An income execution notice in NYC means a judgment creditor has started the process of collecting money from your income.

For many employees, the notice threatens deductions of up to 10% of gross wages.

But the first notice does not always mean money has already left your paycheck. New York law creates limits, and Chapter 7 bankruptcy may stop qualifying garnishments through the automatic stay.

Key Takeaways:

• An income execution can generally reach up to 10% of gross income.

• The marshal usually gives the debtor a first-stage opportunity before serving the employer.

• Chapter 7 can stop most garnishments tied to dischargeable consumer debts.

What Does an NYC Income Execution Notice Mean?

An income execution is New York's procedure for collecting a money judgment from income.

A creditor normally cannot garnish your paycheck simply because you missed payments.

The creditor generally must first obtain a judgment.

The creditor can then deliver an income execution to an enforcement officer, such as an NYC Marshal.

New York uses a two-stage process.

During the first stage, the marshal serves the income execution on you. You have an opportunity to make the required installment payments without involving your employer.

If you fail to make those payments for 20 days, the enforcement officer can generally serve the income execution on the source of your income. Your employer must then withhold the required amount.

New York Civil Practice Law and Rules § 5231 specifically provides for this process and limits ordinary income executions to no more than 10% of gross income (New York CPLR § 5231 – Income Execution).

The NYC Department of Investigation describes the same two-stage procedure for City Marshals. It explains that employer payroll deductions begin after the debtor defaults on the first-stage payments. (NYC Department of Investigation – Marshals' Judgments FAQ)

This timing matters.

If you received the notice at home but your employer has not received it, you may still have time to review your options before payroll deductions begin.

Can the NYC Marshal Always Take 10% of Your Paycheck?

No. Ten percent of gross income is a maximum for an ordinary income execution, not an automatic deduction in every case.

New York also protects a minimum level of earnings.

For 2026, New York City's minimum wage is $17 per hour.

CPLR § 5231 protects weekly disposable earnings up to 30 times the greater applicable federal or New York minimum wage.

For an NYC worker in 2026, 30 × $17 equals $510 per week.

“Disposable earnings” does not simply mean your normal take-home pay. It generally means earnings remaining after deductions required by law, such as taxes.

Consider this example.

You earn $1,000 gross each week.

Ten percent would equal $100.

But suppose your disposable earnings after required deductions are $550.

The income execution generally cannot reduce those disposable earnings below $510. In that example, the permissible deduction could be limited to $40 rather than $100.

New York law also limits deductions based on 25% of disposable earnings and coordinates income executions with certain support deductions.

There is another major exception.

New York law currently prohibits income executions on judgments arising from medical-debt actions brought by qualifying hospitals or healthcare professionals.

So do not assume every document demanding 10% is legally entitled to take 10%.

Review:

• Your gross wages

• Your legally required deductions

• The type of debt

• The judgment amount

• Existing child or spousal support deductions

• Whether another income execution already exists

• Whether the judgment itself is valid

If the amount exceeds legal limits, CPLR § 5231 allows a debtor to ask the court to modify the income execution.

Can Chapter 7 Stop an Income Execution That Already Started?

Yes, filing Chapter 7 generally stops most ordinary wage garnishments immediately through the automatic stay.

The automatic stay begins when a bankruptcy petition is filed in most cases.

It generally prevents creditors from continuing collection activity involving pre-bankruptcy debts.

That includes many wage garnishments.

The U.S. Courts explains that while the Chapter 7 automatic stay remains effective, creditors generally may not continue lawsuits, wage garnishments, or collection demands (U.S. Courts – Chapter 7 Bankruptcy Basics).

Suppose a credit card company obtained a $15,000 judgment.

A marshal then served an income execution.

Your employer begins withholding $130 from each weekly paycheck.

If you qualify for Chapter 7 and file before the next deduction, the automatic stay can generally stop further collection on that judgment.

The creditor, marshal, and employer need notice of the bankruptcy.

Timing matters because money already collected before bankruptcy may require a separate analysis.

Chapter 7 also does not stop every type of wage deduction.

Certain obligations receive different treatment, including:

• Child support

• Spousal support

• Certain taxes

• Some other nondischargeable debts

The type of underlying judgment therefore matters as much as the garnishment itself.

