50 State Public Benefits Exemptions

Exempting the Earned Income Tax Credit from the Bankruptcy Estate
procedurallytaxing.com

Author argues: "The bankruptcy code allows each state to decide which assets a debtor may choose to exempt from the bankruptcy estate. Most states have exempted EITC refunds because the payments meet the state definition of payment for the welfare of the individual. Similarly, most states have exempted the advanced child tax credit (ACTC); however, each state statute stands on its own. Ms. Medina finds out to her sorrow that New Mexico has not drafted its statutory exemptions in a manner allowing for the exemption of the EITC. As discussed below, this is an area where Congress should step in. We should not require a state by state determination of whether to exempt federal anti-poverty payments."