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  • Cost To File for Bankruptcy?
  • Everything You Need to Know About Debt Settlement in NY
  • Wage Garnishment & Frozen Bank Accounts
  • Everything About Eviction & Repossession in NY
  • Everything You Need to Know About Foreclosure in NY?
  • What is a Mortgage Loan Modification?

Wage Garnishment & Frozen Bank Accounts

Millions of Americans currently find themselves in considerable debt, particularly given the adverse financial effects of the COVID-19 pandemic. Persistent letters, emails, and calls from creditors making collection attempts may be followed by requests for intervention from the court system for the repayment of delinquent debts, which is a daunting prospect for families and individuals who may be facing collection lawsuits and garnishments.  

According to the National Consumer Law Center [1], over 4 million American workers have wage garnishments for consumer debts, not counting garnishments for child support, taxes, or bankruptcy, meaning that 2.9% of the workforce has paychecks garnished in relation to student loans, consumer, and credit card debts.  

With the previous spike in unemployment rates during the pandemic and individuals finding themselves increasingly unable to pay judgments for old debts, in addition to current bills, many more households may soon be facing this prospect. Indeed, this is a likely scenario following the reemergence of collection lawsuits and garnishments that were temporarily suspended in several states during the COVID emergency, including New York.

The two main garnishment proceedings are wage garnishment and levying against your bank account, sometimes called bank account garnishment :  

  • Wage garnishment relates to situations where a court orders an employer to withhold money from an individual’s paycheck to pay debts that the employee has not repaid voluntarily . Wage garnishment is generally seen as a last-resort action by creditors, following unsuccessful collection attempts.
  • Bank account garnishment allows a creditor to remove non-exempt funds directly from a debtor’s account and apply them to the delinquent debt balance . Bank account garnishment is typically an option used in cases where the debtor is not gainfully employed.

There are numerous state and federal laws on garnishment, with federal protections providing a baseline of protected wages and state laws offering more specific—and at times wider—protections for debtors, which are subject to continuous change. Therefore, it is crucial to have solid and up-to-date knowledge of state exemptions and to receive accurate and specialized legal advice when facing such a situation.

Wage Garnishment and New York State “Income Executions”

Garnishments, called “ income executions ” in New York, refer to orders issued by a court or government agency requiring employers to withhold a certain amount of money from an employee’s paycheck for the benefit of one or more creditors.  

What this practically means is that the employer is ordered to take money directly from an indebted employee’s paycheck and send it to the creditor, instead. Consequently, the employee’s disposable earnings are directly and involuntarily reduced, by the portion set aside for the payment of the old debt. Regardless of whether you have unpaid credit card or medical bills, private student loans, or bank loans, an income execution/wage garnishment means you will have your paycheck reduced by the amount the court orders your employer to pay to your creditor.

The precise amount or percentage of one’s wages that may be garnished under a garnishment order is not unlimited. Title III of the Consumer Credit Protection Act (CCPA) [2] incorporates provisions protecting employees from discharge by their employers because their wages have been garnished for any one debt, as well as from garnishments that are overly burdensome, by limiting the amount of money that can be withheld from disposable income.  

Under CCPA, the maximum weekly garnishment amount cannot exceed either 25% of the employee’s disposable earnings or the amount by which those earnings are greater than 30 times the federal minimum wage of $7.25 per hour ($217.50 per week in 2022) [3]. Where state law affords greater protection than federal law, i.e. when it shields a larger amount of salary from garnishment, state law will apply.  

In New York, state law protects a higher percentage of wages and a higher minimum amount per week than that stipulated by federal law [4]. The New York State minimum wage of $15 an hour means that $450 per week is protected from garnishments, rather than the $217.50 under Federal law. New York state law also has exemptions in place for debtors based on receipt of or, in the case of New York, eligibility for public assistance.

In general, state laws protecting a higher flat amount per week mean that the wages of low-income debtors are almost fully protected, whereas protection of a higher percentage of debtors’ earnings benefits workers across the board [5]. It is also worth noting that eight other States also have similar laws in place protecting a higher percentage of wages and a higher minimum amount per week than federal law requires, whereas in North Carolina, Pennsylvania, South Carolina, and Texas, almost all wages are fully protected from garnishment.  

One must also bear in mind that creditors may seek to evade protections by serving the wage garnishment order on the consumer’s employer’s office in another State, which has less favorable laws in place than the debtor’s State of domicile (residence) and employment.  

Notwithstanding the above, attention must be paid to the fact that the rules are different when it comes to debts that are considered a higher priority, such as those relating to back taxes, student loans, and child support. In such cases, the government agency or creditor can garnish one’s wages without getting a court judgment, and the maximum garnishment amount may be considerably higher, too.  

What Constitutes Disposable Income and Gross Income for the Purposes of Wage Garnishment?

The amount that may be ultimately garnished from wages depends on one’s income, either gross or disposable.

The disposable income against which a wage garnishment order may be issued is the amount of income left over after amounts required by law to be withheld, meaning taxes, social security, and unemployment insurance, are subtracted.  

In this respect, one needs to bear in mind that any deductions not required by law, such as health insurance or voluntary retirement contributions, are not included in the calculation.  

Accordingly, gross income is the amount earned before any of the deductions set out above are made . Even though garnishment laws are different in each state, generally speaking, most government-administered benefits, such as state pensions and Social Security benefits, cannot be garnished by a judgment.  

Under New York State and Federal law, Social Security benefits, disability payments, retirement funds, child support, and alimony cannot be garnished for most types of debt, including private debt. Specifically, the kinds of income and benefits that can’t be taken by a creditor and are protected from debt collection include [6]:

  • Supplemental Security Income,  
  • Social Security,  
  • Public Assistance (welfare),  
  • spousal support,  
  • maintenance (alimony) and child support ordered by a court,  
  • unemployment benefits,  
  • disability benefits,  
  • workers compensation benefits,  
  • veterans benefits,  
  • railroad retirement benefits,  
  • black lung benefits,  
  • public and private pensions,  
  • retirement savings (like a 401(k) and individual retirement accounts),  
  • private trust fund principal and 90% of any payments,  
  • 90% of one’s salary earned in the last 60 days.

The State of New York has an Income Execution Payment Calculator [7] to help you determine the payment amount due per pay period on an income execution (wage garnishment). However, and to ensure that a wage garnishment order will not have an insurmountable impact on your financial (and overall) well-being, and to assist you in sound financial planning, you should ask for accurate professional guidance on the amounts likely to be garnished from your income.  

Can Someone Face Multiple Wage Garnishments?

Even though an employee may be subject to multiple income execution orders, garnishment limits apply to the cumulative value of all garnishments (the total amount taken from your check) sought by multiple creditors in a given pay period .  

In other words, attention must be paid to the fact that the maximum legal amount of earnings that can be garnished relates to the total of all judgment creditors, rather than to each individual creditor. Consequently, one needs to ensure that, should a second wage garnishment be ordered in relation to the same paycheck, the related amount should not be in excess of the maximum amount permitted by law, which should take into account the amount taken in the first garnishment. Under federal law, if one has more than one garnishment, the total amount that can be garnished is limited to 10% of gross wages or 25% of disposable wages, whichever is less [8].

