Legal Question in Credit and Debt Law in New York

Bank Levy


I received a notice from the Sheriffs Dept that my income is going to be garnished and my bank account levied. The language in the notice is as follows: ''Pursuant to CPLR 5205(1), two thousand five hundred dollars of an account containing direct deposit or electronic payments reasonably identifiable as statutorily exempt payments, as defined in CPLR 5205 (1)(2), is exempt from execution and the garnishee cannot levy upon or restrain two thousand five hundred dollars in such account.''

Does this mean they cannot levy an account to which my paycheck is directly deposited up to the amount of $2500.00? It would be catastrophic for me to have my paycheck deposited only to find I can't access the money. Should I discontinue my direct deposit? Help please!!

Asked on 6/30/09, 4:37 pm

1 Answer from Attorneys

Jeffrey Shepro Jeffrey Shepro PC: NY Commercial Real Estate and Business Law

Re: Bank Levy

Generally, the judgment creditor can garnish your wages regardless of how much money you have in the bank. Stopping the direct deposit will reduce the amount of money in your bank and the amount of money the judgment creditor can levy but your employer will still be obligated to pay part of your wages to the judgment creditor. If the judgment creditor has a default judgment against you, depending on the facts of your case, you may be able to vacate the judgment and fight back. Please call if you would like to discuss further.


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Answered on 7/01/09, 3:17 pm

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