CT HB06994

Repeal and replace section 52-367b governing bank account executions against judgment debtors, effective October 1, 2019.

Judgment creditors must pay a $105 fee to the court clerk to initiate execution against a judgment debtor's account; IV-D support cases require an affidavit showing $500 or more in overdue support.

Financial institutions must leave the lesser of the account balance or $1,000 in the judgment debtor's account if deposits of exempt federal benefits, Social Security, unemployment benefits, wages, or Title IV-D child support were made during the 60-day look-back period (or longer for federal benefits).

Judgment debtors may claim exemptions within 15 days of mailing, triggering a 45-day hold on removed funds and an automatic court hearing within 5 business days to determine which funds are exempt.

Financial institutions receive an $8 fee for compliance costs and are protected from liability for good faith actions, but may be held liable for improperly paying out exempt funds and must refund associated fees and charges.