${site.data.firmName}${SEMFirmNameAlt}
New Mexico Lawyers Serving New Mexico's Legal Needs Since 1997

New Mexico Law on Garnishment Withholding

In the previous blog post, the question of whether filing bankruptcy can stop a garnishment collection was addressed.  As discussed, many types of garnishments can be stopped by the mere filing of a bankruptcy case because an automatic stay will effectively suspend, if not end, any such collection. However, recovery of some priority debts via garnishment such as alimony or child support will not be stopped by the automatic stay.

 

In New Mexico, creditors cannot get a wage garnishment order until they obtain a court judgment stating that the debtor owes the creditor money. Creditors seeking to recover, for example, on credit card payments or charges in a hospital bill cannot garnish the debtor’s wages until they sue the debtor and win a judgment.

 

However, there are a few exceptions to this rule. A debtor’s wages can be garnished without a court judgment for:

 

  • unpaid income taxes

  • court ordered child support

  • child support arrears, and

  • defaulted student loans.

 

New Mexico, like other states, allows creditors to collect certain judgments or debts via the garnishment process.  But the state law places  limits on the amount creditors can take from a debtor’s income.  In New Mexico, they can either (a) garnish up to 25% of your wages to apply to your debts (b) or the amount by which the debtor’s weekly disposable earnings exceed 40 times the federal hourly minimum wage (currently $7.25/hour). For the purposes of determining the amount, “disposable earnings” are those wages left after your employer has made deductions required by law such as federal and state income taxes and social security deductions.

 

In Albuquerque, Giddens, Gatton & Jacobus, P.C. has bankruptcy attorneys who offer expert handling of Chapter 7, Chapter 11, Chapter 12 and Chapter 13 bankruptcy cases in New Mexico. The firm represents many debtors and creditors in Albuquerque, Santa Fe, Taos, Raton, Farmington, Gallup, Grants, Roswell, Los Lunas, Placitas, Belen and the rest of New Mexico. Contact Giddens, Gatton & Jacobus, P.C. at (505) 633-6298 to set up an appointment with one of its New Mexico bankruptcy lawyers or visit the firm’s website at giddenslaw.com. Giddens, Gatton & Jacobus, P.C. is located at 10400 Academy Road N.E., Suite 350 in Albuquerque, New Mexico.       

No Comments

Leave a comment
Comment Information

Watch our videos to learn of the many ways we can help you with your legal needs.

Email Us For A Response

How can We Help You?

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Locations

Firm Location:

Giddens, Gatton & Jacobus, P.C.
10400 Academy Road NE
Suite 350
Albuquerque, NM 87111

Phone: 505-273-3720
Fax: 505-271-4848
Map & Directions

Firm Numbers:

  • facebook
  • linkedin
  • gplus
  • twitter
Review Us