Stop Wage Garnishment in New York: Your Rights and Options

A creditor just got a judgment against you. Now they want a piece of every paycheck until the debt is paid. In New York, that could mean losing hundreds of dollars each month—money you need for rent, groceries, and bills.

But here's what most people don't know: New York has some of the strongest wage protection laws in the country. The state caps garnishment at 10% of your gross income or 25% of your disposable income, whichever leaves you more money. That's lower than the federal cap. And there are multiple ways to challenge, reduce, or stop a garnishment entirely.

If you're facing garnishment,or if a lawsuit could lead to one,you need to act now. The window to respond is short, and missing deadlines costs you leverage.

How Much Can Creditors Take from Your Paycheck in New York?

New York Civil Practice Law & Rules § 5231 sets strict limits. Creditors can garnish the lesser of:

• 10% of your gross income, or
• 25% of your disposable income

Disposable income means your paycheck after mandatory deductions: federal taxes, state taxes, Social Security, Medicare, and retirement contributions. Voluntary deductions like health insurance or 401(k) contributions don't count.

There's also a floor: garnishment can't drop your weekly income below 30 times the federal minimum wage ($7.25 as of 2025). That's $217.50 per week. If you earn less than that after garnishment, the creditor gets nothing.

Example: You earn $800 per week gross. After taxes, your disposable income is $650. Ten percent of gross income is $80. Twenty-five percent of disposable income is $162.50. The creditor can take $80,the lower amount.

Higher Limits for Child Support and Taxes

These protections don't apply to all debts. Child support can take up to 50% of your disposable income if you're supporting another child or spouse, or 60% if you're not. Add another 5% if you're more than 12 weeks behind.

The IRS and New York Department of Taxation follow their own rules. Tax garnishments (called levies) can leave you with as little as the exempt amount listed on IRS Publication 1494,often just enough to survive. Federal student loans can take 15% of your disposable income without a lawsuit.

How Wage Garnishment Works in New York

Most creditors can't touch your paycheck without a court order. Here's the process:

1. The creditor sues you. You get served with a summons and complaint. You have 20 or 30 days to respond, depending on how you were served.

2. You lose (or ignore) the lawsuit. If you don't file an answer, the creditor wins by default. If you do respond but lose, the court enters a money judgment.

3. The creditor gets an income execution. This is a court order directing your employer to withhold money from your pay. The creditor files a form called an Income Execution (Form EF-9a) with the court.

4. A marshal or sheriff serves your employer. In New York City, a city marshal delivers the paperwork. Upstate, it's usually a county sheriff. Your employer now has a legal duty to start withholding.

5. Garnishment begins. Your employer sends a portion of each paycheck to the marshal, who forwards it to the creditor (minus a fee). This continues until the debt is paid or you take action to stop it.

The whole process,from judgment to first garnishment,can take as little as 30 days.

Five Ways to Stop Wage Garnishment in New York

Once garnishment starts, you're not powerless. You have options, and the sooner you act, the more control you keep.

1. Challenge the Garnishment with an Exemption Claim

New York law protects certain income from garnishment entirely. File a Notice of Exemption (Form EF-16) if any of these apply to you:

• You receive Social Security benefits, SSI, unemployment, workers' comp, or public assistance
• You're a veteran receiving VA benefits
• Your income is below the statutory minimum (currently 30 times the federal minimum wage per week)
• The debt comes from a source that can't legally garnish (like most healthcare providers as of 2022)

You must file this form with the court and serve a copy on the creditor. The garnishment should pause while the court reviews your claim. If approved, the garnishment stops and you may get back money already taken.

2. Negotiate a Payment Plan

Before garnishment starts,or even after,you can contact the creditor or their attorney and propose a voluntary payment plan. If they agree, they'll file a "Satisfaction of Judgment" or stipulation with the court to stop the income execution.

Why would a creditor agree? Garnishment costs them money. Marshals charge fees. Employers sometimes fight back. A reliable $200-per-month payment plan is often more attractive than gambling on garnishment.

Get any agreement in writing. Make sure it specifies that the creditor will withdraw the income execution once you've made X payments or paid Y dollars.

3. Settle the Debt for Less

Many creditors will accept a lump sum that's less than the full balance, especially if they've already spent time and money on the lawsuit. Offer 40-60% of the judgment amount if you can scrape together cash from family, a side job, or a tax refund.

