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News for Real Estate Investors and Landlords — garnishment

New law further protects retirement benefits from creditors

Posted by 15789465 on

A new law provides additional protections to federal retirement benefits such as social security, railroad retirement, etc.  While those benefits were already exempt from creditors, problems arose from bank garnishments "freezing" a bank account. Creditors can always send garnishments to banks. There's nothing illegal about that.  Once a bank receives a garnishment order, it freezes the account for a certain number of days to give the depositor time to argue with the creditor (NOT with the bank!!!) about whether the money is owed or not, and whether the bank account contains creditor-exempt money or not. The account might contain only...

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