Can a creditor garnish a bank account?


According to the Federal Trade Commission, a creditor can only garnish a bank account after the creditor receives a judgement against the debtor. To receive a judgement, the creditor must first sue the debtor, and a court must award the creditor the right to garnish the bank account.

Illinois Legal Aid notes that there are certain types of income that are not subject to bank garnishment even when a judgement is awarded to a creditor. These include state and federal unearned income, such as Social Security, unemployment benefits and welfare. Before these types of income can be garnished by a creditor, the bank must confirm that there is at least two months' worth of benefits in the account to serve as a lifeline for the debtor. If there are funds above two months of benefits, then those amounts may be garnished from a bank account by court order.

Q&A Related to "Can a creditor garnish a bank account?"
A bank garnishment, also known as a "levy, is common judgment collection method. After you win your judgment, you can ask the court to order your debtor's bank to turn over any
Until the debt is paid according to the judgment award. States establish garnishment laws and each state differs somewhat in the way garnishment is implemented, the percenage allowed
My best advice to you is to seek the advise of a competent bankruptcy lawyer. Most bankruptcy lawyers offer a first visit free consultation. Make sure that you select an attorney
All of it up to the amount of the lien. First you lose in court, then you still don't pay-nor attempt to pay-then they go back to court and get an order for lien (take assets-like
1 Additional Answer Answer for: can a creditor garnish your bank account
Can a Creditor Garnish My Bank Account?
Garnishment of checking and savings accounts is one debt recovery option some creditors employ. If you leave debts unpaid, a creditor that sues you can request the court's permission to seize money within your bank accounts as payment for the neglected... More »
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