Stopping Wage Garnishment in New Mexico

A wage garnishment allows a creditor to intercept a portion of your pay check each pay period until the debt you owe has been paid in full or until such time as you are no longer employed by that employer.  Until the judgment is paid in full, interest will accrue on the amount of the judgment.  In New Mexico, the interest on judgments is 8.75%. 

In most instances, the creditor must first obtain a judgment against you by suing you and winning the lawsuit.  However, certain government agencies, such as the IRS and state revenue departments, are entitled to garnish your wages without first obtaining a judgment against you.  Additionally, servicers of government backed student loans are authorized to garnish your wages without first obtaining a judgment against you. 

How Much Can Be Garnished in New Mexico?

It’s important that you know how the wage garnishment laws in your state work.  In New Mexico, a wage garnishment may not exceed 75% of weekly earnings or 40 times the federal minimum hourly wage, whichever is greater. 

Options for Stopping Wage Garnishments

There are a number of options available to stop wage garnishments.  

• Negotiate a Payment Plan – You may be able to negotiate a payment plan with the creditor.  In most instances, you will be required to authorize an automatic withdrawal from your account monthly or each pay period.
• Seek to Have the Judgment Set Aside – If you did not have notice of the lawsuit, it may be possible to have the judgment set aside.  If the court agrees that the creditor did not properly serve you with the lawsuit, the judgment against you will be thrown out and the creditor will have to re-file.
• File Bankruptcy – Filing bankruptcy will stop the garnishment immediately.  In order to resume garnishing your pay check, the creditor must receive permission from the bankruptcy court. 

Getting Legal Help

If you have received a Notice of Garnishment, you should speak with a debt settlement attorney as soon as possible.  A debt settlement attorney will review your case and advise you of your legal options.