Debt from TN garnished in NY

[Amy Slater]

Jurisdiction

Tennessee

Hello, my question involves debt from TN and garnished in NY where the person will be living. My son has an unsecured loan and owes progressive leasing money. He lost his job and has decided to move back to NY and start over near his family. If he works and lives in NY and they garnish him for the debts incurred in TN how much will the garnishment be? Do they use federal minimum wage, TN or NY minimum wage? For example on a $600 weekly gross paycheck how much roughly would the weekly garnishment be? Thank you very much for any replies.

 

[army judge]

If he works and lives in NY and they garnish him for the debts incurred in TN how much will the garnishment be?

Federal law places limits on how much judgment creditors can take from your paycheck. The amount that can be attached is limited to 25% of your disposable earnings (what's left after mandatory deductions) or the amount by which your weekly wages exceed 30 times the minimum wage, whichever is lower.


<===>

Before anyone can attach a debtors' wages, the creditor must successfully sue the person in a court of law.

Then the person must follow certain administrative steps in the state where the lawsuit took place to validate the judgment.

If the debtor moves from TN to NY, the judgment holder must then domesticate the TN judgment in NY, before the debtor's earnings/assets can be levied against to satisfy the TN judgment in NY state.

Advise your relative NOT to discuss anything with the debtor over the phone, make sure everything he receives is in writing.

Ask him if he has been sued, where he was sued, and what documents he possesses relative to the alleged lawsuit.





The most that a creditor can levy from your wages in Tennessee: 25% of your disposable earnings for that week OR the amount by which your disposable earnings for the week exceeds 30 times the federal minimum hourly wage (currently $7.25/hour).

===

That said, to SPECIFICALLY answer your question regarding NY, read the following:

===

In New York State, a creditor can attach the lesser of 10% of your gross wages or 25% of your disposable income to the extent that this amount cannot exceed 30% of the minimum wage.

===

If your disposable income is less than 30 times the minimum hourly wage, it cannot be levied against.


<===>

 

[zddoodah]

If he works and lives in NY and they garnish him for the debts incurred in TN how much will the garnishment be?

In order for most creditors to garnish wages, the creditor must first sue and obtain a judgment. Once a judgment is obtained, it can be enforced in any way permitted by the applicable state law. The most common ways that judgments are enforced against individuals are bank levies and wage garnishments. Wage garnishments are limited by federal law to 25% of take-home pay (it may be even lower than that for very low income individuals). Some states may impose lower limits. I don't know if NY is one of those states, but it should be easy to find with some simple googling.

Do they use federal minimum wage, TN or NY minimum wage?

If he's living and working in NY, TN law will be of no relevance.