New York Attorney has issued guidance clarifying that emergency stimulus payments authorised by the American Rescue Plan shall be exempt from garnishment under New York law. The guidance states that any attempt to garnish stimulus funds from consumers will be constituted as unlawful and would violate New York and federal law. The guidance also explains that any attempt to garnish stimulus funds from consumers in the state would constitute “illegal acts” because such garnishment would violate prohibitions under the Banking institutions are also advised to treat these stimulus payments “as subject to the same protections as statutorily exempt payments.”

For more details on the American Rescue Plan Act, read our previous story HERE


*Tanvi Singh, Editorial Assistant has put this story together.

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