Increased Protection For Persons With Judgments

With the increase in the minimum wage on Long Island comes increased protections for persons with judgments held against them. If a person has a judgment against them (Judgment Debtor), the Plaintiff who holds the judgment (or Judgment Creditor) can come after their wages or assets.

• If the Judgment Debtor is earning less than $480 per week after taxes, their wages cannot be garnished by a Judgment Creditor. If they earn more than $480 per week, then their income can be garnished at either a maximum of 10% of their income before taxes (gross) or a maximum 25% of their disposable income (net).

• If the Judgment Debtor has less than $3840 in their bank account, then their bank account cannot be frozen or restrained by a Judgment Creditor. If the amount in their bank account is more than $3840, then the amount over $3840 can be restrained with some exceptions.

As of November 23, 2022, Judgment Creditors who hold a judgment for medical debt cannot garnish the wages of a Judgment Debtor or place a lien on a judgment debtor’s primary residence. Additionally, there are many types of protected incomes including disability and retirement income. If you or a client is facing a wage garnishment or frozen bank account, please contact our Consumer Debt Legal Assistance Project.

NSLS Consumer Debt Legal Assistance Project provides legal assistance to persons who are experiencing consumer debt problems, especially in matters of medical and credit card debt. Nassau residents can call (516) 292-8100 and Suffolk residents can call (631) 232-2400 to be screened for assistance.