Debt, Credit & Consumer Protection · Surprise rank #19
Debt Collector Froze Your Bank Account? NY Law Protects the First $4,080
The Exempt Income Protection Act (EIPA) automatically protects a statutory baseline of funds (over $3,800 downstate) and 90% of recent wage deposits from private creditor freezes.
Who
People whose bank account is frozen for an ordinary consumer judgment.
What to do
Start here: File the Exemption Claim Form with the bank and creditor/attorney immediately and seek legal help.
Eligibility: Funds and debt must fall within exemption rules; government debts and support obligations can follow different rules.
What you get
New York automatically protects a baseline amount in a bank account and most recent wages from ordinary judgment-creditor restraint.
Benefit: Release or preservation of exempt funds after an account restraint, plus statutory wage protections.
Possible value: Often several thousand dollars immediately, plus protection of qualifying wage deposits.
Good to know
Important: The exact protected floor changes with law and wage levels; do not publish a 2026 dollar figure without current confirmation.
Availability: Short response window—often about 20 days from the notice.
Why people miss it: Banks send dense notices and consumers may not realize they can file an exemption claim quickly.
Sources reviewed: Aug 2, 2026