Q: What are the wage garnishment laws in New York state? Also can my bank account be garnished? One of my creditors has just obtained a judgment and I need to know what to expect … if I should clean my account up.

A: 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.