How to Stop Bank Account Garnishment
- 1). Respond to the initial claim. Before a creditor asks for a judgment against you, he usually sends a letter to inform you of his claim. If you respond to this initial claim, you might be able to make payments on the account before a judgment in the creditor's favor can be issued.
- 2). Pay the creditor. In most states and counties, creditors must wait a proscribed number of days before they can garnish your account. This waiting period varies by jurisdiction. During this period, your accounts remain frozen. If you have other money available, you can pay the creditor to keep the account from being garnished.
- 3). Discuss your options with the creditor. Chances are, if you're being garnished, lump sum repayment is not an option. Call your creditor and discuss other options. The creditor might be willing to work with you to establish a repayment plan. A creditor can stop a bank garnishment at any time by sending a notice to your bank.
- 4). Challenge the garnishment. During the waiting period, you can challenge the bank garnishment with the court that issued the initial judgment. The information to challenge the garnishment should be on the notice you received regarding the garnishment. If it isn't, contact the court that issued the initial judgment for information on how to challenge the garnishment.
Valid reasons to challenge a bank garnishment include prior payment, exempt income, such as Social Security and veteran's benefits, or judgment error, such as an incorrect amount due. If you choose to challenge a judgment, be sure to provide the court with documentation, such as bills and bank statements to verify your argument. - 5). File bankruptcy. The only sure way to stop a garnishment is to file bankruptcy. When you file bankruptcy, the court issues a stop order on all debt collections. Legally, your creditors can no longer collect against you.