In practical terms, the way multiple garnishments work out is by having the first creditor take the maximum amount until the related debt is paid off, at which point the second creditor is then allowed to begin the same process.

The Process of Wage Garnishment, in a Nutshell

Creditors wishing to receive payments for private debts by garnishing part of a debtor’s wages must first obtain a judgment to this effect from the courts.  

If a creditor’s debt collection suit is successful, it sets out the precise amount of the debt in question, as well as the amount that is to be garnished from the debtor’s wages.  

A notice of income execution is then sent to a New York City Marshal, confirming that the creditor has obtained the judgment and can begin garnishing the debtor’s wages. A copy of said income execution must be served within 20 days by the Marshall to the debtor, who will then have 20 days to contact the Marshal to set up a voluntary payment plan.  

If no such contact is made, the Marshal then has the right to serve the income execution to the garnishee (meaning the debtor’s employer), so that the debt can begin to be withheld directly from the debtor’s paycheck and sent to the creditor. The garnishee will then have 15 days to start the payments and, more often than not, an employer will notify the employee that a garnishment has been served. Following the commencement of wage garnishments, the Marshall will send the debtor account notifications from time to time, with information on how much of the debt has been paid since the garnishment began and how much of it is still left.

In view of the fact that garnishment orders entail involuntary payment procedures that can also be burdensome for employers, i.e. garnishees, federal law offers some protection for employees, who cannot be fired simply because their wages are garnished (15 U.S.C. § 1674). Nevertheless, this protection only applies when an employee is being garnished for a single debt. If one’s wages are being garnished for two or more debts, employers have the option to fire the indebted employee if they decide to do so.  

Several States have additional rules in place: under New York state law, employers cannot fire, refuse to promote, or take any negative action against employees, solely because of an income execution [9].  

As relevant laws differ from State to State, and are constantly subject to change, it is always highly recommended to seek specific advice in this respect.

Bank Account Garnishment in New York

Court actions for bank account garnishment for unpaid debts is usually a last resort action that creditors may choose to take in cases where debtors fail to respond to repeated requests to settle debts . In this respect, it is important to note that, while federal and state laws protect wages before they are paid into employees’ bank accounts, wages and other funds may be subject to seizure once deposited in the bank account, unless there are applicable state laws to the contrary.  

New York is one of the few States where judgment creditors (meaning creditors, or their debt collectors, who have attained a judgment against a debtor for unpaid debts) are required to take certain steps before being able to levy against or restrain a debtor’s bank account.  

The Exempt Income Protection Act (EIPA) of New York sets limits to the ability of a creditor to restrain, or “freeze,” bank accounts. If no exempt funds can be identified in the bank account, any amount over the $1,950 (as of 2022) that is present in a debtor’s account can be frozen, including money in a savings account.  

In certain cases, such as when an account includes directly deposited government benefits and other types of income that are exempt from creditors, this protected amount may go up to $2,625 (as in 2022). To this effect, banks are under obligation to analyze funds in related accounts and ensure that they do not contain exempt funds.  

At the same time, judgment creditors must issue exemption forms to the bank, which are to be issued to debtors, as well as address any claimed exemptions appropriately. Nevertheless, it must be stressed that a debtor’s bank account may be frozen upon a request filed by a creditor, until exempt and non-exempt funds are separated, leaving debtors without access to their funds in the account for a considerable amount of time.

In practice, if wage garnishment is taking place for delinquent debts at the maximum amount, it is unlikely that the debtor’s bank account will be frozen as well, meaning that the remaining wages after maximum garnishment would be exempt from debt collection, even if they are deposited into a bank account.

Can a Wage Garnishment Be Stopped in New York?

Once a wage garnishment notice is received by a debtor, it means that a creditor has obtained a judgment against them. Indeed, once the relevant documentation is served to the debtor and the garnishee (the employer), the creditor will continue to garnish wages until the full repayment of the debt or unless the debtor takes some active measure to stop the garnishment.  

An income execution judgment can only be lifted by vacating it in court. In order to do this, one has to file court papers and appear in court, at least once, either with or without a lawyer. If the judgment is vacated, the court can order the creditor to return all earnings back into the debtor’s account and the garnishment is then over.  

If one chooses not to vacate or is denied the vacatur, there is still an option of seeking a modification of the garnishment order, by filing an “ Order to Show Cause “. In this event, submitting proof showing why the debtor cannot afford to lose out on the amount set out in the garnishment order, such as proof of income, rent, bills, and other monthly necessities, may play an important role in succeeding to have the order modified, so as to allow for sufficient income to cover those necessities. A judgment may also be vacated on procedural grounds: if the debtor can duly prove that the papers of the lawsuit were not properly served, for example, it is likely that this will suffice.  

It is crucial to receive accurate and effective consultation to address income executions, given that wage garnishment to collect a debt will inadvertently make it (even more) difficult to cover regular living expenses and the legal framework may differ across states.

Stopping Garnishment by Filing for Bankruptcy  

Another way that may enable a debtor to stop most wage garnishments, including wage and bank account garnishment—especially if facing multiple debts—would be filing for bankruptcy. One needs to carefully consider the available options, including whether to file for Chapter 13 bankruptcy or file for Chapter 7 bankruptcy , as the effect this will have on the particular kind of debt(s) one owes differs considerably.  

One of the benefits of filing for bankruptcy is that it may stop many garnishment types, while also erasing other debts in the process and creating a disincentive for creditors to seek more garnishment orders from a particular debtor . In this way, the debtor is normally allowed some time (and invaluable breathing space!) to consider matters, while the trustee overlooking the case examines the bankruptcy petition and related debts, assets, and income.  

In accordance with the U.S. Bankruptcy Code [10], filing for bankruptcy puts into place an automatic injunction called an “automatic stay”. The stay stops most creditors (including collection agencies and certain government entities) from commencing new actions or continuing actions to collect debts while the bankruptcy case is in progress. It has immediate effect from the moment one files for bankruptcy, irrespective of which type of bankruptcy they file for, and it applies to individuals as well as entities. Again, attention must be paid to the fact that certain types of high priority debts, such as child support and alimony, may still be subject to garnishment, even during the period when the automatic stay is in effect.

Even though an automatic stay offers considerable relief and an opportunity to consider the situation and find a realistic solution for addressing it, it is not an absolute, final answer. It is temporary in nature, it might last only for as little as 30 days if this is not the first time someone has filed for bankruptcy, and there is also a possibility that it may not even be put in place at all if you have improperly filed multiple bankruptcies in the past year. This is to prevent people from abusing the bankruptcy process. Moreover, creditors retain the option of asking the court to allow wage garnishment to continue, provided they are able to show that there is a good reason for doing so. Bankruptcy forces those creditors to “come to the table” for a final resolution under the Bankruptcy Code, instead of garnishing wages. It gives you, as a bankruptcy debtor, back some power to determine what will be discharged altogether (wiped out) and what will be paid, as well as how much.

