Bank account garnishment occurs when a debtor is unable to repay his/her debts. Accordingly, the creditor garnishes the bank account as a way of recovering what is owed. To ensure that the creditors do not abuse the garnishment process it is governed by banking rules as well as state laws.

For the creditor to be able to garnish a debtors bank account, he/she has to deliver a garnishment summon obtained from court. The debtor does not even receive notice of the impending garnishment if his/her bank account.

The creditor /debt collector is required to first notify the financial institution before notifying the debtor. The problem with this is that the money in the account is frozen even before the creditor has had a chance to withdraw cash even for upkeep purposes. In most instances, the creditor received the garnishment notice two or more days after the account has already been frozen which is highly inconveniencing.

In the majority of states, garnishment freezes cash already in the account. Consequently, during the garnishment period, you’re the debtor’s bank is not in a position to honor any checks or orders for payment of cash drawn against the account. What this means is that any checks issued are likely to bounce. Once the amount for which garnishment was issued has been cleared, the account freeze is duly terminated.

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