New York enacts legislation exempting stimulus payments from debt collectors

State Issues Covid-19 New York Debt Collection

On May 13, the governor of New York signed legislation (S.5923-A/A.6617-A) that amends the New York Civil Practice Law and Rules to exempt “emergency relief funds” from being used to satisfy a money judgement, except in limited instances. This includes “tax refunds, recovery rebates, refundable tax credits, and any advances of any tax credits, under the federal Families First Coronavirus Response Act (FFCRA), Coronavirus Aid, Relief, and Economic Security Act of 2020 (CARES Act), Consolidated Appropriations Act of 2021, and American Rescue Plan Act of 2021 (ARPA).”  A banking institution is also barred from asserting, claiming, or exercising any right of set off against these funds.