Help! I was just served with a garnishment! NY

[clk355]

I have a lot of questions about my situation, but esp. this: if they end up garnishing my wages (probably), since the limit on gross in New York is 10%, does that mean TOTAL amount of gross which can be garnished is 10%? Or that each creditor can garnish 10%? Because it probably won't be the last garnishment and I'm worried. Also, if I do receive more garnishments, how does my employer process these? Do they send payment to each creditor, the sheriff, the court?

Thanks for all responses.

[dingdong]

Usually you can only have one garnishment in place at a time.

You would have to check your state's laws on garnishment, but if NY has a 10% cap, then that is most likely all they can take at one time. Your creditors would most lkely have to "wait in line" to get their piece of the garnishment pie, based on who files the proper paperwork first.


Check NY state laws on garnishment and you should be able to tell.

[clk355]

Thanks, I will check. Much appreciated. I'm already feeling better, lol.

[dingdong]

Found this.

: New York laws are quite simple when it comes to wage garnishment - no more than 10% of your gross income can be garnished. If you are subject to garnishment for unpaid alimony or child support, the combined garnishments are capped at 25% of your disposable earnings. New York wage garnishment law always gives priority to alimony, support or maintenance judgements.

To garnish a bank account is a bit more complicated and can only be applied if you are not gainfully employed. I don't know your story, but basically from what I have read, there are two things to consider,
- Social Security, disability or veteran's payments, are exempt from garnishment
- if you owe federal or state debt, such as back taxes, the government can go after all and any accounts and funds you may have

Supposedly, the New York Legislature has passed the bill that safeguards the first $2,500 in a debtor account if that account received protected electronic deposits in the 45 days prior to the bank's receipt of the restraining order. The bill also caps the number of possible account freezes at two per account per year. Not sure if your governor has signed it yet.

http://www.bad-credit-advisor.com/2009/02/new-york-wage-garnishment-laws-and-garnishment-of-bank-account.html

[treehugger1]

While the limit for NY might be 10% of gross, I think they still have to abide by the 25% of disposable as a max set by federal law. You would probably have to make a great deal of money to see difference, but some folks would.