Free 1 Hour Consultation
Call To Schedule A Zoom Meeting
908-782-9333

Bill Wolfson's Comments

PROTECT YOUR SOCIAL SECURITY, PUBLIC ASSISTANCE & OLD AGE PENSIONS FROM CREDITORS

Posted by William Wolfson | Apr 21, 2020 | 0 Comments

If a court officer or a creditor has seized money in your bank account AND you can prove those funds came from social security payments or other protected payments, a state court judge may well order the funds given back to you.

Even after it has been paid to a debtor, money obtained from social security, unemployment compensation or any local public assistance benefit such as the aid to dependent children program, or workers compensation benefits, is exempt from the claims of creditors. It is also exempt from execution, levy, attachment, garnishment or other legal process, including the operation of any bankruptcy or insolvency law.

New Jersey has created an additional exemption for “old age assistance.” All amounts paid as old age assistance are exempt from any tax levied by the state or by any subdivision of the state, and are also exempt from levy and sale, garnishment, attachment, or any other process whatsoever and shall be non-transferable in any form. In case of bankruptcy these monies do not pass to the trustee or other person acting on behalf of the creditors of the aged needy person.

Both New Jersey and federal law permit the tracing of exempt funds when co-mingled in deposit accounts with otherwise non-exempt funds. Tracing the funds in a debtor's bank account to exempt funds is expressly authorized under New Jersey Law. If traceable to an exempt source of funds, the funds in the bank account are, themselves, exempt. Traceable funds deposited into a judgment debtor/beneficiary's bank account do not lose their exempt character.

DO YOU WANT TO KNOW MORE? PLEASE CONTACT US.

About the Author

William Wolfson

I am a third-generation resident of Hunterdon County, New Jersey. My family has lived and worked here since 1918 when my grandfather bought a farm near Frenchtown. In 1938, he and my uncle started a farm equipment sales and service business. I have lived and worked in Hunterdon County practically...

Comments

There are no comments for this post. Be the first and Add your Comment below.

Leave a Comment

CONTACT US TODAY

Initial meetings with an attorney should be more than a “meet and greet” session. Often, real progress toward a possible solution can be made. Your first consultation with Bill Wolfson is offered free of charge. We invite you to schedule it today so that you can get immediate answers to your most pressing questions.

Menu