If you are facing financial difficulties and are worried about their effects on your income, or if you are already subject to garnishments, you may wish to receive specialist professional advice to assist you with financial planning and addressing related court orders. Our legal team here at Roemerman Law can help you explore available options and make the most of the related tools available to you .

Contact Roemerman Law today for a free consultation

[1] https://www.nclc.org/images/pdf/special_projects/covid-19/IB_Wage_Garnishment_Covid_and_Beyond.pdf

[2] https://www.fdic.gov/regulations/laws/rules/6000-900.html

[3] https://www.tax.ny.gov/enforcement/collections/ie_calc.htm

[4] https://codes.findlaw.com/ny/civil-practice-law-and-rules

[5] https://www8.tax.ny.gov/IEPC/iepcStart

[6] https://www.nycourts.gov/courthelp/Aftercourt/exemptIncome.shtml

[7] https://www8.tax.ny.gov/IEPC/iepcStart  

[8] https://www.law.cornell.edu/uscode/text/15/1673 (15 U.S.C. § 1673)

[9] https://www.nysenate.gov/legislation/laws/CVP/5252

[10] https://usbankruptcycode.org/

Experienced New York Bankruptcy Attorneys

When life happens and you’re looking for a top bankruptcy attorney in New York, Roemerman Law is here to help you recover from financial misfortunes. We can protect your home from foreclosure and stand up for you in court during a civil lawsuit brought against you by your lender.

If things do not go as planned, you have the security that Roemerman Law will provide sound legal advice to straighten out your financial position. We have the tools, knowledge, and expertise to challenge banks and other lenders in court.

Likewise, if you are facing foreclosure or if bills, credit card debt, and other payments are stressing your finances, we are here to reassess your options, advise you on loan modifications, and find the solution that best fits your financial standing and income.

Whether it’s a Chapter 7 , Chapter 11 , or Chapter 13 bankruptcy filing, we will be your bankruptcy lawyer, guiding you throughout the process and giving you the best legal advice for your interests.

Do I Need a Personal Bankruptcy Attorney?

As bankruptcy lawyers and attorneys, we have often stood in court, looking around us and seeing homeowners losing their homes or their other property because of poor, or no, legal representation. We have felt for them. Homeowners are real people who deserve real solutions for their problems.

While banks and financial institutions have big legal teams fighting for their interests, homeowners and financially stressed individuals often try to solve their problems on their own. However, they don’t know the bankruptcy filing system, their options, and the consequences of each decision.

That’s why people need a bankruptcy lawyer who will explain all their available choices. For example, most of our clients are surprised to learn that foreclosure is a measure of last resort and is definitely not the only solution available.

We will discuss our clients’ financial situation and sources of income and come up with a detailed plan to save their homes or decrease their personal or credit card and medical debt.

With a bankruptcy law firm like Roemerman Law by your side, you know your interests are well protected. You can stand up to your lender and find a financial result that protects you and your family.

NYC Bankruptcy and David Roemerman

We have the expertise, tools, and legal experience to fight on your behalf.

David Roemerman used to be a Wall Street attorney. He founded Roemerman Law to represent small businesses but then discovered how underrepresented homeowners are in their fight against financial institutions during foreclosure procedures. David Roemerman is part of these people: they are real to him, with real-life problems. These financially stressed people deserve a fresh start rather than a push down.

By representing these people, Roemerman Law is leveling the field to help homeowners defend their rights and protect their lives.

As a law firm, we have often asked ourselves what our clients need. We have discovered that, aside from proper and sound legal advice, they need peace of mind. They need to know that their case is in good hands and they don’t have to stress over every phone call or mail coming through the post.

Our clients also want to understand what is going on with their case and what solution will best protect their assets and income. That’s why we always explain the whole process and their options in layman’s terms.

We don’t want to impress our clients; we want to help them feel secure. Our clients don’t know the process for filing for bankruptcy in New York City. They want to know what is happening, how to declare bankruptcy in NY, what the bankruptcy process entails, and what their options are. We don’t simply explain how to declare bankruptcy in NY; we give back our clients their dignity and self-respect. This is the most precious and valuable gift any law firm can offer.

Did you know that Abraham Lincoln, Ulysses S. Grant, Walt Disney, and Mike Tyson have all utilized bankruptcy to help them right their financial ships?

Bankruptcy is nothing to feel ashamed of . Unexpected things happen. Life happens. When we take out a mortgage, we don’t anticipate a long stretch of unemployment, a costly divorce, a death in the family, or a sickness that increases medical bills. These unexpected setbacks can leave you underwater and financially off balance for decades and cause you to miss mortgage, bill, and credit card payments.

People deserve a fresh start. We believe they should be given the opportunity to rearrange their finances and restart their lives. No one wants people living in their cars or selling off their belongings. Our society is better and stronger when people feel secure and can take care of themselves.

Roemerman Law makes sure homeowners and people are given the right to a fresh start. If your interests are not properly represented in a judicial hearing, how can you restart your life?

If you have lost your home or your creditworthiness has been damaged, how can you find a job and care for your loved ones?

By getting proper and reliable legal advice, you can take the necessary steps to rebuild your life. If you are lost in a sea of paperwork and forms you don’t understand, how can you sign them and navigate the complex bankruptcy court? Don’t give away parts of your life without a fight!

How Much Does It Cost to File for Bankruptcy?

The American legal system has developed a range of tools to help people overcome unexpected calamities.

This has resulted in several kinds of bankruptcy, each with its own benefits and challenges. For example, most people are familiar with foreclosure. However, this is a measure of last resort, as you could file for Chapter 7 or Chapter 13 bankruptcy instead.

There are many ways to recoup your financial health. You don’t need to lose your home and belongings and you certainly don’t need to lose your dignity and self-respect. With Roemerman Law, you will have the proper legal advice and all options presented to you to choose the one that best suits your needs.

Before you can decide which kind of bankruptcy is right for you, you should understand what your options are.

Foreclosure

When you buy your home from a financial institution, you promise to pay your lender a certain sum each month until you repay them the money they lent you to buy your home, with interest. In exchange, you give them a mortgage, the right to seize and sell your house, or “foreclose,” if you fail to fully repay the loan.

If you miss your mortgage payments, the bank will start the foreclosure process. During foreclosure, you will be asked to pay your missed payments. Otherwise, your home will eventually be sold at auction, usually at a below-market price, leaving you with a deficiency judgment, meaning you owe the difference between the amount still owed on the loan and the below-market sale price.

In the state of New York, where we practice, the foreclosure process can only be done through the courts : the process is supervised by a court that issues a final judgment authorizing the sale of your home and approving any deficiency, an amount you will still owe even after losing the home. The court can also approve the foreclosure and set the day for the auction of your home.

Roemerman Law knows how the legal system works and how to protect your interests. We know that banks and financial lenders don’t like to foreclose on homes because it’s costly to them and time-consuming. They want homeowners to keep their homes and pay their mortgages.

