California has a new law aimed to protect low-income families, SB 616. It stops debt collectors from levying a bank account once the individual’s combined account balances are less than $1,724. This dollar amount was derived from the minimum standard set by the Department of Social Services for a family of four in California to live on each month. The new law goes into effect September 2020.
The new law does not eliminate or erase the debt owed to the debt collector nor does it prevent the debt collector from garnishing up to 25% of a debtor’s wages. It simply provides a threshold that prevents a debt collector from draining every last cent a debtor has in a bank account. This will temporarily help individuals to meet basic food and shelter needs.
For long-term solutions, if you owe judgments, collection agencies, medical bills, credit cards, taxes, delinquent house or car payments, you should meet with a Certified Bankruptcy Specialist to review your options. Eliminating debt can help get you the fresh start you need. Everyone deserves a second chance. Call for a FREE CONSULTATION – 760-884-4444. We have options for you.