Garnishment of Bank account

[James Chinn]

I am going to be garnished for a debt from before I was divorced. All the correspondence went to my old address as well as any phone calls that were ignored by my ex. So a default judgement was issued and I did receive the summons and order of garnishment as it was at the house when I went to pick up my kids the other day. So I saw they can garnish my bank accounts so I hightailed it to the bank and withdrew all my available cash. After looking at all my options I will probably let them garnish the wages and when the debt gets down to a certain point pay the balance. However that may take about 18 months. Is my bank account at play until the debt is settled or is there some way or point in time I can go back to using my bank account before 18 months?

I did call the attorney for the creditor to see if there was a way to settle as I could pay up to %75 lump sum but they have never called back after I asked for a payoff amount, so I guess that train already left the station.

Thanks for your answers in advance.

[DesdemonaB]

Hi James

Welcome – sorry to hear about the garnishment, you can request a garnishment hearing – but there is a time limit so you might have take to court directly. I think I read it was three days from the date you received the garnishment paperwork. You might have to work fast, or contact the court directly.

At the hearing you could inform the court that you file as head of household, which will allow for a 15% garnishment vs. 25%.

Judgment creditors can’t double dip – they can’t garnish a bank account while a wage garnishment is in place. Judgment creditors are entitled to 100% of funds in bank (unless they are exempted funds) and if your wages are deposited in that account then that second garnishment would exceed the federal exempt of 25% of wage garnishment. Now they can hit your bank account before they request a wage garnishment and you could lose the funds in the bank but it would reduce the wage garnishment amount, paying your debt off faster.

Good luck with everything.

[treehugger1]

I cannot speak directly to Nebraska law or rules of civil procedure. Perhaps Desdemona is referring directly to Nebraska state law.

I can give you personal experience related to garnishment. In my state, Oregon, a creditor can go after any funds. Wage garnishment is always first, but the limit here is 25% of take-home pay. This does not stop them from going after other funds in bank accounts! In this state, a judgment creditor has every right to use every remedy to satisfy a judgment.

I am under a legal wage garnishment. I only use a bank account to pay bills, etc. I find true internet banking establishments the best precaution against attempted legal remedies.

There are all kinds of rules that state what, when, and how multiple garnishments can occur or not occur. In many cases, legal arguments protecting your assets might be after the fact.

I never assume my bank account is safe, as it can be levied above and beyond wage garnishment. Play it safe and close your bank account. You can open another account elsewhere. If you are paid direct deposit, ask for a paper check if possible, until the garnishment is satisfied.

It sounds as if the legal channels have already been passed through correctly. You wil have a tough time arguing against a garnishment if it was legally obtained under Nebraska state law and procedure.

There is no law in my state that reduces wage garnishment to 15% if you are head-of-household. Perhaps this is true in Nebraska. Google your state laws on wage garnishment, exemptions, etc.

As always, I am just offering my opinion and experience. I am no attorney. But, I have survived very well these past six years of insolvency.

Do your own due diligence.