A wage garnishment occurs when a court or the government orders your employer to set aside some of your earnings to pay a debt.
The amount of your wages that can be garnished for a private debt varies according to your income. Private debts include credit cards, medical bills, bank loans, and private student loans. Private debts do not include child support, taxes, or government student loans.
If your disposable income is less than $217.50 per week:
All of your earned income is exempt from debt collection. Your wages CANNOT be garnished.
If your disposable income is between $217.50 and $290 per week:
The creditor may garnish the LESSER of:
- Whatever you earn above $217.50 per week; OR
- 10% of your gross 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% of your gross income; OR
- 25% of your disposable income.
10% of your gross income is usually less than 25% of your disposable income.
If you are already being garnished for child support or spousal support:
You can still be garnished to pay a private debt, but only up to 25% of your disposable income.
Your "disposable income" is the amount of money you take home after deductions for taxes, Social Security, and unemployment insurance.
Your gross income is the amount you earn before any deductions are made.
No. Social Security and other benefits are completely exempt from debt collection and cannot be garnished to pay a private debt.
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 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.
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.
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.
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.
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.
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.
Your employer cannot fire you if you are garnished for the first time. However, your employer may be able to fire you if you have a second garnishment.
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?
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
The Legal Aid Society, When The Creditor Sues, What Are My Rights? (PDF)
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