You should understand if you are unable to pay your debts there are legal ways through which creditors can recover their money. On such way is by seizing your bank account. However, it is worth noting that the method the creditor decides to use in order to recover what is owed depends mostly on whether collateral was promised.

Collateral is essentially some form of security and can be in the form of savings bonds, a car, furniture, a house or term deposits. Creditors keep the security in the event that a creditor is unable to clear his/her debt. Conversely, the creditor may seize or garnish your bank account so as to recover the debt owed to him/her.

However, for the creditor to be able to garnish your account, he/she is required to obtain a judgment. Subsequently, he/she is required to file an enforcement writ in court. By doing he/she receives a garnishee summons that he/she delivers to the debtor’s bank.

Garnishment allows a creditor to seize money in the debtor’s account. It covers the debtor’s entire judgment debt as well as the legal costs. The bank then submits money to the courts which in turn pay the creditors. Debtors do not receive an advanced garnishment notice.

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