Hopefully you read our blog yesterday titled “Wage Garnishments…A Powerful Tool for Creditors” for information regarding wage garnishments. This blog focuses on non-wage garnishments, which are also sometimes referred to as account garnishments. The most common form of non-wage garnishments is the garnishment of a judgment-debtor’s bank account.
Once a creditor has received a judgment against the debtor, the creditor can serve a garnishee (bank or other property holder) with notice of the garnishment. The judgment debtor receives notice from the garnishee instead of the judgment creditor. The garnishee is given instructions with what amount to be deducted from the account or property being held by the garnishee. However, there are a variety of limitations are placed on non-wage garnishments, including:
- $300.00 in a bank, savings and loan association or credit union account ($600.00 for married account holders)
- Supplemental Security Income (SSI)
- Social Security benefits (SSA)
- Temporary assistance for needy families
- Veterans’ Administration benefits (VA)
- Certain pension benefits and retirement funds
- Workers’ Compensation benefits
- Some insurance proceeds
The law also provides protections for the debtor’s household goods, clothes, tools, and a certain amount of equity in a vehicle. Otherwise, money deposited into a bank account or being held by the garnishee is available for the creditor to garnish to pay the judgment.
The attorneys at Windtberg & Zdancewicz, PLC, provide clients with experienced legal representation. We handle many types of business disputes on behalf of both creditors and debtors. Our attorneys handle cases from pre-litigation negotiations through litigation, obtaining and enforcing judgments to collect what our clients are owed. We are experienced in creditor’s rights including garnishments, charging orders, attachment, property execution, trustee’s sales, foreclosures, judgments, judgment collection, domestication of foreign judgments, and creditor’s issues in bankruptcy cases. If you need assistance, or are interested in learning more, please contact us at (480) 584-5660.