Garnishments:  Bank Accounts & Wages

Once a creditor has obtained a judgment against you, the next step they take is to begin looking for your assets, usually in the form of a bank account or wages.  If the creditor can locate a bank account or wages belong to you, the creditor will try to garnish those funds.

Garnishments are not automatic, however.  The creditor must first sue you in court and obtain a judgment against you.  The creditor must then go through a separate court process to get a garnishment order for your wages and/or bank accounts.

Bank Account Garnishments

When a creditor garnishes your bank account, the court orders the bank to send the money in your account to the creditor to pay on the judgment.

The amount that can be garnished from your bank account will depend to some extent on where the funds in the account came from. 

Some bank accounts are exempt from garnishment because the funds are from an exempt source such as Social Security or Disability payments. In spite of the exemption, the creditor can still request to garnish your account and the bank can still freeze your account.  You have to request the exemption from the court within a specific period of time after your account has been frozen.  If you don’t, the court can order that the funds in your account be turned over to the creditor. 

There are also other exemptions and objections that might apply to prevent the funds in your bank account from being garnished, depending on the specific situation.  Contact an attorney right away if your bank account has been garnished or frozen so that you can exercise all of your allowable exemptions and/or objections.

Wage Garnishments 

When a creditor garnishes wages, your employer is ordered by the court to withhold a portion of your paycheck each pay period.  The employer must then send the amount withheld to the creditor to pay on the judgment.

Each state has its own rules as to how wage garnishments are calculated.  According to federal law, up to 25% of a person's "disposable income" can be garnished. Up to 50% of disposable income can be garnished for child support. "Disposable income" is the amount of earnings left after certain deductions. These deductions include federal and state taxes, Social Security, unemployment insurance and medical insurance.

If your wages are already being garnished for a debt, the second creditor can't garnish your wages unless the first garnishment takes less than 25% (or 50% for child support) of your wages.

If your wages or bank account is being garnished, contact us now for assistance.