With your bankruptcy lawyer by your side, you can establish what your other options are, besides foreclosure. These can be to modify the terms of the loan, for example by extending it. We can go to court and have the case dismissed on legal grounds. Or we can slow down the foreclosure process to give you time to re-evaluate your options and find suitable alternatives.

The only thing we ask of you is not to ignore any paperwork, letter, or email sent to you from your mortgage lender. The more time we have to devise our legal strategy, the better your chances of finding a solution that does not lead to foreclosure or the loss of your home.

Chapter 7 bankruptcy is used by individuals and companies to “wipe the slate clean” and start fresh. Any assets that are not “exempt” under the Bankruptcy Code are seized and sold , or “liquidated.” The proceeds are then distributed to the creditors. At this point, an individual usually has most of their debts discharged and starts fresh, while a company is unwound and closed.

A company filing for Chapter 7 often has assets liquidated. However, this is the exception rather than the rule, in personal Chapter 7 bankruptcies, meaning that most individual debtors keep all of their property.

Chapter 13 gives you the option to re-organize your finances by restructuring your debt. If you have fallen behind on some payments, you can ask to pay the arrears in installments in the next 3 to 5 years. The court will take into consideration your disposable income, creditworthiness, and other issues to establish a realistic repayment plan.

With Chapter 13, you get to keep your belongings and home as long as you make your monthly payments.

If you have fallen behind on your mortgage payments, you can file for Chapter 13 before your home is foreclosed. If your disposable income can safely cover your current monthly mortgage payments as well as your arrears, filing for Chapter 13 can save your home.

The Benefits of Bankruptcy

Although going bankrupt is not pleasant, choosing this option could have several benefits for you.

For example, losing your home could make financial sense if the value of your home is lower than what you owe your bank. By going bankrupt, you don’t have to pay more for something that is worth less.

A bankruptcy can also be an opportunity for a new beginning. As bills and unpaid expenses pile up, Chapter 7 or Chapter 13 can help you re-organize your finances and make a fresh start.

Carrying a heavy financial burden for years can be debilitating and drag down your family and business. You could lose your car, your home, and your sanity by trying to make payments that simply cannot be made with your disposable income.

In most cases, Chapter 7 bankruptcy can help you protect your home. You may have to sell other assets and belongings, but your home is the last to be touched. Most courts will exempt your family home and your bankruptcy lawyer will guide you through the proceedings to make sure your most precious real estate asset is safe.

With Chapter 13, you can protect both your belongings and your property: basically, you save all your personal assets. Filing for bankruptcy is sometimes the only way to ensure a new beginning. Your creditworthiness takes a temporary hit but, in the long term, bankruptcy can be the only rational—and responsible—thing to do.

With the help of an experienced bankruptcy attorney, you will be able to navigate the legal framework and get as much as possible from what the legal system provides for you.

Instead of giving in to your bank or your financial institution, have someone who will stand up for you and make sure your interests are protected.

Contact Attorney Dave Roemerman today to help you protect your interests.

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Wage Garnishments

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Garnishment means taking something away. Wage garnishment is how creditors can collect a debt. They get funds withheld (not given to you) directly from your paycheck. If you fail to pay your credit card debt or a medical bill, you can be sued by the creditor. 

Generally, the creditor needs to get a court order before it can garnish your wages. In New York, wage garnishment is also called an  income execution . The creditor will send a notice of income execution to an enforcement officer. In the five boroughs of New York, the enforcement office is the New York City Marshal. In other parts of the state, the enforcement officer is the county’s sheriff. New York City has a sheriff, but the sheriff is usually involved in debts that are more than $25,000. 

Federal law and New York state law limit the amount of money creditors can garnish. So, your entire paycheck can’t be withheld. Wage garnishment laws also exempt (leave out) certain income.

Last Reviewed: May 19, 2023

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Wage Garnishments

What is a wage garnishment?

A wage garnishment occurs when a court or the government orders your employer to set aside some of your earnings to pay a debt.

How much of my wages can be garnished for a private debt?

The amount of your wages that can be garnished for a private debt varies according to your income. Private debts include credit cards, bank loans, and private student loans. Private debts do not include child support, taxes, or government student loans. Note that under New York State law , your wages cannot be garnished by a health care provider for a medical debt.

If your disposable income is $480.00* per week or less: All of your earned income is exempt from debt collection. Your wages CANNOT be garnished. If your disposable income is more than $480.00* per week: The creditor may garnish up to 10% of your gross income or 25% of your disposable income for the week, whichever is less. However, the creditor may not reduce your weekly disposable income to less than $480.00 per week. *This amount is based on the $16/hour NYS minimum wage for NYC, effective 1/1/2024, as listed on the NYS Department of Labor’s website . This amount will also increase on 1/1/2025 and 1/1/2026. This amount may be different in other NYS counties. You can find the minimum wage applicable to your location on the NYS Department of Labor’s website . If you are already being garnished for child support or spousal support: You can still be garnished to pay a private debt, but the total garnishments cannot exceed 25% of your disposable income.

What is “disposable income”?

Your “disposable income” is the amount of money you take home after deductions required by law, such as deductions for taxes, Social Security, and unemployment insurance.

What is “gross income”?

Your gross income is the amount you earn before any deductions are made.

Can a creditor garnish my Social Security or other benefits to pay a private debt?

No.  Social Security and other benefits are completely exempt from debt collection and cannot be garnished to pay a private debt.

What is the process that a creditor uses to garnish my wages?

1.  All wage garnishments for private debts begin with a debt collection lawsuit .

2.  The creditor must obtain a judgment against you in order to garnish your wages.  In New York, the vast majority of judgments against consumers are obtained by default .

3.  Armed with a judgment, the creditor will send the wage garnishment notice to a New York City Marshal.  This notice is called an “income execution.”

4.  Within 20 days, the marshal must serve you with a copy of the income execution.

5.  Once you are served with the income execution, you have 20 days to call the marshal to arrange a voluntary payment plan.

6.  If you do not contact the marshal within 20 days, the marshal will serve the income execution on your employer.  Your employer will begin sending up to 10% of your gross earnings to the marshal.

7.  From time to time, the marshal must send you an accounting stating how much you have paid, how those payments have been applied, and how much you have left to pay.

What should I do if I receive a wage garnishment notice?

If you receive a wage garnishment notice, you can be sure that a creditor has obtained a judgment against you.  Therefore, you should consider whether you have grounds to cancel or vacate the judgment .  If you can vacate the judgment, the creditor will no longer have the ability to garnish your wages, nor can the judgment appear on your credit report. In order to vacate the judgment you will have to file court papers and appear in court at least once, and possibly more than once.  For most people, it is worth it to take the time and effort to vacate the judgment.   Look here for instructions on how to vacate a judgment.

If you do not wish to go to court, then you can always contact the marshal or your judgment creditor in order to make voluntary payment arrangments.

What should I do if my wages are already being garnished?

Even if your wages are already being garnished to pay a private debt, you may have the right to  vacate the judgment and stop the garnishment, especially if you were never properly notified of the lawsuit.  If the judgment is vacated, not only will the garnishment stop, but the court can order the creditor to return to you all the money that it took to pay the debt.

