Help! Garnishment questions, bank info

[WhatMoney]

Banks and credit unions assume no responsibility for determining whether or not your account funds are exempt. This law may change someday when enough Boomers retire and get pissed about having their social security retirement deposits illegally frozen. But the bank lobby has more money than any senior lobby does - hence Congress obeys the money masters.

You have 30 days from your getting the notice of garnishment (bank levy) to challenge it. Hope you can get back your original amount of exempt funds they took. See ORS 18.700 (2)b below:

18.700 Manner of making challenge to garnishment. (1) A debtor may use a challenge to a garnishment to claim such exemptions from garnishment as are permitted by law. A challenge to a garnishment may also be used by a debtor:

(a) To assert that the amount specified in the writ of garnishment as being subject to garnishment is greater than the total amount owed by the debtor to the creditor; or

(b) To assert that property is not garnishable property.

(2) A debtor may make a challenge to a garnishment by completing the challenge to garnishment form provided by ORS 18.850, or a substantially similar form, and by delivering, in person or by first class mail, the original of the completed form to the court administrator for the court specified in the writ of garnishment as the court with authority over the writ and a copy of the completed form to the garnishor. A challenge to a garnishment must be delivered:

(a) Within 120 days after a copy of the writ of garnishment is delivered to the debtor, if the garnishee is the employer of the debtor and the challenge is based on an exemption that is claimed for wages earned by the debtor from the garnishee; or

(b) Within 30 days after a copy of the writ of garnishment is delivered to the debtor, if the challenge is made on any other basis.

(3) Upon receiving a challenge to a garnishment under subsection (2) of this section, the court administrator shall retain all payments sent to the court administrator under ORS 18.705 and 18.708 until such time as the court enters a decision on the challenge. The court administrator shall reject any payment that is received after the challenge is made and that is not payable to the court, and the court administrator shall return the payment to the garnishee with instructions to reissue the payment as payable to the court.

(4) A court shall not require the payment of any fee for the filing of a challenge to a garnishment.

It's up to your bank whether they will cash the $5K check without depositing it. If it's an IRS refund and they don't think it's a counterfeit check, they may do it. I wouldn't want to take $5K cash out of a bank without a police guard however.

[twinsplus14me]

Frankly I find it ridiculous that we have to

file a form to get money back that they never should have taken in the first place, but that's what I'll be doing first thing tomorrow.

Yes, it is an IRS refund check. We'll see what happens. I'll make sure to post when I cash the check. It's supposed to be in the mail in the next week or two.

[treehugger1]

A point for future reference: The thing everyone should be quite careful about is to NOT comingle funds, should one need to challenge a garnishment. I have part of my paycheck deposited into my bank account and part of it I take on paper. The bank deposits clearly provide evidence that the deposit is "income," of which 75% is exempt in Oregon (up to $7500 on account.) On occasion I also make a few dollars "here and there." I never deposit this into my account. One can keep a Western Union, Netspend, etc debit-card account and deposit money into those. My understanding is that these are exceptionally hard to find, except under a debtor exam. And, by the time one answered a debtor interrogatory, there is time to withdraw the money. You can do what you want to at any time you want to, but always be straight-forward and honorable. Be prepared to provide evidence that the money in a bank account is/was exempt.

You should provide any additional information to the court that shows the account in question were exempt funds. You should make it clear that the money on account was exempt.

Best regards.

[twinsplus14me]

We cashed our check! "Happy Dance"

We received our state refund check and we were able to cash it. Talked to the teller and she said the garnishment is only good on the day they receive it, it does not stay on the account. WOO HOO!

Hopefully, it will be the same when we go to cash the big one next week. We'll just check the acct to make sure no other garnishments have come in first. This one collection agency has been relentless.

I'm hoping the CA will have given up since they got so little last time. You'd think they would understand that we're poor already.

BTW- I checked with Wal Mart and the local check cashing places. Their limits were all $1500.

[WhatMoney]

We'll just check the acct to make sure no other garnishments have come in first.

As you have confirmed with your teller (and I've been saying in several posts) the garnishment only applies to funds in your account at the moment of the garnishment. But just in case, a trial withdrawl before you cash your check, if you must deposit it, would be the safest way since the bank will not inform you if your account is garnished the same day you make a deposit.

[twinsplus14me]

Point taken...

Point taken...we'll definitely try the withdrawal first! Thank you.

[JoeBlow]

You could have a relative cash the check in their account. The bank may put a wait on it until it clears. Should be no fee for that.

[twinsplus14me]

Cashed at bank with no problem! Woo Hoo!