Garnishments
A garnishment occurs when money is collected from someone's wages to meet the requirement of a debt. Garnishments are ordered by a judge or can come directly from the order of the IRS. A garnishment is seen as a last ditch effort to collect the debt and most often used as a scare tactic from debt collectors.
The federal law does limit the amount that can be garnished from a paycheck. The amount is limited to 25 percent of one's take-home pay after taxes. Though a garnishment on your credit report is detrimental, it's not as bad as a bankruptcy.
The judgment that was brought against you to begin the garnishing of wages will stay on your credit report for up to seven years. It's a good idea to start rebuilding your credit score as soon as the wage garnishment has ended. Having years of good bill payments will give a lender a better sense that you are now financially sound and increase your chance of getting a loan.