Answer from Ken: Any exemption from levy or garnishment would be a function of the law of your state. You'll need to check with your attorney on this one.
Answer from Andy: Some exemptions are common in many states. As Ken noted, you need to verify if this applies to you and it may depend on where the levy is from, but I am aware of three common types of exempt funds.
- Public benefits such as Social Security, veterans, welfare, unemployment, and workers' compensation benefits.
- Retirement plans including IRAs and Keoghs.
- Insurance proceeds for disability and health insurance benefits, life insurance proceeds and the loan value of most life insurance policies.
First published on BankersOnline.com 1/31/11