QUESTION
Can a credit card co. garnish ira distribution for someone over 65 in NY State?
Asked on Oct 03rd, 2012 on Debtor and Creditor - New York
More details to this question:
I can't file bankruptcy because I live in a rent stabilized apt. and have been told by an attorney that I can lose my apt. if I file. His told me that once I am on social security, and it is my only soucrce of income, it is protected. Is the same true of any IRA distributions?
1 ANSWER
That is a very good question, and the answer is ... it depends. Your IRA is protected as an exempt asset until it is withdrawn. Once withdrawn it becomes attachable. As to your SS, I suggest you maintain a separate account containing only exempt proceeds to avoiding having the account restrained with co-mingled assets.
Answered on Oct 04th, 2012 at 11:59 AM
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