscape by your side to negotiate the winding maze of the debt resolution process.

Trust me, that’s one smart move! A legal representative speaking for you makes the SBA sit up and take notice. Plus, everything you need to know about SBA loan recovery is right there on their fingertips.

Help’s on the Way!

Yes, wage garnishment is scary. The Department of Treasury can garnish your wages and they won’t hesitate. That’s all the more reason to engage with the SBA to resolve your loan default.

If you’re stuck with your SBA loan, Lawscape and the team at Lawscape are here to help. Have your case evaluated with Lawscape today, and let’s get you back on solid ground!

Lawscape Can Help You Manage Your Business Debt

If you’re struggling with business debt, we can help you understand your situation. During the initial consultation, we’ll go over the contract, and other legal documents you signed. After that, our firm will work with you to get a better understanding of your situation, and help you come up with a game plan that keeps your business alive. 

We Handle It All


Merchant Cash Advance


SBA Debt Relief


Secured Business Debt


Unsecured Business Debt

Everyone has different types of business debt. What matters is that you take it seriously. Regardless of whether it’s secured, or unsecured, you need to work with a firm that understands how to negotiate, reduce, settle, and manage, this business debt. 

Discuss your situation today

We are here to help you, and want nothing more than to help you save your business. Speak to our business debt relief specialists today.

Contact information

Call us today for a risk free consultation.

Copyright: © 2023 Lawscape. All Rights Reserved.

This is a staging enviroment