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 private debt varies according
to the employee’s income. Private debts include credit cards, medical
bills, bank loans, and private student loans.
The amount that may be garnished depends on an individual’s income.
The amount garnished for a private debt varies as follows:
- If your disposable income is less than $240.00 per week, all of your earned
income is exempt from debt collection and your wages cannot be garnished.
- If your disposable income is between $240.00 and $290.00 per week the creditor
may garnish the lesser of what is earned over $240.00 per week or 10%
of your gross income.
- If your disposable income is greater than $290.00 per week the creditor
may garnish the lesser of 10% of your gross income or 25% of your disposable income.
- If your wages are already being garnished for child support or spousal
support, a creditor may still garnish your wages but only up to 25% of
your disposable income.
Disposable income is the amount of money that is earned after deductions
are made for taxes, Social Security, and unemployment insurance. Gross
income is the amount of money earned before any deductions are made.
Wage garnishing begins with a debt collection lawsuit. The creditor must
obtain a court ordered judgment in order to garnish a borrower’s
wages. Once the judgment is entered, the creditor will send the wage garnishment
notice, or income execution notice, to a New York City Marshal. The Marshall
must serve a copy of the income execution on the borrower within twenty
days. Upon service, the borrower has twenty days to resolve the matter
before garnishment will begin. If this does not occur, the marshal will
serve the income execution on the borrower’s employer. The employer
will then begin sending 10% of the borrower’s gross earnings to
Stopping Wage Garnishment
If you receive a wage garnishment notice, attempting to vacate the judgment
against you would likely be the best option. Even if your wages are already
being garnished to pay a private debt, you may still be able to vacate
the judgment against you. The best way to stop wage garnishment is through
a vacated judgment. If this is done properly the creditor will no longer
have the ability to garnish your wages because the judgment which allows
them to do so has been removed. The judgment should also no longer appear
on your credit report. In the event that the judgment is vacated, the
court can also order the creditor to return money it took previously to
pay the debt.
If you decide not to attempt to vacate the judgment, you may ask the court
to modify the garnishment. In order to modify the order, you must bring
a copy of the income execution to the court and file an order to show
cause with the court clerk. The court will expect an explanation as to
why the current garnishment is too high and will expect proof of your
income, rent, bills, and monthly expenses. As this is a complicated process,
it is highly advisable to retain an
experienced debt attorney to assist you in the wage garnishment modification or vacated judgment process.