NYC Resident

I have been unemployed for the past eight months since my last contract job ended in February 2008. Previous to that, I was laid off from a job I've held for the past eight years. My husband filed for Bankruptcy without me because at the time, I wasn't in the kind of debt trouble I'm in now, I was just a little behind in my bills. So far, I have been working with all of my creditors in hopes that they will allow me some way to pay off my debts. Some have been nice and worked with me to get them paid off. I've managed to pay off most but not all but three.

The others that were not so nice, didn't want to hear about current my financial situtuation and had the expectation for me pay higher payment plan amounts. This one particular creditor, WNNFB Bank (Ashley Stewart) was not willing to work with my current income at all to the point where they just broke off all contact with me and told me that they would be filing for judgement. I only had $1000 left to pay them after making arranged payments with them in the past. Scared to death and against my better judgement, I borrowed against my pension to pay off the debt. Before I could send a check for payment and my pension early distribution check could clear, my checking and savings account was seized and frozen. Both accounts contained my unemployment benefits and my pension payment. I am totally unable to pay my rent, utilities or buy food for my four children at this point.

I am unsure of what type of income is exempt from judgement seizures in NYC but thought unemployment benefits was part of it. What can I do to get these funds back?

NYC Resident

I have been unemployed for the past eight months since my last contract job ended in February 2008. Previous to that, I was laid off from a job I've held for the past eight years. My husband filed for Bankruptcy without me because at the time, I wasn't in the kind of debt trouble I'm in now, I was just a little behind in my bills. So far, I have been working with all of my creditors in hopes that they will allow me some way to pay off my debts. Some have been nice and worked with me to get them paid off. I've managed to pay off most but not all but three.

The others that were not not so nice, didn't want to hear about current my financial situtuation and had the expectation for me pay higher payment plan amounts. This one particular creditor, WNNFB Bank (Ashley Stewart) was not willing to work with my current income at all to the point where they just broke off all contact with me and told me that they would be filing for judgement. I only had $1000 left to pay them after making arranged payments with them in the past. Scared to death and against my better judgement, I borrowed against my pension to pay off the debt. Before I could send a check for payment and my pension early distribution check could clear, my checking and savings account was seized and frozen. Both accounts contained my unemployment benefits and my pension payment. I am totally unable to pay my rent, utilities or buy food for my four children at this point.

I am unsure of what type of income is exempt from judgement seizures in NYC but thought unemployment benefits was part of it. What can I do to get these funds back?



You account cannot be liened unless there is a Judgment against you. Did this happen?

The easy way is to attempt to vacate the Judgment - if you have grounds.

Unemployment IS exempt in NY; the pension check is not.

The other way is as follows:

NEDAP - What is Exempt from Debt Collection? (http://www.nedap.org/hotline/exempt.html) - "If all the funds in your bank account are exempt from debt collection, a judgment creditor has no right to hold onto the account, and must release it immediately, even if it has a judgment against you. To obtain release of your account, you need to call the judgment creditor's attorney (you can get the attorney's contact information from your bank). Notify the attorney that all the funds in your bank account are exempt from debt collection and demand an immediate release of your account. The attorney may ask you to fax or mail proof of your exempt income. You can send up to three months of bank statements as proof (feel free to redact your bank statements to protect your privacy - the attorney only needs to see deposits, not purchases). Please be aware that the judgment creditor's attorney may delay and make excuses to avoid releasing your exempt funds. If you have any trouble at all, you should follow our instructions to vacate the default judgment. In general, even when you have exempt funds, you are better off vacating the judgment if at all possible."