The short answer is yes! If you owe creditors, collectors or
anyone else money, they can obtain a money judgment and have the funds in your
bank account frozen or they can seize them outright. Here is a brief overview
of the rules:
Whoever holds a judgment against you can go to someone else who
owes you money or is holding money for you and intercept that money through a
wage garnishment or garnishment of your bank account. Anyone who owes you
money, or holds money for you, is called the "garnishee defendant" and through
the garnishment process, can be forced to reveal to the court how much money
they owe you.
Then, the court can require, through an order called a
Writ of Garnishment, to force the bank or your employer to pay
a certain part of the money owed to you, into the court registry. After
receiving payment, the court turns the money over to whoever holds the
judgment.
In order for someone to garnish your wages or bank account,
they need to know someone who owes you money or where you bank or where you
work before they can proceed with a garnishment action. The garnishment process
costs a small fee (around $20.00 in most states), plus the costs of serving the
papers. You will more than likely have to pay these fees as well.
Note: Only disposable earnings and the amount set by state law
can be garnished from wages. Ask the clerk of the court for the correct amount
in your state.
Learn more about Garnishment of
wages and bank accounts
Learn how the actual
Bank
Account Garnishment Works
What to do if your account becomes overdrawn as a result of the
garnishment or post-dated checks. Overdrawn
Bank Accounts