Legal Question in Credit and Debt Law in New York
Garnishment of Wages
A friend had a vehicle repossessed about six years ago, in which the finance company sold the vehicle at an auction. The auction price did not cover the full amount owed so now they have issued a judgement against them. This judgement states that they will garnish 10% of their wages until paid in full. Can the credit company do this? Thank you.
2 Answers from Attorneys
Re: Garnishment of Wages
A judgement filed with the county clerk remains valid for a period of 20 years and may be satisfied by a variety of collection devices incluiding garnishment of 10% of the judgment debtors wages.
Re: Garnishment of Wages
There is also a procedure to reduce the percentage, say to 5%, or to work out an installment plan, upon application to the court, showing hardship. Also, there are exemptions, which may take priority over a wage execution (garnishment), for example if the debtor has other judgments, or maybe child support obligations, etc.
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