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#1751740 - 10/24/12 01:21 PM Exempt Income Protection Act (EIPA)
NKP Offline
Member
Joined: Jun 2009
Posts: 89
This question relates to garnishment under EIPA. I am trying to determine if all bank accounts held by the same individual are to be considered separately when determining the protected amount. For example, let’s say an individual maintains 4 accounts at our institution each with balances of $5,000 and one of those accounts contains exempt federal benefits which will be protected from garnishment. Are the three remaining accounts each eligible for the $1,740 protection amount under EIPA? Or does the $1,740 apply to the remaining three accounts only as a whole? In other words, would the protected amount for those remaining three accounts be $5,220 ($1,740 x 3) or just $1,740? Thank you!

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#1752121 - 10/24/12 08:04 PM Re: Exempt Income Protection Act (EIPA) NKP
edAudit Offline
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edAudit
Joined: Jul 2008
Posts: 4,797
You are here
http://codes.lp.findlaw.com/nycode/CVP/52/5205

Exemption of banking institution accounts into which statutorily exempt payments are made electronically or by direct deposit.

If direct deposit or electronic payments reasonably identifiable as statutorily exempt payments were made to the judgment debtor's account in any banking institution during the forty-five day period precedin the date a restraining notice was served on the banking institution or an execution was served upon the banking institution by a marshal or sheriff, then two thousand five hundred dollars in the judgment debtor's account is exempt from application to the satisfaction of a money
judgment.

I am not a lawyer but I would take it as the exemption covers only the account that the money went in to.
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#1752667 - 10/26/12 01:05 PM Re: Exempt Income Protection Act (EIPA) NKP
NKP Offline
Member
Joined: Jun 2009
Posts: 89
Yes, I agree on the treatment of exempt funds. However, I was asking about the other accounts subject to garnishment that do not contain exempt funds. They are still eligible for protection of $1,740 in NYS. I just need to know if it is $1,740 in total or $1,740 for each account.

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