State Debt Laws
New York Debt Collection Laws
Garnishment limits, exemptions, and consumer protections specific to New York
New York (NY) - At a Glance
| State Consumer Protection Law | New York City Administrative Code (NYC) + NY GBL § 601 |
| Source | NY GBL § 601; NYC Admin. Code § 20-490 et seq. |
| Covers Original Creditors? | YES - covers original creditors too |
| Max Wage Garnishment | 10% of disposable earnings (federal minimum; may be lower) |
| Bank Levy Exemption | $3,600 in bank (or 2.5x federal minimum wage x 60 days) |
| Homestead Exemption | $89,975 - $179,975 (county-based) |
Key Protections in New York
- NY GBL § 601 covers original creditors
- NYC DCWP rules cover all NYC debt collection
- Very low wage garnishment: 10% or federal minimum wage, whichever is less
- High bank account exemption
- Cannot collect on debt more than 6 years old in small claims court
Wage Garnishment in New York
After a court judgment, creditors in New York can garnish up to 10% of your disposable earnings (earnings after legally required deductions). This is the federal cap - New York follows federal law on this limit.
Exempt from garnishment: Federal benefits (Social Security, SSI, VA benefits) cannot be garnished by private creditors regardless of state law.
File a Complaint in New York
If a debt collector violates the FDCPA or New York City Administrative Code (NYC) + NY GBL § 601:
- File with the New York Attorney General
- File with the CFPB
- Consult a consumer attorney (FDCPA violations = attorney fees paid by collector)