Bank Account Garnishment Legal Guide

What Is a Bank Account Garnishment?

A bank account garnishment is a legal process where a creditor seizes money directly from a person’s bank account to collect on a court judgment. The creditor serves a garnishment order on the bank, which then freezes the account. After a court ruling, the bank transfers the funds to the creditor.

How Bank Account Garnishment Works

1. Creditor Obtains a Judgment

The first step to garnish a bank account is for the creditor to win a lawsuit and receive a court judgment stating the debtor owes money.

2. Creditor Files a Motion for Writ of Garnishment

The creditor then files a motion for a writ of garnishment with the court. The motion for garnishment is directed against a bank, not any particular account.

Under the law, the creditor is not required to notify the debtor in advance.

3. Court Issues a Writ of Garnishment

The Clerk of the Court will issue a writ of garnishment, which instructs the bank to freeze all accounts owned wholly or partially by the judgment debtor.

4. Bank Freezes the Account

Upon being served the writ, the bank must freeze all accounts owned by the judgment debtor. The bank is not allowed to make a determination as to whether the account is exempt from garnishment.

5. Debtor Is Notified

After the bank freezes the account, the creditor must notify the debtor about the garnishment.

In Florida, the creditor must provide a specific statutory notice to the debtor about the garnishment.

6. Debtor Claims Exemptions

The debtor can then file a claim of exemption if any money in the bank accounts is exempt from garnishment. For example, a debtor can claim an exemption for tenancy by the entirety accounts, social security, retirement distributions, or head of family wages.

7. Court Reviews Any Objections

If the debtor files a claim of exemption, the Court must quickly hold a hearing to evaluate the claim.

8. Funds Are Released to the Creditor

If no valid exemption is claimed or the court rules in favor of the creditor, the bank sends the garnished funds directly to the creditor.

9. Garnishment Ends

If the debtor proves entitlement to an exemption, the court will release the garnishment, and the funds will be returned to the debtor.

If the debtor does not prove an applicable exemption or if the debtor does not file a claim, then the funds will be sent to the creditor by the bank.

When Can a Creditor Garnish a Bank Account?

A creditor can garnish a bank account only after obtaining a court judgment that confirms the debtor legally owes the debt. Garnishment is a post-judgment remedy and cannot be used without first going through the legal process to prove the debt and get a money judgment.

Once the judgment is entered, the creditor can immediately request a writ of garnishment from the court.

Which Bank Accounts Can Be Garnished?

Any personal bank account in the debtor’s name can be garnished, including checking, savings, and money market accounts. Safe deposit boxes maintained at the bank are also subject to garnishment.

Once a writ of garnishment is served, the bank is required to freeze the funds in those accounts, regardless of how much money is in them.

Online bank accounts can be garnished just like any other bank account as long as they have a U.S. branch or office. Retirement accounts, certain government benefit accounts, and custodial accounts for others are generally exempt, but may still be frozen temporarily until the exemption is proven.

Can Joint Bank Accounts Be Garnished?

Joint bank accounts can be garnished if the debtor is listed as an account holder. However, the non-debtor co-owner may be able to contest the garnishment.

In Florida, joint accounts held as tenancy by the entirety are exempt from judgments against one spouse alone.

The non-debtor must go to court to assert ownership of their money in the joint bank account. For example, suppose a judgment debtor and their elderly parent are joint owners of a bank account. In that case, the judgment debtor may defeat the garnishment by asserting that the funds do not belong to them despite their name appearing on the account title.

How to Stop Bank Account Garnishment

You can stop bank account garnishment by filing a claim of exemption, negotiating with the creditor, or using legal remedies such as bankruptcy. Acting quickly is essential, since funds may be frozen as soon as the bank receives the garnishment order.

Here are the main ways to stop a bank account garnishment:

1. File a Claim of Exemption

If the money in your account is protected by an exemption, you can file a Claim of Exemption with the court. This form will outline why the funds in your account should be protected from garnishment.

For example, you would file this form if your account contains Social Security benefits or wages that qualify under the head of family exemption. Once the claim is filed, the court will schedule a hearing to decide if the exemption applies.

2. Negotiate with the Creditor

Creditors may agree to settle the debt or release the garnishment in exchange for a lump-sum payment or a payment plan. A negotiated agreement can often resolve the matter faster than going through court.

3. File a Motion to Dissolve the Writ

If the garnishment is legally flawed—for example, if the creditor failed to provide the correct statutory notice—you can ask the court to dissolve or quash the garnishment.

4. Declare Bankruptcy

Filing for bankruptcy triggers an automatic stay that immediately stops most collection actions, including garnishment. Any funds held by the bank would become part of the Chapter 7 bankruptcy estate.

How Much Can Be Garnished from a Bank Account?

There is no set limit on how much money a creditor can garnish from a bank account—creditors can take the full amount in the account up to the judgment balance. Unlike wage garnishment, which is capped by federal and state laws, bank account garnishment allows creditors to seize non-exempt funds in full.

If the balance in the account is less than the total judgment, the creditor can garnish all non-exempt funds. If the balance exceeds the judgment, only the amount necessary to satisfy the judgment will be transferred. The bank may also charge processing fees, and additional court costs may be added to the total.

In Florida, the bank will place a temporary hold on the bank account equal to double the judgment amount.

A bank account garnishment is a one-time action on the funds available in the account at the time the bank receives the writ. Once the bank files an answer to the garnishment, any new funds added to the accounts are not subject to the bank account garnishment.

Can a Bank Account Be Garnished Without Notice?

Yes, a bank account can be garnished without advance notice to the debtor. In many states, creditors are allowed to serve a garnishment order directly on the bank before the debtor is informed, causing the account to be frozen without warning.

After the bank receives the writ of garnishment, it is required to immediately freeze the funds in the account. Only after this freeze occurs is the debtor typically notified. At that point, the debtor has a limited time—often 20 days or less—to respond, file exemptions, or challenge the garnishment. While this process may seem unfair, courts have upheld the practice because the debtor is given a chance to contest the garnishment after the account is frozen but before the funds are released.

How Long Does a Bank Account Garnishment Last?

Once the garnishment process starts, it can take 2-3 months to resolve fully until the account is unfrozen. If the creditor voluntarily dismisses the garnishment because there is not enough money in the bank account or due to a settlement, then the garnishment will end sooner.