Can Stocks Be Garnished?
In most cases, stocks and brokerage accounts can be garnished by a creditor with a money judgment. However, sometimes a brokerage account may be exempt from garnishment due to federal or state law. Brokerage Garnishment…
A garnishment is a legal process where a creditor obtains a court order to direct a third party, such as an employer or bank, to withhold funds from the debtor and send them directly to the creditor. This method is typically used to collect debts owed under a court judgment, like unpaid loans, child support, or back taxes.
The garnishment can apply to wages, bank accounts, or other assets, depending on the jurisdiction and the nature of the debt. This process ensures that the creditor can recover the owed amounts directly, bypassing the debtor’s control over these funds.
In most cases, stocks and brokerage accounts can be garnished by a creditor with a money judgment. However, sometimes a brokerage account may be exempt from garnishment due to federal or state law. Brokerage Garnishment…
Suppose a person is subject to a relatively small money judgment owed to a credit card company. In this example, the judgment debtor receives monthly child support payments from her ex-husband. She accumulates the child…
A client wanted to know whether his commissions would be exempt from garnishment as head of household income even though the commissions were paid on a 1099 and the client was considered an independent contractor….
In most cases, bitcoin and cryptocurrency can be garnished by judgment creditors. It is a common misconception that bitcoin and other cryptocurrencies cannot be garnished. Bitcoin accounts held at U.S. institutions like Coinbase can be…
Under tenants by entireties law, a joint account between married couples is protected from garnishment resulting from a separate judgment against just one of the spouses. But what if the joint account is not tenants…
If a judgment creditor obtains a writ of garnishment against a bank all of a judgment debtor’s accounts at the bank will be frozen until a court orders the money to be turned over to…
Our client is the beneficiary of a life insurance policy on her husband’s life. The husband owns the policy. The client has a large civil judgment. The husband died, and the wife filed a claim…
I have a client who lives in Florida where he works as a w-2 employee of a company located outside of Florida. The employer has no offices or retail locations in Florida. A creditor sued…
Florida Statutes exempt from garnishment money paid to a debtor for personal services “whether denominated as wages, salary, commission, or bonus.” Sometimes a “bonus” is not really a bonus for personal services and is not…
Florida Statute 222.11 protect from garnishment wages and other compensation earned by a head of household, and it further exempts wages deposited in the debtor’s bank accounts. . A client asked me this week if…