An online press conference has been scheduled for later today to discuss a new law that is going into effect in California next week that limits how much debt collectors can garnish from an individual’s bank account when seeking repayment on unpaid debts.
The law — SB 616 — was passed and signed by Gov. Gavin Newsom last October and is scheduled to go into effect on September 1. The press conference will take place at 11:30am ET on Tuesday, August 25. Details are available by clicking here. It will feature state Sen. Bob Wieckowski, the sponsor of the bill, and a number of individuals from advocacy organizations across California.
Under the law, debt collectors will be prohibited from garnishing the last $1,788 that individuals have in their bank accounts. That amount represents the minimum amount that a family of four needs to survive and will be adjusted every year. When the law was passed, for example, the threshold amount was $1,724.
For individuals who hold multiple accounts at the same institution, judgment holders will be able to request a hearing before a judge to determine how the exemption should be applied. The same is true for individuals who hold multiple accounts at multiple institutions. There are a handful of exceptions to the law, including:
- Judgment for wages owed, child support, or spousal support
- A provision of the Public Resources Code, Revenue and Taxation Code, or Unemployment Insurance Code
- A warrant or notice of levy issued by the state, or any department or agency thereof, for the collection of a liability.
“Families are hurting and wondering how they are going to survive financially,” said Wieckowski, in a statement