What if I can’t vacate the judgment, but I can’t afford a wage garnishment? Even if you choose not to try to vacate the judgment, you always have the right to go to court and ask the court to modify the amount of your garnishment.  To do this, go to the court with a copy of the income execution and tell the clerk that you want to file an “order to show cause” to modify the wage garnishment.   You should be prepared to explain to the court why the current garnishment amount is too high.  Bring proof of your income, rent, bills, and monthly expenses in order to prove to the judge that you should be garnished at a lower rate.  You should be prepared to show that the current rate of garnishment prevents you from paying for necessities, like rent, food, utilities, or necessary medical care.

Can a creditor garnish my wages and freeze my bank account at the same time?

Usually not.  If you are already being garnished at the maximum amount, then the rest of your wages are  exempt from debt collection , even if they are deposited in a bank account.

Can I be garnished for two debts at the same time?

Yes, but only up to the maximum amounts specified above .  Usually, what happens with multiple garnishments is that the first creditor takes the maximum amount possible.  The second creditor must wait until you finish paying the first creditor.  Only then can the second creditor garnish your wages.

Can my employer fire me because of a wage garnishment?

No, under New York law your employer cannot fire you for a garnishment.

More Information

How to Read a Civil Court Summons (PDF)

The Basics of Defending Creditor Lawsuits

Common Defenses to Creditor Lawsuits

Preparing for Your Court Date

Negotiating A Settlement Agreement in Court

Vacating a Default Judgment Frozen Bank Accounts What is Exempt from Debt Collection?

Helpful Links and Resources

LawHelp/NY : attorney referrals and information for pro se litigants

National Association of Consumer Advocates : national database of consumer lawyers

New York City Civil Court : information about representing yourself in court, including contact information and court forms

eCourts : information about cases filed in New York courts

Laws of New York : complete text of New York laws

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wage garnishment ny

New York Wage Garnishment Calculator

wage garnishment ny

You may have received a garnishment notice from your employer and wonder whether a wage garnishment calculator can help you estimate how much you will be garnished in New York. 

Wage garnishment in New York  is different from many other states, so how much will you be garnished?

Below is the New York wage garnishment that estimates how much you may be garnished. You can also compare 3 different options, how to stop wage garnishment, and the cost of those options. The calculator is free and does not even require an email address unless you’d like a free review of the data. Please note that this New York garnishment calculator is an estimate based on the laws below and may be different from the actual garnishment amount.

How Wage Garnishment in New York is Calculated

There are some states that do not allow wage garnishment, so those would not be in the calculator. Here are the specific New York wage garnishment laws that are factored into the NY wage garnishment calculator above.

"...an income execution for installments therefrom of not more than ten percent thereof may be issued and delivered to the sheriff of the county no amount shall be withheld from the judgment debtor's earnings pursuant to an income execution for any week unless the disposable earnings of the judgment debtor for that week exceed the greater of thirty times the federal minimum hourly wage prescribed in the Fair Labor Standards Act of 1938 or thirty times the state minimum hourly wage prescribed in section six hundred fifty-two of the labor law as in effect at the time the earnings are payable; (ii) the amount withheld from the judgment debtor's earnings pursuant to an income execution for any week shall not exceed twenty-five percent of the disposable earnings of the judgment debtor for that week, or, then amount by which the disposable earnings of the judgment debtor for that week exceed the greater of thirty times the federal minimum hourly wage prescribed by the Fair Labor Standards Act of 1938 or thirty times the state minimum hourly wage prescribed in section six hundred fifty-two of the labor law as in effect at the time the earnings are payable, whichever is less;"

Would the Garnishment Calculator Results be the Same in New York City as Rochester?

Let’s say that New York City has a higher minimum wage than Rochester or even that of New York. For example, New York minimum wage is $13.20. Could the calculation be different?

Many states take into consideration the federal minimum wage, and some states such as Maine may take into consideration state minimum wage, but that doesn’t mean the New York wage garnishment calculator would be different.

How Do Employers Calculate Wage Garnishment in New York?

Employers in New York may use the employer wage garnishment calculator to help estimate the garnishments amount for employees. Please note that the calculator feels a bit complex and not as simple to use.

Understanding New York Higher Order Priority in the Calculation 

First, the creditor requests a writ of execution from the New York court. Check an example New York writ of execution . Next, the court attaches an earnings withholdings to the write, which authorizes your employer to hold back money from your earnings.

Let’s say you have multiple earning withholding orders in New York that could include child support or alimony. Here’s the specific priority for the garnishment calculation in New York:

  • Wage and Earnings Assignment Order for Support
  • Earnings Withholding for Support
  • Earnings Withholding for Taxes
  • Earnings Withholding for Elder or Dependent Adult Financial Abuse
  • Earnings Withholding Order

Now that we understand how the wage garnishment calculator works, let’s talk about how to stop wage garnishment in New York.

Options to Stop Wage Garnishment in New York

There are a few options that you can pursue to potentially stop a wage garnishment. The wage garnishment calculator provides the option to compare your different options to stop a garnishment.

File an Objection or Exemption

First, you can try to object to the wage garnishment. When you receive your garnishment documents, you can find instructions on how to object to the garnishment including filing deadlines. If not, you can reach out to the clerk of the court or contact a lawyer to help.

You may also attempt to claim an exemption to the garnishment in some states as well.

In New York, you’d file this garnishment exemption form to request an exemption from your garnishment. Please note that this may be difficult to receive.

File For Bankruptcy

Filing for bankruptcy in New York may eliminate a wage garnishment a judgment related to unpaid debt, especially in those instances when individuals are already living paycheck to paycheck. There are two common consumer bankruptcies to consider.

Chapter 7 Bankruptcy

A Chapter 7 bankruptcy in New York is the most affordable and most common bankruptcy in the United States. It is also the fastest, but you could lose assets if the equity that you own in that assets is about the New York bankruptcy exemptions .

You also may have to qualify via the New York bankruptcy means test. Below are the New York median income guidelines for bankruptcy cases filed on or after May 15, 2022. Please note you would add an additional $9,900 for household sizes greater than 9.

Chapter 13 Bankruptcy

A Chapter 13 bankruptcy in New York is a payment plan based bankruptcy. It often lasts 3 or 5 years, and you can often protect your assets in bankruptcy even if they are above the exemption. You may consider a Chapter 13 bankruptcy if some of the payments from the wage garnishment would not be discharged in a Chapter 7 bankruptcy.

If you are considering a Chapter 13 bankruptcy in New York, you may also want to compare that option to debt settlement. While you don’t have creditor protection in debt settlement, this option can sometimes be cheaper and faster than a Chapter 13 bankruptcy.

How much does it cost to file bankruptcy in New York?

You may have taken the wage garnishment calculator and see that it would take out too much of your pay, but now you are wondering whether you could even afford bankruptcy. Thankfully, most attorneys take payment plans for the attorney fees. Some attorneys take most of the Chapter 13 bankruptcy payments in the plan.

