New Treasury Rule Protects Federal Benefits from Garnishment
February 28, 2011 by Marcy Einhorn, Esq.
An “interim final rule,” which would protect federal benefits from being taken by creditors, is open for public comment at the Treasury Department. The new rule will take effect on May 1.
The new rule will require banks to determine whether there are protected funds in an account when it receives a restraining notice. If the account has protected funds in it, the bank is required to protect two months of benefit payments from garnishment or a freeze.
In 2008, New York enacted...
[Read The Full Article]