If the execution involves credit cards, personal loans, collection accounts, or another potentially dischargeable judgment, review whether you qualify for Chapter 7 in Manhattan before more paychecks are affected.

An income execution is a warning with a clock attached. The earlier you review the judgment, the more options you may have before payroll deductions continue.

What Should You Do After Receiving an Income Execution Notice?

Start by identifying the judgment behind the notice.

Do not focus only on the 10% deduction.

Ask:

• Who obtained the judgment?

• Which court entered it?

• How much is allegedly owed?

• When was the judgment entered?

• Were you ever served with the original lawsuit?

• Has your employer already received the execution?

• What type of debt created the judgment?

This information determines your next move.

Option 1: Review Whether the Garnishment Amount Is Legal

Check whether your income falls below New York's protected threshold.

Also check whether other deductions affect the permissible amount.

A court can modify an income execution when appropriate under CPLR § 5231.

Option 2: Investigate a Default Judgment You Never Knew About

Some New Yorkers first discover a lawsuit when their wages are garnished.

If you never received the original summons, you may have grounds to ask the court to vacate the default judgment.

New York Courts explains that improper service can provide a basis for reopening a default judgment. If the judgment is vacated, the creditor loses the judgment it was using for enforcement unless it later wins the reopened case. (New York Courts – Vacating a Default Judgment)

Do not claim improper service unless the facts support it.

Get the court file and review the affidavit of service.

Option 3: Consider Chapter 7 Before More Wages Are Taken

If the judgment is one part of a larger debt problem, fighting one garnishment may not solve the underlying issue.

You may also have:

• Credit card balances

• Personal loans

• Collection lawsuits

• Bank restraints

• Old utility debts

• Multiple judgments

Chapter 7 can address many qualifying unsecured debts together rather than negotiating with each creditor separately.

The automatic stay can also stop most qualifying collection activity once the case is filed.

That can protect future paychecks while the bankruptcy proceeds.

Stopping one deduction helps this paycheck. Eliminating the dischargeable judgment can solve the debt behind the deduction.

FREQUENTLY ASKED QUESTIONS

Q: Does an income execution mean my employer already knows about the judgment?

A: Not necessarily. New York generally uses a two-stage income execution process. The first stage involves serving the debtor and allowing required payments before the employer becomes involved. If you default for the required period, the enforcement officer may serve your employer. Check the notice immediately to determine which stage you have reached.

Q: Can an NYC Marshal take more than 10% of my gross wages?

A: An ordinary New York income execution generally cannot exceed 10% of gross income. Additional limits based on disposable earnings and minimum-wage protections may reduce the amount further. Separate rules can apply to obligations such as child support. Review the specific execution rather than assuming every payroll deduction follows the ordinary 10% rule.

Q: How quickly does bankruptcy stop wage garnishment?

A: The automatic stay generally takes effect when a valid Chapter 7 petition is filed. It can stop most continuing garnishments involving ordinary pre-bankruptcy consumer debts. The creditor, marshal, and employer should receive notice promptly. Some debts and repeat bankruptcy filings can involve exceptions, so timing and case history should be reviewed before filing.

Q: Can I recover money already taken from my paycheck?

A: Possibly, but filing bankruptcy does not automatically return every dollar garnished before the filing date. Whether previously garnished money can be recovered depends on timing, amount, bankruptcy rules, exemptions, and whether the creditor had already received the funds. A bankruptcy attorney should review recent paystubs and garnishment records before making that determination.

Stop the Garnishment Before Another Paycheck Is Hit

An income execution can turn an old judgment into an immediate household-budget problem.

Ten percent of gross income can mean hundreds of dollars every month.

If the debt is part of a larger financial problem, paying the marshal indefinitely may not provide a real solution.

The Law Firm of Howard Williams can review the income execution, underlying judgment, Chapter 7 eligibility, and whether bankruptcy could stop the garnishment.

Contact the Law Firm of Howard Williams for a free consultation

About Howard Williams

Howard C. Williams is the founder of The Law Firm of Howard Williams in San Diego, California. He earned his J.D. from Western Sierra Law School and has been admitted to practice in California since 2009. His practice covers personal injury — auto, motorcycle, truck and rollover collisions — along with criminal defense and Chapter 7 bankruptcy. He is a member of the San Diego County Bar Association, Consumer Attorneys of San Diego, and the National Association of Consumer Bankruptcy Attorneys.