While the cost to file bankruptcy in New York is less expensive for the Chapter 13 ($313 vs $338), the attorney fees may be triple what you would pay for a Chapter 7 bankruptcy.

Please note that the filing fees can be waived if your income is below certain poverty thresholds. Here’s the New York poverty thresholds below.

Negotiate a Settlement

You may attempt to negotiate a settlement if it’s an unpaid debt. That said, the creditor has the upper hand generally in this position, so you may not get a major discount from the owed debt. Realistically, you may not be able to negotiate a settlement or backpay for support such as spousal or child support.

What Should You Do?

One question to consider is whether you can afford the amount being taken from your paycheck and understand the duration of how much will be taken.

For example, let’s say you live in New York City or Buffalo and are dealing with rental inflation, gas, and food. Let’s say you aren’t able to afford the garnishment. In that case, someone may consider an option such as bankruptcy.

If you are able to afford the garnishment, others may allow it to run its course or try to negotiate. Regardless, you can take the wage garnishment calculator for New York to inform your decision.

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Suffolk County            Sheriff's Office

Dr. errol d. toulon, jr.                       suffolk county sheriff.

Suffolk County Sheriff's Office

Income Execution | Wage Garnishment

An income execution is a type of levy that may be issued against your wages if you fail to resolve your tax debt. It is a legal order that requires you or your employer to pay a portion of your gross wages for taxes you owe from your paycheck/salary. Issued by the NYS Courts, New York State will ask you to voluntarily pay up to 10% of your gross wages each time you're paid. If you don’t make voluntary payments, they will have your employer automatically deduct up to 10% of your gross wages from your paycheck and send it to us. The income execution remains in effect until the outstanding tax liability is satisfied.

If you fail to resolve your tax debt, New York State may proceed with collection action by issuing an income execution. They may file a tax warrant before or after we issue the income execution.  First, they will send the income execution to the address on file for you ( click here to change your address & update your personal information if needed.)

Generally, to comply with the income execution, you must:

You are required to make the first payment within 20 days of receiving the notice.

By law, wage deductions can't exceed ten percent: (10%) of gross income, or twenty five percent (25%) of disposable earnings.

You must make payments each time you get paid, whether that's weekly, bi-weekly, monthly, etc.

If you don't pay the required amount, your employer must deduct the money from your wages.

How to remove an income execution:

Pay the bill in full.

For more information on income execution and wage garnishments, please visit the New York State Website.

For driving directions to the Suffolk County Sheriff's Office Civil Enforcement Bureau, click here.

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Ruth Palacios and Arturo Xelo, a married couple from Mexico, work April 13, 2021, at their Queens, New York, fruit stand. The couple sued the contractor that had previously hired them, alleging their pay was cut without their knowledge. (AP)

Ruth Palacios and Arturo Xelo, a married couple from Mexico, work April 13, 2021, at their Queens, New York, fruit stand. The couple sued the contractor that had previously hired them, alleging their pay was cut without their knowledge. (AP)

Jefrey Canova

Does wage theft take $1 billion a year from workers in New York state?

If your time is short.

The $1 billion annual figure was cited in 2011 and 2014. Another study from 2017 found nearly $1 billion in annual losses from minimum wage violations, which are only one type of wage theft.

An estimate by the investigative journalism outlet Documented says the current figure for New York state is $1 billion to $4 billion.

Our mission: Help you be an informed participant in democracy. Learn more.

As New York state legislators consider passing tougher laws on wage theft — the denial of a portion of employees’ income by their employers — one assemblywoman put a figure on the amount the state’s workers lose annually.

Assemblywoman Linda Rosenthal, D-Manhattan, told the investigative news outlet ProPublica on Feb. 6 that "each year, more than $1 billion is stolen from the pockets of hardworking New Yorkers by unscrupulous employers, often targeting the workers with the fewest resources to fight back."

We found the figure in several analyses of this issue in recent years, including one from 2017 that Rosenthal’s office cited. The most recent estimate suggests that $1 billion may be on the low end.

Wage theft occurs when "workers are denied their legally owed wages and benefits," said Rebecca Berke Galemba, an associate professor at the University of Denver’s Josef Korbel School of International Studies.

Galemba said wage theft can take many forms, including being paid below minimum wage, being paid less than an employee’s work agreement, a denial of overtime or meal or rest breaks, improper or illegal deductions from the worker’s paycheck, the withholding of tips, the misclassification of workers and/or outright nonpayment of what workers are owed.

Jacob Barnes, a researcher with Rutgers University’s Workplace Justice Lab , said several kinds of businesses often stand out as having high rates of minimum wage violations. These include private households that employ domestic workers and groundskeepers; food service and drinking establishments; personal service providers such as beauticians, massage therapists, parking attendants and animal caretakers; and farms.

New York state already has laws to counter wage theft. The Wage Theft Prevention Act was signed into law in 2017 but was updated with stronger provisions in a bill Gov. Kathy Hochul signed in September 2023. The new provisions include tougher penalties against violators, categorizing a violation as larceny.

Rosenthal and other legislators, including state Sen. Jessica Ramos, D-Jackson Heights, want to enact additional legislation to strengthen the laws further.

S. 8451 would suspend certain liquor licenses of employers who commit wage theft. 

S. 8452 would give the state commissioner of labor, as well as the state workers' compensation board, the authority to issue stop-work orders if wage theft is discovered.

S. 8453 would give the state commissioner of taxation and finance the power to suspend certificates of authority of employers that violate wage-theft laws. 

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wage garnishment ny

The three measures remain under consideration in committee.

The earliest citation for the $1 billion figure can be found in a 2011 discussion at Cornell University’s Industrial and Labor Relations School.

During the discussion , which involved lawyers for plaintiffs and management along with wage enforcement officials, participants "agreed it was necessary to address the money — close to $1 billion — stolen from low-income workers each year," a program summary shows.

Esta R. Bigler, director of the Cornell school’s labor and employment law program and a participant in the 2011 discussion, told PolitiFact New York that she did not have updated wage theft statistics.

The $1 billion annual figure was cited again in a U.S. Labor Department analysis cited by ProPublica . The analysis compared New York workers’ reported wages to the relevant minimum wage levels. It found that employers took up to $1 billion from their workers annually. According to the analysis, New York ranked eighth-highest in the amount of back wages owed per worker.

A subsequent study, conducted in 2014 by the Economic Policy Institute , a labor-backed think tank in Washington, D.C., found that in the 10 most populous U.S. states, 2.4 million workers lost $8 billion in 2015 to minimum wage violations, or nearly a quarter of their earned wages, annually. The study found this type of wage theft affected 17% of low-wage workers.

The group found that in New York, workers lost $965 million from minimum wage violations that year, which is close to $1 billion. (This is the source Rosenthal’s office cited to PolitiFact.)

However, minimum wage violations are only one type of wage theft, so if that estimate is accurate, the total annual amount lost to wage theft in New York could be higher.

