Can a Checking or Savings Account Be Garnished?
When you accumulate a large amount of debt and do not pay it, the creditor could use several different techniques to try to collect the money. One of the options available to the creditor is to garnish your bank account which is also referred to as a levy.
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Judgment
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The first part of the process of levying your bank account is getting a judgment against you. For example, if you do not pay your credit card bill, your creditor can filing a lawsuit against you. If the debt is legitimate, the court will issue a judgment against you. When this happens, the court could order a wage garnishment, a lien on your property or a levy of your bank account.
Amount
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When a creditor levies your bank account, it could potentially devastate your financial situation. Depending on the amount of the judgment, the creditor could potentially take all of the money in your bank account and leave you with a balance of $0. The creditor does not care if you have to pay bills with the money, or if you do not have any money to buy food. The creditor has the judgment against you and they will do everything that they can to get their hands on the money while it is available.
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Process
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The process of getting your bank account levied could be complicated depending on how difficult you are to locate. The creditor will most likely try to contact all of the banks in your area to find out where you bank. While the bank will not necessarily give out your personal information, the banks have to cooperate with creditors up to a certain point. Once the creditor finds out where you bank, they can issue a writ of execution to the bank. Then the bank has to transfer the money out of your account and into a separate account for 21 days. At that point, the money will then be transferred to your creditor.
Options
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When you are on the verge of having an account levied, you have a few options that you could pursue in order to avoid having the money taken. You could try to contact your creditor and work out a payment arrangement. If the creditor is willing to work with you, you could come up with a payment plan over a longer period of time with small payments. Another option that you have is to file for bankruptcy. At that point, the creditor could no longer take your money. You could also take the money out of your bank account and stop using the account.
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