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Training For New Hampshire Garnishment Law Requirements

What Is A Garnishment?

A wage garnishment is any legal or equitable procedure through which some portion of a person's earnings is required to be withheld by an employer for the payment of a debt. The six basic types of garnishments are child support, federal, state, or local levies, creditor garnishments, and student loans, with the largest amount of garnishments being for child support.

New Hampshire Garnishment Law Requirements

New Hampshire employers that receive a wage garnishment must comply with New Hampshire garnishment laws as well as applicable federal requirements. New Hampshire uses a trustee process for many creditor garnishments, and state law provides specific exemptions and protections for employee wages. For certain New Hampshire court judgments, wages earned before service of the trustee writ are protected up to 50 times the federal minimum hourly wage for each week.

New Hampshire Wage Garnishment Overview

A New Hampshire wage garnishment is a legal process through which a creditor may require an employer to withhold part of an employee's earnings to satisfy a judgment. New Hampshire generally refers to this process as trustee process, with the employer serving as the trustee holding wages or other property belonging to the judgment debtor.

New Hampshire trustee process is primarily governed by RSA Chapter 512. The state provides specific exemptions from trustee process, including protections for certain wages and payroll-account funds.

How Much Can Be Garnished in New Hampshire?

New Hampshire's wage garnishment rules differ from a simple state percentage formula. Under RSA 512:21, wages earned after service of the trustee writ are exempt from ordinary trustee process. Wages earned before service are also generally exempt, except in actions based on a judgment issued by a New Hampshire court of competent jurisdiction.

For a New Hampshire court judgment, wages earned before service of the trustee writ are exempt up to 50 times the minimum hourly wage established under federal law for each week. The employer must pay the exempt amount to the employee on the usual payday unless another legal circumstance prevents payment.

Employers should review the type of judgment, date of service, pay period, and specific trustee process documents before calculating any withholding.

New Hampshire Disposable Earnings

For child support and other income-assignment matters, New Hampshire defines disposable earnings as the portion of an individual's earnings remaining after deductions that are required by law or required by the employer as a condition of employment.

Payroll should calculate disposable earnings according to the applicable order and statutory requirements before determining the amount available for an income assignment or withholding order.

New Hampshire Wage Garnishment Process

A New Hampshire creditor garnishment generally begins when a creditor obtains a judgment and initiates trustee process against the employee's wages or other property held by a third party.

When an employer receives a New Hampshire garnishment or trustee-process order, payroll should:

• Record the date and time the trustee writ is received
• Review the writ, judgment, trustee disclosure form, and accompanying instructions
• Verify the employee's identity and employment status
• Determine whether the order applies to the employee's wages
• Determine the employee's earnings and applicable disposable earnings
• Identify wages or funds protected by New Hampshire law
• Calculate the amount that may legally be withheld
• Review existing garnishments and income withholding orders
• Complete and file the required trustee disclosure
• Withhold wages according to the applicable legal process
• Remit withheld amounts according to the court's instructions
• Continue withholding while the order remains legally effective
• Maintain records of calculations, withholding, and payments

New Hampshire Trustee Disclosure

New Hampshire trustee process requires the employer serving as trustee to provide a disclosure concerning property, money, rights, or credits of the judgment debtor in the employer's possession or control.

The trustee disclosure form generally must be filed with the court, plaintiff, and defendant within 30 days after receipt of the trustee writ. Employers should carefully review the documents served because the applicable response requirements can vary based on the proceeding.

An inaccurate or incomplete trustee disclosure can create additional liability for the employer. Payroll departments should coordinate with the organization's legal or compliance personnel when necessary.

New Hampshire Wage Exemptions

New Hampshire RSA 512:21 provides several exemptions from trustee process. These include wages earned after service of the writ and specified amounts of wages earned before service in actions based on a New Hampshire court judgment.

New Hampshire also exempts money held in an account designated as a payroll account from trustee process.

Other exemptions may apply to pensions, benefits, insurance proceeds, and other specified property or income. Employees may also have additional protections under federal law.

Employers should not independently determine whether an employee's wages or property are exempt unless the applicable legal process requires the employer to make that determination. Payroll should follow the trustee process documents and subsequent court instructions.

New Hampshire Child Support Garnishment

Child support and spousal support obligations are subject to special New Hampshire and federal requirements. New Hampshire RSA Chapter 458-B governs income assignments for support obligations.

