Creditors can't set up new wage garnishments on consumer debts

In response to the COVID-19 pandemic, the New Mexico Supreme Court has issued an order directing all lower courts to stop issuing any new writs of wage garnishment against employees on consumer debt claims. The court's order recognizes the "extraordinary circumstances presented by the current public health emergency" and seeks to balance New Mexicans' needs to pay for essentials.

How writs of garnishment work

When a civil judgment is entered against an employee, the creditor (the party to whom the debt is owed) may garnish wages to satisfy the ruling. The process requires the creditor to serve the employer with a court-issued writ of garnishment, which provides notice that the employee has a judgment entered against him and gives instructions.

The employer also will receive an answer form to fill out and file with the court. The form will ask the employer to confirm the judgment debtor is an employee and will include a worksheet to determine the amount of wages to be garnished. Once the process is completed, the court will order the company to withhold the calculated portion of the employee's paycheck and send the amount directly to the creditor.

Order covers only consumer debts