How Much Can Creditors Garnish From My Paycheck in New York City?
If you are asking this question it’s likely that a creditor already has a judgment against you. If you are expecting a wage garnishment it’s probably the time to seek the advice of a bankruptcy attorney. Bankruptcy can stop wage garnishment from creditors, and can help eliminate other debts including taxes, student loans and domestic support obligations. Bankruptcy may not be in your best interests, but finding out if it could be right for your situation is quick and easy. We offer free consultations.
New York State law limits the amount of money a creditor can garnish from your paycheck. The law is intended to leave you with enough income to make ends meet but will force a sizeable chunk of your paycheck to be sent directly to your creditors. In most situations creditors can take no more than 10% of your gross earning, but for certain types of debt will be able to take much more. Strictly speaking a creditor can garnish the lesser of either 10% of your gross wages, or up to 25% of your disposable wages to the extent this garnishment does not impoverish you. Most creditors will need a court order of “income execution” in order to garnish your wages, but other creditors can garnish your paycheck without a court order at all. Without bankruptcy protection you could be automatically garnished for tax obligations, child support or alimony, or even defaulted student loans. These types of debts can garnish significantly more of your paycheck as well, up to 15% in the case of student loans, and as high as 60% for some child support back payments.
Dealing with a wage garnishments can be embarrassing for you and a real hassle for your employer. Some employers might even rather terminate your employment than comply with the garnishment. While there is some protection from losing your job over one wage garnishment, you are not protected from losing your job if you have multiple wage garnishments, and the sad truth is many people unable to pay their bills are already facing more than one garnishment. The idea of losing your job when you can’t pay your bills already can be terrifying, but there is help.
Bankruptcy can immediately halt any wage garnishment that you are expecting or that is already occurring, and can help get you back on your feet in a number of other ways as well. Bankruptcy has some consequences, but the consequences of wage garnishment are usually much worse. If you are concerned about garnishment and live in New York City get the facts for yourself. Contact the Law Office of William Waldner online or at 212.244.2882 to arrange a free consultation today. We only practice bankruptcy law and maintain a 99% Chapter 7 bankruptcy discharge record in New York City as of 8/31/16.
**** DISCLAIMER: This article is intended for educational purposes only. By reading no attorney-client relationship has been created. Prior results do not guarantee a similar result for future clients.