For child support and combination child and spousal support orders issued or modified after January 1, 1994, the order generally includes a provision assigning a portion of the obligor's income, salary, commissions, earnings, or other periodic income. Effective January 1, 2026, New Hampshire law requires the court to notify the parties that wage income assignment for child support will be automatic unless the parties agree to another approved arrangement.

Employers processing a child support income withholding or income assignment order should follow the specific order and applicable New Hampshire and federal requirements rather than applying the ordinary creditor trustee-process rules.

New Hampshire Tax Garnishments

Federal and New Hampshire tax collection actions may be subject to specialized levy procedures that differ from ordinary creditor trustee process.

Employers receiving a federal or New Hampshire tax levy should follow the instructions provided by the applicable taxing authority rather than automatically applying the ordinary New Hampshire wage-garnishment rules.

New Hampshire Student Loan Garnishment

Defaulted federal student loans may be subject to administrative wage garnishment under federal law. Federal administrative wage garnishment can generally require withholding of up to 15% of disposable pay for qualifying defaulted federal student loans.

Employers receiving a federal student loan administrative wage garnishment should follow the instructions from the issuing federal agency or guaranty agency.

New Hampshire Bankruptcy Garnishment

Bankruptcy-related wage withholding can be subject to federal bankruptcy law and may operate differently from ordinary New Hampshire trustee process.

Employers receiving a bankruptcy-related wage order should review the order carefully and follow the applicable federal and New Hampshire requirements.

Multiple Garnishments in New Hampshire

New Hampshire employers may receive multiple garnishment, trustee-process, and income-withholding orders affecting the same employee. Payroll should review each order to determine its type, priority, effective date, and applicable withholding limitation.

Child support and other legally prioritized withholding orders may take precedence over ordinary creditor collection. Employers should maintain a complete record of all garnishments affecting an employee and should not assume that multiple orders permit withholding beyond the applicable legal maximum.

Federal Garnishment Limits

New Hampshire employers must comply with the federal Consumer Credit Protection Act in addition to New Hampshire garnishment law. For ordinary consumer debts, federal law generally limits garnishment to the lesser of 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum hourly wage.

New Hampshire's trustee-process exemptions can provide additional protection in situations covered by state law. Payroll should determine whether the New Hampshire exemption rules or federal restrictions provide the applicable protection before calculating a withholding.

Different federal limits apply to child support, tax debts, federal student loans, bankruptcy, and certain other obligations. Payroll should identify the type of debt before calculating the withholding.

Protection From Discharge

Federal law generally prohibits an employer from discharging an employee because the employee's earnings have been garnished for any one indebtedness.

Employers should therefore avoid adverse employment action based solely on an employee's garnishment status.

When to Stop a New Hampshire Wage Garnishment

Employers should continue withholding while the garnishment or trustee process remains legally effective and wages remain subject to the order.

Withholding should stop when the judgment or obligation has been satisfied or when the garnishment has been released, terminated, or modified by the court or other authorized authority.

Payroll should not stop a garnishment solely because an employee states that the debt has been paid. Appropriate documentation should be obtained before terminating or changing the withholding.

New Hampshire Garnishment Recordkeeping

Employers should maintain records of:

• Trustee writs and garnishment orders
• Dates and times of service
• Court judgments and related documents
• Trustee disclosure forms and responses
• Employee earnings
• Disposable-earnings calculations
• Amounts withheld
• Amounts remitted
• Support income withholding orders
• Correspondence concerning the garnishment
• Documentation terminating or modifying the garnishment

Accurate records are especially important because New Hampshire's trustee-process rules distinguish between wages earned before and after service of the writ and provide specific exemptions for certain amounts and types of funds.

Important New Hampshire Garnishment Compliance Points

New Hampshire wage garnishment compliance requires more than applying a fixed percentage to an employee's paycheck. Payroll must identify the type of legal process, determine when the writ was served, calculate applicable earnings and exemptions, consider the New Hampshire trustee-process rules, respond to the trustee process, and remit any amounts that are legally subject to the order.

Under RSA 512:21, wages earned after service of a trustee writ are exempt from ordinary trustee process. For wages earned before service, a special exemption applies in actions based on a judgment issued by a New Hampshire court: the employee is protected up to 50 times the federal minimum hourly wage for each week. Support obligations and other specialized collection orders are subject to different rules.

New Hampshire Garnishment Law Changes

New Hampshire garnishment laws and procedures can change through legislation, court decisions, and administrative requirements. Employers should periodically review current New Hampshire law and the specific garnishment documents they receive to ensure that payroll calculations and procedures remain compliant.

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