Wage garnishment legal in New York State?
Is Wage Garnishment in New York legal?? Please read the entire question before jumping to answer. I have been informed by a very credible source that New York state does NOT allow wage garnishment for unsecured debts like credit card debts. (Taxes, child support, and federal student loans are different, I know). I wanted to hear it from a second source to be absolutely sure, the internet does not have anything on this specific question. Does New York state allow collection agencies to garnish wages for unpaid past due credit card debts? I know in most states, once the judgment is obtained wages can be garnished. Please answer only if sure and only if you know where New York state stand on this. (What happens in other states does not matter at all.)
I don’t understand why everyone is failing to understand the question. I already know what are the general steps in the process, what I don’t know is whether all those are true in New York state. The key words is NEW YORK!
Like this post? Subscribe to my RSS feed and get loads more!
APpears they have limited powers but they can:
I found this about NY Wage Garnishment:
New York Wage Garnishment
The maximum amount recoverable is ten percent (10%) of gross income, or the federal maximum, whichever is less.
If the debtor is subject to garnishment for alimony, support or maintenance, the combined garnishments cannot exceed twenty-five percent (25%) of disposable earnings.
Income executions are prioritized by order of delivery to the Sheriff, but garnishments for alimony support or maintenance always take priority.
The execution is a two-stage process. First, the sheriff serves the execution on the debtor at his or her residence. If the debtor does not begin making payments within twenty (20) days, the sheriff levies on the employer
http://www.fair-debt-collection.com/…hments.html#33
Federal law exempts from garnishment 75% of disposable earnings per week, or an amount up to thirty times the federal minimum hourly wage (currently $5.15), whichever is greater. Some states still have wage garnishment laws in place; however, when the federal law provides a larger exemption than the state law, the federal law supersedes the state law.
http://www.bcsalliance.com/y_debt_st…nishments.html
It looks like Unsecureds are placed in the order they file. If you owe a Priority payment, Priority payments get preference. You might have to pay more than 10%, up to a max of 25% with the Priority payments being paid first.
Sounds like, if all you have are Unsecureds, 10% is all they can take.
Once a house is Foreclosed upon, the underlying property that Secured the loan is gone. The deficiency balance then becomes an Unsecured. If you owe more than 1 Creditor, Creditors will be paid on a first come, first served basis, up to the 10% limit. Or the Federal limit. Whichever Exemption is greater.
As always, you’ll want to confirm that info with an attny.
And specifically from the NY state law code:
ยง 5201. Debt or property subject to enforcement; proper garnishee. (a)
Debt against which a money judgment may be enforced. A money judgment
may be enforced against any debt, which is past due or which is yet to
become due, certainly or upon demand of the judgment debtor, whether it
was incurred within or without the state, to or from a resident or
non-resident, unless it is exempt from application to the satisfaction
of the judgment. A debt may consist of a cause of action which could be
assigned or transferred accruing within or without the state.
(b) Property against which a money judgment may be enforced. A money
judgment may be enforced against any property which could be assigned or
transferred, whether it consists of a present or future right or
interest and whether or not it is vested, unless it is exempt from
application to the satisfaction of the judgment. A money judgment
entered upon a joint liability of two or more persons may be enforced
against individual property of those persons summoned and joint property
of such persons with any other persons against whom the judgment is
entered.
(c) Proper garnishee for particular property or debt.
1. Where property consists of a right or share in the stock of an
association or corporation, or interests or profits therein, for which a
certificate of stock or other negotiable instrument is not outstanding,
the corporation, or the president or treasurer of the association on
behalf of the association, shall be the garnishee.
http://public.leginfo.state.ny.us/menugetf.cgi