Q: Can my direct deposit funds be frozen by a judgment creditor, or is it except after being deposited into my bank account
I am a New your city retired civil servant. I'm a little confuse with the exempt law. Not sure if only federal funds deposited into bank account are protected, or all civil servant, city, state, and federal are protected.
A: Pension money can be exempt, but you need to make sure that your account only contains exempt funds. Otherwise, there is an argument about which funds are in the account. Also, if you have a judgment, go to bank and make sure they note that all funds in account are exempt on your file. This is not foolproof, but can help. If there is a levy, you need to fill out a worksheet on exemption you can get from the bank.
A:
Exempt funds that are co-mingled with non-exempt funds could be subject to a restraint as the entire account will be restrained up to twice the judgment balance.
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