NJ Court Fails To Clarify Payroll Account Levy Rules

Law360, New York (May 21, 2015, 10:40 AM EDT) -- Earlier this month, the New Jersey state appeals court seemingly set a bright-line test balancing the rights of judgment creditors and employees when it comes to monies in a levied bank account. In The Pitney Bowes Bank Inc. v. ABC Caging Fulfillment, 2015 N.J. Super. LEXIS 70 at *1 (App. Div. May 8, 2015), a creditor levied upon a bank account maintained by a business debtor, ABC Caging Fulfillment, at a local community bank, Shore Community Bank. When the judgment creditor, The Pitney Bowes Bank Inc., sought a court order approving the transfer of funds from this account, it received resistance...

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