The most recent estimate , made in 2023 by the investigative journalism outlet Documented, is that New York state wage theft is $1 billion to $4 billion annually. This estimate is based on data from the New York state and U.S. labor departments that the outlet obtained through freedom of information and open records requests.

Rosenthal said, "Each year, more than $1 billion is stolen from" workers in New York state through wage theft.

The estimates of this figure span a decade and a half and come with a wide range of uncertainty.

But this figure, or one close to it, was cited in 2011, 2014 and 2017, and a 2023 estimate offered a range of $1 billion to $4 billion.

We rate the statement Mostly True.

Our Sources

ProPublica, " Proposed wage theft legislation would strip violators of their ability to do business in New York ," Feb. 6, 2024

ProPublica, " 127,000 New York workers have been victims of wage theft ," Aug. 22, 2023

New York state Senate, S. 8451 , S. 8452 and S. 8453 , accessed Feb. 19, 2024

Cornell University Industrial and Labor Relations School, " Preventing wage theft ," April 6, 2011

Economic Policy Institute, " Employers steal billions from workers’ paychecks each year ," May 10, 2017

GovDocs, " New York State wage theft law updated ," Oct. 25, 2023

Email interview with Esta R. Bigler, director of the Cornell school’s labor and employment law program, Feb. 12, 2024

Email interview with Rebecca Berke Galemba, associate professor at the University of Denver’s Josef Korbel School of International Studies, Feb. 12, 2024

Email interview with Jacob Barnes, researcher with the Workplace Justice Lab at Rutgers University, Feb. 16, 2024

Read About Our Process

The Principles of the Truth-O-Meter

Browse the Truth-O-Meter

More by jefrey canova.

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What is wage garnishment?

Laura Gariepy

Alana Rudder

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“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.

Updated 2:06 p.m. UTC Oct. 24, 2023

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When an employee defaults on debt or gets behind on other financial obligations, their creditors or other interested parties can take action, such as initiating a lawsuit or pursuing wage garnishment. 

“A wage garnishment is a legally mandated process whereby an employer withholds a portion of an employee’s wages to settle a debt or financial obligation. The most common types of wage garnishments are child support and tax levies,” says Kim Robinson, FPC and product manager at BambooHR.

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How does wage garnishment work?

Once a wage garnishment order gets issued, the employer will receive written notification from the court or government. The employer must comply with the order details and begin withholding and remitting a percentage of the employee’s pay to the appropriate entity. The employee will subsequently receive a smaller paycheck.

Types of wage garnishment 

Wage garnishment occurs when an employer must withhold and remit a percentage of an employee’s disposable earnings to a creditor. On the other hand, non-wage garnishment, also known as a bank levy, occurs when a creditor can directly seize funds from a debtor’s bank account. 

Just as there are funds that can’t get garnished from your pay, certain income is exempt from non-wage garnishment. For example, up to two months’ worth of Social Security or veterans benefits are protected from seizure.

How much can legally be garnished? 

Title III of the Consumer Credit Protection Act (CCPA) limits the percentage of disposable earnings that can be garnished per pay period. Disposable earnings are the funds left over after legally required deductions, like taxes and mandatory state retirement system contributions, get taken from an employee’s gross pay.

CCPA limits vary based on the specific situation. Here are several examples:

Important note: Garnishment limits don’t apply to certain debts, such as federal or state taxes. An employee can also exceed the limit under a voluntary wage assignment.

What are an employer’s responsibilities?

As an HR, payroll professional or business owner, there are several steps you need to take when you receive a wage garnishment notice:

  • Notify the employee that you received the wage garnishment notice. 
  • Respond to the notice by filling out and returning the enclosed form, if applicable. (You must still respond to the garnishment order if the named employee no longer works for your organization.)
  • Check your state’s wage garnishment laws. If they differ from Title III, follow whichever regulations favor the employee.
  • Start garnishing the employee’s wages per the order.

If your employee has multiple garnishments, they typically get paid out on a first-come, first-served basis. However, child support and tax garnishments take precedence over other debt.

Many states allow employers to recoup a small amount (generally a few dollars) to cover administrative costs for child support garnishment orders. Companies may be able to get nominally compensated for processing other orders, too.

What can an employee do about wage garnishment? 

If you’re an employee facing wage garnishment, you can:

  • Challenge it in court: File the appropriate paperwork with the clerk of court. Be sure to respond to the garnishment order quickly, as your window to contest the order may be small.
  • Try to work out an alternate payment arrangement with your creditor: The creditor may be willing to help you avoid garnishment through a payment plan or settlement.
  • File for bankruptcy : Doing so will pause collection efforts and shed the debt (not applicable to child or spousal support). Other types of debt, such as student loans or tax debt, may not get discharged.
  • Get professional help: The Consumer Financial Protection Bureau (CFPB) says it may be worth hiring an attorney who understands your rights and can possibly help you negotiate a favorable settlement with your creditor.

Until your employer is notified otherwise, it must withhold and remit earnings that are subject to a garnishment per the garnishment order.

Frequently asked questions (FAQs)

Federal law prohibits an employee from being fired for a single wage garnishment. However, employees with multiple garnishments aren’t protected under the legislation.

Wage garnishment is a mandatory, often court-ordered, seizure of a percentage of an employee’s earnings by a creditor. On the other hand, voluntary wage assignment is an optional transfer of earnings to a creditor that an employee elects to initiate.

Robinson says, “Income that can be garnished typically includes wages, salaries, bonuses, commissions and other earned income. Depending on the circumstances, things like rental income or retirement benefits may also be garnished.”

An employer should only stop garnishing wages under a few circumstances. Most commonly, the company will eventually receive an official notice revoking the garnishment order. The debt in the order may also get fully repaid or the garnishment period may end per the date listed in the order.

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

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Laura Gariepy

Laura started writing about personal finance in early 2018 when she took a sabbatical from her career in human resources and launched a blog discussing her journey. She realized she could earn a more lucrative and flexible living as a freelance writer, so she soon went all-in on being self-employed. Laura loves to write about managing your money, navigating your career, and running a successful business. Her work has been featured in Forbes, LendingTree, Rocket Mortgage, The Balance, and many other publications. She has also earned an MBA and a Bachelor's degree in Psychology.

Alana is the deputy editor for USA Today Blueprint's small business team. She has served as a technology and marketing SME for countless businesses, from startups to leading tech firms — including Adobe and Workfusion. She has zealously shared her expertise with small businesses — including via Forbes Advisor and Fit Small Business — to help them compete for market share. She covers technologies pertaining to payroll and payment processing, online security, customer relationship management, accounting, human resources, marketing, project management, resource planning, customer data management and how small businesses can use process automation, AI and ML to more easily meet their goals. Alana has an MBA from Excelsior University.

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IMAGES

  1. New York Wage Garnishment Form

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  4. Wage Garnishments: A Sensitive Legal Requirement

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  6. Wage Garnishment: Everything You Need Know on How to Handle It

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COMMENTS

  1. The Complete Guide to New York State Wage Garnishment Laws

    Table of Contents Is Wage Garnishment Legal in New York? How Debt Collection Lawsuits Lead To Wage Garnishment Who Can Garnish Your Wages Without a Court Judgment? How Much of Your Wages Can Be Garnished in New York for Private Debts? How Much of Your Wages Can Be Garnished for Tax Debt, Court-Ordered Support, and Student Loans?

