Stop Wage Garnishment in New York City and New York State
What Is Wage Garnishment?
Wage garnishment happens when a creditor collects a debt directly from your paycheck after winning a judgment against you in court. In New York, the legal term is an “income execution” under the New York Civil Practice Law and Rules (CPLR § 5231).
If your wages are garnished, 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 or Supreme Court.
2. Judgment – If you do not respond or lose the case, the court enters a judgment against you.
3. Income Execution Issued – The creditor requests an income execution under CPLR § 5231.
4. Marshal or Sheriff Notice – You first receive notice of the income execution. You have 20 days to arrange voluntary payment before it goes to your employer.
5. Employer Deduction – If still unpaid, your employer must legally withhold money from each paycheck and send it directly to the creditor.
How Much of Your Paycheck Can Be Taken?
– Maximum Garnishment: The lesser of:
• 25% of your disposable earnings (your pay after mandatory deductions like taxes), OR
• The amount by which your weekly wages exceed 30 times the federal minimum wage (currently $7.25/hour, so $217.50 per week).
For example:
– If your disposable earnings are $600/week, the maximum garnishment is $150/week (25%).
– If you earn $250/week, only $32.50 can be garnished, because you must be left with at least $217.50.
Citations: 15 U.S.C. § 1673 (Consumer Credit Protection Act) and CPLR § 5231.
What Income Is Exempt From Garnishment?
New York and federal law protect certain income sources completely. These exempt incomes cannot be taken by creditors:
– Social Security benefits (42 U.S.C. § 407)
– Supplemental Security Income (SSI)
– Unemployment benefits (N.Y. Labor Law § 595; CPLR § 5205)
– Disability benefits
– Workers’ compensation
– Public assistance and welfare
– Veterans’ benefits
– Child support and spousal support you receive
– Retirement pensions in most cases
If your wages are garnished but your income comes from these exempt sources, you may be considered judgment-proof, meaning creditors cannot legally collect from you.
How Long Does Wage Garnishment Last?
Wage garnishment continues until the full judgment is paid — which could take years, depending on the size of the debt and how much is taken each paycheck. Interest also accrues during this time in New York at 9% annually (CPLR § 5004), meaning your balance can grow even while you’re paying.
How Quickly Can It Be Stopped?
At Georgiou Law, we know time is critical when your paycheck is being taken. Here’s what happens when you call us:
1. Immediate Review: We review your case the same day to determine if exemptions apply or if the judgment can be challenged.
2. Court Action: We can file motions to vacate the judgment (especially if you were never properly served) or to claim exemptions.
3. Negotiation: We contact the creditor’s attorneys directly to arrange a settlement or voluntary payment plan that halts the garnishment.
4. Timeline: Most wage garnishments can be stopped in 2–4 weeks from when you hire us. In clear exemption cases, we may be able to stop deductions even faster.
Can My Employer Fire Me for Wage Garnishment?
No. Under 15 U.S.C. § 1674, your employer cannot fire you just because one creditor is garnishing your wages. However, if multiple creditors garnish your wages, protections may be limited.
What Georgiou Law Can Do for You
As a New York debt defense and settlement firm, Georgiou Law focuses exclusively on protecting consumers from aggressive creditors. Here’s how we help:
– Stop Wage Garnishment Immediately: We move quickly to protect your paycheck through court and negotiation.
– Negotiate Lower Settlements: Because our founding attorney is a former bank lawyer, we know how creditors think — and how to settle debts at a fraction of what’s owed.
– Challenge Improper Judgments: If you were never properly served or the creditor lacks proper documentation, we fight to have the judgment vacated.
– Protect Exempt Income: We ensure creditors respect your rights under CPLR and federal law.
– Comprehensive Debt Defense: Beyond wage garnishment, we defend you in lawsuits, negotiate settlements, and hold collectors accountable under the Fair Debt Collection Practices Act (FDCPA).
Frequently Asked Questions (FAQs)
How do I know if a wage garnishment is legal?
A wage garnishment is legal only after a court judgment. If you never received court papers, we may be able to challenge it.
Can I negotiate a settlement once garnishment has started?
Yes. In fact, creditors may be more willing to settle once garnishment begins. Georgiou Law regularly negotiates favorable settlements that stop garnishment.
What if my only income is exempt?
If your only income is from Social Security, unemployment, or other exempt sources, we can assert your exemption and have the garnishment lifted.
How long will it take for my employer to stop taking money once the garnishment is lifted?
Once the court or creditor issues a stop notice, your employer should adjust your paycheck in the next pay cycle.
Should I act if I just received a wage garnishment notice but deductions haven’t started yet?
Yes — this is the best time to act. If you call us right away, we may be able to stop the garnishment before your first paycheck is taken.
Take Action Now – Protect Your Paycheck
If your wages are being garnished in New York City or anywhere in the 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 help you settle your debt once and for all.