Wage garnishment in New Mexico

The lesser of 25% of disposable earnings or the excess over 40x the highest applicable minimum wage. At New Mexico's $12.00 that floor is $480 a week. On $1,000 gross and $800 disposable earnings a week, that works out to $200. Federal law alone would allow $200.

No. Every figure here is for ORDINARY consumer debt. Child support and alimony carry their own, much higher federal limits — 50% to 65% of disposable earnings depending on whether you support another family and how far in arrears you are. Tax levies and bankruptcy orders are separate again, and New Mexico carves out further exceptions listed above.

New Mexico's limit above does not apply. A defaulted federal student loan can be collected by administrative wage garnishment without a court judgment, "notwithstanding any provision of State law" (31 U.S.C. §3720D). The most it can take is 15% of disposable pay, and never so much that you keep less than 30 times the federal minimum wage — $217.50 a week (34 C.F.R. §34.19). On $800 of disposable earnings a week that is $120. Private student loans are different: they are ordinary consumer debt, need a court judgment first, and follow New Mexico's limit.

Under federal law it is gross pay minus deductions REQUIRED by law: income tax, Social Security, Medicare, and legally mandated retirement. A voluntary deduction does not reduce disposable earnings even though it reduces take-home pay — a 401(k), health premium, HSA or union dues do not shrink what can be garnished.