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If you receive PA or SSI, all your earned income is exempt from debt collection. Earned income up to 30 times the minimum wage per week, after taxes, is exempt. The minimum wage is currently $16.50 an hour. If you take home $495.00* per week or less, all your earned income is exempt from debt collection.
An important New York law that protects some of the money in your bank account is the Exempt Income Protection Act (EIPA). New York passed EIPA in 2008 to prevent debt collectors from draining peoples bank accounts, leaving New Yorkers unable to cover their basic needs.
If no exempt funds can be identified in the bank account, any amount over the $1,950 (as of 2022) that is present in a debtors account can be frozen, including money in a savings account.
Amounts of exempt earned income If you are employed, work in NYC, and earn more than $495 per week in disposable income (meaning your income that is left after mandatory deductions are taken out of your paycheck) 90% of your gross income or 75% of your disposable income, whichever is greater, is exempt.
In New York, a creditor can garnish the lesser of 10% of your gross wages or 25% of your disposable income to the extent that this amount exceeds 30 times the federal or state minimum wage (whichever is greater).
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