What wage garnishment exemptions are allowed in New York?

New York wage garnishment laws are limited by federal laws.These national laws werecreated to stop creditors from reaching too deeply into the pockets of the debtorsfrom whom they are collecting money.According to these federal laws, 75% of a debtor's disposable income is exempt from garnishment.Since this is a federal law it applies to all 50 states.Though some states in the union allow for a larger percentage exemption, noneare allowed to supersede the federal law and allow a creditor to take more than 25% of a debtor's weekly disposable income.

The New York state laws have an option where garnishment is allowed to be the lesser amount ofeither 10% of a debtor's gross income, or 25% of his disposable income. In the case where the debtor is having his wages garnished for child support and alimony the combined amount is not allowed to exceed 25% of his disposable income.

Though creditors may elect to use wage garnishment as a legal method of collecting on a loan, it still poses potential risk which they should be aware of. New York state doesn't allow for employers to fire an employee for because of a single judgment requiring a garnishment. However, should the employee receive more than one, this protection ceases to apply and the employer can legally let the employee go. Also, in many cases if the debt cannot be settled before a garnishment order applies, the employee will quit his job to avoid having his wages garnished. Another tactic used by debtors which is equally legal is to simply declare bankruptcy and thus sidestep the judgment completely.