Social Security Disability payments and a New York state pension are my only sources of income. This year I had to pay federal income tax because of retroactive payments from New York. I have an estimated refund of $700. Can those funds be restrained in my bank account by a debt collector when the source of the refund is exempt income?
Whether or not those funds can be restrained (frozen) by a debt collector with legal process is a matter of New York state law, if your account is located in New York. New York has a statute that protects account balances up to a threshold amount when the accounts receive electronic deposits of certain types of protected income. Social security disability income is one of those income types. However, the tax refund is not. Ask your bank about the New York law concerning protected income and how your tax refund would be treated.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
Whether or not those funds can be restrained (frozen) by a debt collector with legal process is a matter of New York state law, if your account is located in New York. New York has a statute that protects account balances up to a threshold amount when the accounts receive electronic 