Wage Garnishment

Stop Wage Garnishment in New York City and New York State

What Is Wage Garnishment?

Wage garnishment — legally called an “income execution” under CPLR § 5231 — happens when a creditor collects a debt directly from your paycheck after winning a judgment against you in court.

If your wages are subject to an income execution, your employer is required to withhold part of your earnings and send them to the creditor. This continues until the full judgment amount — plus interest and fees — is paid. For many New Yorkers, wage garnishment makes it nearly impossible to cover rent, food, transportation, and other essentials.

Read the full text of CPLR § 5231 here: https://www.nysenate.gov/legislation/laws/CVP/5231

How the Wage Garnishment Process Works in New York

1. Creditor Lawsuit — A creditor or debt buyer (such as a bank or collection agency) files a lawsuit against you in New York Civil Court or Supreme Court.
2. Judgment — If you do not respond to the lawsuit or lose the case, the court enters a money judgment against you.
3. Income Execution Issued — The creditor obtains an income execution under CPLR § 5231.
4. Notice to You — You receive the income execution first. Under CPLR § 5231(d), you have twenty days to begin making voluntary payments directly to the creditor before the income execution is served on your employer.
5. Employer Deduction — If you do not arrange voluntary payments within twenty days, the income execution is served on your employer, who must then legally withhold money from each paycheck and send it to the creditor.

How Much of Your Paycheck Can Be Taken?

Under CPLR § 5231(b), the maximum amount that can be withheld is the lesser of:

• 10% of your gross income, or
• 25% of your disposable earnings (your pay after mandatory deductions such as taxes and Social Security), but only to the extent that your disposable earnings exceed thirty times the federal minimum wage per week.

This means New York applies whichever limit leaves you with more take-home pay. The 10%-of-gross-income cap is a New York protection that is more favorable than the federal limit in many cases.

Example: If your gross weekly income is $800 and your disposable earnings are $600:

• 10% of gross = $80
• 25% of disposable = $150
• The maximum garnishment would be $80 (the lesser amount).

If your disposable earnings are close to the statutory minimum floor (currently thirty times the federal minimum wage, or $217.50 per week), even less — or nothing — may be taken.

Citations: CPLR § 5231(b); the federal floor is established by 15 U.S.C. § 1673(a) and incorporated by CPLR § 5231(b).

What Income Is Exempt From Garnishment?

CPLR § 5205 protects certain income and property from enforcement of money judgments. Under § 5205 and related provisions, the following income sources are exempt — meaning creditors cannot reach them:

• Social Security benefits
• Supplemental Security Income (SSI)
• Unemployment insurance benefits
• Disability benefits
• Workers’ compensation benefits
• Public assistance
• Veterans’ benefits
• Child support and spousal support you receive
• Retirement and pension benefits (in most cases)

If your only income comes from exempt sources, you may be judgment-proof — meaning creditors cannot legally collect from you even if they hold a judgment.

Citation: CPLR § 5205.

How Long Does Wage Garnishment Last?

An income execution remains in effect until the full judgment is satisfied — which could take months or years, depending on the size of the debt and how much is withheld each pay period. Interest accrues on the judgment at the statutory rate of 9% per year under CPLR § 5004, meaning your balance can grow even while you are paying.

How Quickly Can It Be Stopped?

At Georgiou Law, we know time is critical when your paycheck is being taken. Here is what happens when you call us:

1. Immediate Review — We review your case the same day to determine whether exemptions apply or whether the judgment can be challenged.
2. Court Action — We can file motions to vacate the judgment under CPLR § 5015 (for example, if you were never properly served with the lawsuit) or to claim exemptions under CPLR § 5205 and § 5231(e).
3. Negotiation — We contact the creditor’s attorneys directly to negotiate a settlement or voluntary payment arrangement that halts the income execution.
4. Timeline — Most wage garnishments can be stopped within two to four weeks from the date you retain us. In clear exemption cases, we may be able to stop deductions even faster.

Can My Employer Fire Me for Wage Garnishment?

No. Under federal law (15 U.S.C. § 1674), your employer cannot terminate you because your wages are subject to garnishment for any one debt. However, this federal protection may be limited if multiple creditors garnish your wages.

Note: This protection is federal, not state. New York does not have a separate CPLR provision on this point.

What Georgiou Law Can Do for You

Georgiou Law, PLLC is a New York City consumer debt defense law firm. We represent consumers — we are not a debt settlement company or debt relief program. Here is how we help:

• Stop Wage Garnishment — We move quickly to protect your paycheck through court motions and direct negotiation with creditors.
• Negotiate Lower Settlements — Our founding attorney is a former bank lawyer who understands how creditors evaluate cases — and how to settle debts for less than what is owed.
• Challenge Improper Judgments — If you were never properly served or the creditor lacks proper documentation, we file motions under CPLR § 5015 to have the judgment vacated.
• Protect Exempt Income — We ensure creditors respect your rights under CPLR § 5205 and applicable law.
• Comprehensive Debt Defense — Beyond wage garnishment, we defend you in creditor lawsuits, negotiate settlements, and hold debt collectors accountable under applicable consumer protection laws, including the Fair Debt Collection Practices Act (FDCPA).

Frequently Asked Questions (FAQs)

How do I know if a wage garnishment is legal? An income execution is legally valid only after a court has entered a judgment. If you never received the lawsuit papers (known as the summons and complaint), the judgment may have been entered improperly, and we may be able to challenge it under CPLR § 5015.

Can I negotiate a settlement once garnishment has started? Yes. In many cases, creditors are willing to negotiate a settlement even after an income execution is in place. Georgiou Law regularly negotiates settlements that result in the garnishment being stopped.

What if my only income is exempt? If your only income comes from Social Security, unemployment insurance, or other sources exempt under CPLR § 5205, we can assert your exemption and seek to have the income execution vacated.

How long will it take for my employer to stop taking money once the garnishment is lifted? Once the court issues an order or the creditor issues a notice stopping the income execution, your employer should adjust your paycheck in the next pay cycle.

Should I act if I just received an income execution but deductions haven’t started yet? Yes — this is the best time to act. Under CPLR § 5231(d), you have twenty days before the income execution goes to your employer. If you call us right away, we may be able to stop the garnishment before your first paycheck is affected.

Take Action Now — Protect Your Paycheck

If your wages are being garnished in New York City or anywhere in New York State, don’t wait another payday. Every week that passes is money you may not get back.

Call Georgiou Law, PLLC today at (917) 764-3072 for a free consultation. We will protect your paycheck, fight back against creditors, and work to resolve your debt.