The creditor files a Satisfaction of Judgment once they accept payment. The garnishment ends immediately. This works best if you act fast,before the creditor has already collected significant money through garnishment.

Need help negotiating? Our bankruptcy screener can connect you with attorneys who also handle debt settlement.

4. Vacate the Default Judgment

If you never responded to the lawsuit because you didn't receive proper notice,or you had a valid reason for missing court,you can file a motion to vacate (set aside) the judgment. New York courts will reopen cases if you show:

• You have a reasonable excuse for not responding, and
• You have a meritorious defense (a legitimate reason you don't owe the debt)

Examples of reasonable excuses: You never received the summons, you were hospitalized, or the creditor served the wrong address. Examples of defenses: The debt is past the statute of limitations, you already paid it, or the amount is wrong.

If the court vacates the judgment, the garnishment stops and you get a second chance to fight the case. You'll need to file your motion within one year of the default judgment in most cases.

5. File for Bankruptcy

Bankruptcy stops wage garnishment the day you file. The automatic stay,a federal injunction,blocks creditors from collecting debts, including through income executions. Your employer must stop withholding once they receive notice of your bankruptcy case.

Chapter 7 bankruptcy wipes out most unsecured debts (credit cards, medical bills, personal loans) in about four months. Chapter 13 replaces garnishment with a court-approved payment plan that lasts three to five years. Both options stop garnishment immediately.

Bankruptcy isn't right for everyone, but if you're facing multiple lawsuits or garnishments from different creditors, it may be the fastest path to relief. Start with our bankruptcy guide to see if you qualify.

What Happens to Money Already Garnished?

If you successfully stop the garnishment,whether through an exemption claim, settlement, or bankruptcy,you might be able to recover money the creditor already took. But the rules vary.

In bankruptcy, the trustee can sometimes claw back wages garnished within 90 days before filing. In a successful exemption claim, the court may order the creditor to return money that was exempt all along. In a settlement, you can negotiate for the creditor to refund recent garnishments as part of the deal.

Act quickly. The longer garnishment continues, the harder it is to recover those funds.

Can Your Employer Fire You for Wage Garnishment?

Federal law (15 U.S.C. § 1674) prohibits employers from firing you because of a single garnishment. If you're garnished for two or more debts, that protection disappears.

New York law doesn't add extra protections, but wrongful termination claims are hard to prove. Most employers tolerate garnishment because the law requires them to comply. Still, multiple garnishments make you a higher-cost employee. That's another reason to resolve the debt quickly.

How to Avoid Wage Garnishment Before It Starts

The best defense is responding to the lawsuit before the creditor gets a judgment. Once you're served:

File an answer within 20 days (or 30 if served by mail). You don't need a lawyer to file a basic answer. Admit what's true, deny what you dispute, and assert affirmative defenses like statute of limitations or improper service.

Show up to court. Even if you owe the debt, appearing gives you negotiating power. Creditors often settle on the courthouse steps to avoid trial.

Negotiate before judgment. Once the creditor has a judgment, their incentive to settle drops. Before that, they're worried you might win or drag the case out. Offer a payment plan or lump sum settlement.

If you missed the deadline to answer but haven't been served with a judgment yet, you may still have time. Call the court clerk to check the case status and ask if you can file a late answer.

New York's 2022 Hospital Garnishment Ban

As of December 2022, nonprofit hospitals in New York cannot garnish wages or place liens on your primary residence to collect medical debt. This law (S.6522A/A.7363A) applies only to hospitals, not to private collection agencies that buy hospital debt.

If a hospital garnished your wages before the law took effect, you might be able to challenge it. If a debt collector (not the hospital itself) is garnishing you for old hospital debt, the ban doesn't apply,but you still have the standard exemptions and defenses.

What If You Live in New York But Work in Another State?

Garnishment law depends on where you work, not where you live. If your employer is based in New Jersey or Connecticut, New York's 10% cap doesn't apply. You're subject to that state's garnishment limits,usually the federal maximum of 25% of disposable income.

The creditor must domesticate (re-register) the New York judgment in the state where you work, but that's a straightforward process. You'll need to fight the garnishment under that state's exemption rules.

The Bottom Line

New York limits wage garnishment more strictly than most states, but creditors can still take 10% of your gross income or 25% of your disposable income,whichever is less. If that's more than you can afford, you can file an exemption claim, negotiate a settlement, challenge the judgment, or stop it entirely through bankruptcy. The key is speed. The longer you wait, the more money leaves your paycheck and the fewer options you have left.