  2. Income executions

    An income execution is a type of levy that may be issued against your wages if you fail to resolve your tax debt. We will ask you to voluntarily pay up to 10% of your gross wages each time you're paid.

  3. New York Income Execution Laws

    New York State wage garnishment laws, commonly called "income executions" in New York, provide borrowers with slightly more protection than federal law, allowing judgment creditors—those creditors who have sued and received a money judgment—to take up to 10% of your gross wages.

  4. New York State Garnishment Laws

    Most creditors must get a court order to garnish your wages if you live in New York. Two exceptions are garnishments for public debts — like past-due taxes — and family debts, like child support. The law limits how much of your weekly earnings a creditor can take through wage garnishment. These limits vary based on the minimum wage where you live.

  5. Wage Garnishment in New York

    In New York, wage garnishment is called an income execution. Federal law and New York state law limit the amount of money creditors can garnish. So, your entire paycheck can't be withheld. Wage garnishment laws also exempt certain income from garnishment. Who Can Garnish My Wages In New York?

  6. NYS Wage Garnishment: Getting it Released and How They Work

    The New York State law limits how much a creditor can garnish from your wages or income. There is more protection provided compared to federal law. This will be discussed further later on. When does a garnishment take place? Below are the following types of debt where the NYS can garnish your wages: Unsettled income tax

  7. Wage Garnishment & Frozen Bank Accounts

    The New York State minimum wage of $15 an hour means that $450 per week is protected from garnishments, rather than the $217.50 under Federal law. New York state law also has exemptions in place for debtors based on receipt of or, in the case of New York, eligibility for public assistance.

  8. Wage Garnishments

    New York City has a sheriff, but the sheriff is usually involved in debts that are more than $25,000. Federal law and New York state law limit the amount of money creditors can garnish. So, your entire paycheck can't be withheld. Wage garnishment laws also exempt (leave out) certain income. Learn More Was this information helpful?

  9. 13 Things To Know About The Process Of Wage Garnishment In NY And

    If your disposable income is between $217.50 and $290 per week: The creditor may garnish lesser of - 10% of your gross income OR 25% of your disposable income The amount you earn above $217.50 is usually less than 10% of your gross income If your disposable income is greater than $290 per week: The creditor may garnish the lesser of:

  10. Wage Garnishment in New York: 5 Things You Need to Know

    Filing for bankruptcy in New York may be common option to stop a wage garnishment because many people in New York cannot afford a garnishment when living check to check. Including wage garnishment bankruptcies, there were 16,723 bankruptcies filed in the year ending June 30, 2021.

  11. Wage Garnishments

    Note that under New York State law, your wages cannot be garnished by a health care provider for a medical debt. If your disposable income is $480.00* per week or less: All of your earned income is exempt from debt collection. Your wages CANNOT be garnished.

  12. New York Wage Garnishment Lawyers

    Generally, in New York State, a creditor can garnish either 10% of your gross wages or 25% of your disposable income, whichever is less. However, if your disposable income is less than 30 times the minimum wage, it cannot be garnished at all. In New Jersey and Pennsylvania, the laws are similarly written but slightly different.

  13. Collection Basics

    This is called garnishment. The Creditor fills out an Income Execution form and has it signed by the Court Clerk. Then the Creditor gives the Income Execution to an Enforcement Officer. Read People Who Collect the Debtor's Money.

  14. Wage Garnishment (Income Execution) in New York

    Wage Garnishment (Income Execution) in New York What Is Wage Garnishment (Income Execution)? Background "Effective December 11, 2015, the statutory provisions governing income execution pursuant to CPLR 5231 were amended to clarify and 'modernize' the process." Bienstock v. Rockland Cnty.

  15. New York Wage Garnishment Calculator

    Wage garnishment in New York is different from many other states, so how much will you be garnished? Below is the New York wage garnishment that estimates how much you may be garnished. You can also compare 3 different options, how to stop wage garnishment, and the cost of those options.

  16. NYS Open Legislation

    (a) Form. An income execution shall specify, in addition to the requirements of subdivision (a) of section 5230: (i) the name and address of the person or entity from whom the judgment debtor is receiving or will receive money; (ii) the amount of money, the frequency of its payment and the amount of the installments

  17. Wage Garnishment Lawyers

    New York City Wage Garnishment Attorney How to Handle an Income Execution in New York. Wage garnishment is the process of deducting money from an individual's income. Wage garnishment occurs when a court or the government orders an employer to set aside some of an employee's earnings to pay a debt. The amount that may be garnished for a ...

  18. Garnishing wages in New York

    It's important to note that the wage garnishment process in New York can be complex, and it is often advisable to work with an experienced collections attorney to ensure that the process is handled correctly. Feel free to call NYNJlitigators.com 212-684-5454 to discuss. Additionally, there are limits on the amount of wages that can be ...

  19. New York Garnishment LawsGarnishment Laws

    If you are an employee, your earnings can be attached through the wage garnishment - or in New York, the income execution - process. This means a sum certain can be taken directly out of your paycheck by the employer and paid over to the creditor who asserts a debt against you the employee.

  20. How to Stop Wage Garnishment in NY

    If you are struggling with debt in New York, contact the experienced and professional Hudson Valley bankruptcy lawyers at the Law Office of Taran M. Provost, PLLC for a free consultation on your case at 845-675-3243. To stop wage garnishment one can negotiate debt, exempt income, and/or file for bankruptcy.

  21. Exempt Income

    For example, if minimum wage is $13.00 an hour, if the debtor earns $390 per week or less after taxes, all of the money is exempt from garnishment. If the debtor earns more than $390, then 25% of the salary after taxes can be garnished. Only one creditor can garnish a debtor's salary at a time, no matter how many debts are owed.

  22. How To Stop Wage Garnishment in New York

    Wage Garnishment Happens in Two Stages: First - garnishment takes place with an enforcement officer sending a notice to the debtor. The notice states that garnishment will be sent to the employer after 20 days if they don't make the payment. To avoid the garnishment being sent to the employer, the debtor can pay the 10% of gross income ...

  23. Income Execution

    An income execution is a type of levy that may be issued against your wages if you fail to resolve your tax debt. It is a legal order that requires you or your employer to pay a portion of your gross wages for taxes you owe from your paycheck/salary. Issued by the NYS Courts, New York State will ask you to voluntarily pay up to 10% of your ...

  24. Does wage theft take $1 billion a year from workers in New York state?

    Rosenthal said, "Each year, more than $1 billion is stolen from" workers in New York state through wage theft. The estimates of this figure span a decade and a half and come with a wide range of ...

  25. What Is Wage Garnishment?

    Ordinary wage garnishment: Lesser of 25% or the amount that the employee's disposable earnings exceed 30x the federal minimum wage of $7.25 ($217.50) $1,000: $200: