QUESTION
Can a creditor (Capital One) issue a garnishment summons to Chase where my unemployment benefits are being deposited?
Asked on Jan 22nd, 2013 on Bankruptcy - Michigan
More details to this question:
In other words, can they garnish or freeze that account that was set up strictly for the unemployment benefits or is that exempt?
4 ANSWERS
Bankruptcy Law Attorney serving Whittier, CA
at
Goldbach Law Group
Update Your Profile
Short answer is No. When you lose your job, unemployment insurance provides you with a percentage of the income you previously received in order to help you meet your financial obligations until you find new employment. Private creditors cannot use garnishment or a bank levy to seize your unemployment payments from your state government or your bank account. If you owe state taxes, however, your state has the right to withhold a portion of your unemployment. .
Answered on Jan 22nd, 2013 at 10:02 PM
Bankruptcy Attorney serving Phoenix, AZ
at
Law Office of D. L. Drain, P.A.
Update Your Profile
Most likely those funds are protected, but you need to check the exemptions in your state. Consider talking to a good bankruptcy attorney. Please understand that bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step.
Answered on Jan 22nd, 2013 at 10:02 PM
Appellate Attorney serving Grosse Pointe Farms, MI
at
Musilli Brennan Associates, PLLC
Update Your Profile
Once your unemployment benefits are in your account, they are indistinguishable from any other asset and subject to garnishment or attachment.
Answered on Jan 22nd, 2013 at 9:59 PM
Chapter 13 Bankruptcy Attorney serving Winston-Salem, NC
at
Love and Dillenbeck Law
Update Your Profile
Unemployment benefits are exempt. Do not commingle them with other funds or they can lose their exempt statements.
Answered on Jan 22nd, 2013 at 9:59 PM