Connecticut House Bill HB07031

Connecticut 2017 Regular Session

• Introduced: 2/9/17
• Refer: 2/9/17

Caption

An Act Concerning Bank Account Executions.

Impact

The enactment of HB07031 is expected to provide greater financial security for employees by safeguarding their wages from bank account executions. This is particularly beneficial in situations where individuals may face creditors or other financial obligations, ensuring that their earned income remains protected and available for essential living expenses. By clarifying the definition of wages as exempt, the bill aims to reduce the potential for employees’ earnings being unduly seized during legal disputes or debt collections.

Summary

House Bill 07031, titled 'An Act Concerning Bank Account Executions', aims to amend existing provisions within the Connecticut General Statutes to clarify the exempt status of employee wages deposited into bank accounts from being executed against. The bill, introduced to the Banking Committee, was structured around a specific statutory section that defines what constitutes 'earnings' under the law. By updating the language used in this section, the bill aims to ensure that the income derived from personal services—including wages, salaries, and bonuses—retains its exempt status when placed into a bank account.

Contention

While the bill seeks to protect employees, discussions around it may involve concerns from creditors or financial institutions regarding the implications of such exemptions. Stakeholders in the banking and lending sectors might argue that it could complicate debt recovery processes. However, advocates for the bill assert that it is crucial for maintaining the economic well-being of workers and preventing undue hardship that may arise from aggressive collection tactics. This balance between creditor rights and employee protections may generate discussions during the bill's legislative process.