Yes, a garnishment can take money directly from your checking account
A bank garnishment (also called a bank levy) is a court order that tells your bank to freeze and transfer money from your account to pay a debt. The creditor or debt collector does not take the money themselves — your bank does it on the court's instruction. Money can be taken from checking accounts, savings accounts, and money market accounts. The bank typically freezes the account first, then transfers the funds within a few business days.
The process starts when a creditor wins a judgment against you in court. That judgment gives them the legal right to collect. They then file a separate request — called a writ of garnishment or levy — with the court, which sends it to your bank. Your bank is legally required to comply. You do not have to owe the creditor money directly; a judgment creditor can also garnish accounts to collect on behalf of a third party.
The amount taken depends on what the judgment says you owe, plus any court costs or collection fees the creditor added. Your bank may also charge a fee (usually $25 to $100) for processing the garnishment, and that fee comes out of your account too.
Key Takeaways
- A bank garnishment freezes your checking account and transfers money to pay a judgment debt, and your bank must comply with the court order.
- Federal law protects a portion of your income if it was deposited within the past 60 days, but this protection only covers wages, not other money in the account.
- You have the right to object to a garnishment in court, and some states allow you to claim certain funds as exempt before the money is transferred.
- If your account is frozen, you should contact your bank immediately to ask about their hold procedures and whether you can dispute the garnishment.
- State law determines how much of your account can be garnished, and some states protect more money than others.
How the bank knows to freeze your account
The creditor or their attorney files a writ of garnishment with the court that issued the judgment. The court then sends the writ to your bank — usually by mail, though some courts now send them electronically. Your bank receives the order and is legally bound to act on it within a set timeframe, typically one to three business days depending on your state.
Your bank does not contact you first to ask permission. The freeze happens automatically once the writ arrives. You may not know your account is frozen until you try to make a purchase or withdraw cash and the transaction is declined. Some banks send a notice after the freeze is in place; others do not notify you until after the money has been transferred.
The bank will freeze all funds in the account, even if only part of the balance is supposed to be taken. The frozen amount is then held for a set period (usually 10 to 21 days depending on state law) to give you time to object. After that hold period, the bank transfers the money to the court or directly to the creditor.
What money in your account is protected from garnishment
Federal law protects recent wage deposits from garnishment. If money was deposited into your account within the past 60 days and came from your paycheck, Social Security, or certain other government benefits, your bank must set aside at least $1,260 of that money (as of 2024; this amount adjusts yearly). This protection is automatic — you do not have to ask for it.
The catch is that this protection only covers money that was actually deposited within 60 days. If you deposited your paycheck three months ago and it has been sitting in the account since then, it is no longer protected. Also, this rule protects only the money itself, not your account. If you have $2,000 in the account and $1,500 came from your paycheck in the past 60 days, the bank can still freeze the whole account — but they must leave at least $1,260 untouched.
Some states offer additional protections. A few states protect a larger amount of recent wages, and some protect other types of income or savings. Your state's laws may also exempt certain accounts entirely, such as accounts held in trust for a minor or accounts designated for a specific purpose. Check your state's garnishment laws or ask your bank what protections apply in your situation.
Social Security and government benefits in your account
Social Security deposits receive special protection under federal law. Money deposited from Social Security into your account within the past two months is protected from garnishment by most creditors. This protection is broader than the wage protection — it covers the full amount of the deposit, not just $1,260.
However, this protection does not apply to all types of creditors. Child support and spousal support can garnish Social Security funds. Federal tax debts can also garnish Social Security. Some state tax debts may garnish Social Security as well, depending on your state's law. If a garnishment is for one of these types of debt, the Social Security protection may not apply.
Other government benefits — such as unemployment insurance, disability payments, or state assistance — may have their own protections depending on your state. When your bank receives a garnishment order, they should identify protected deposits and set them aside. If you believe your bank incorrectly garnished protected funds, you can file an objection with the court.
How to object to a garnishment before money is taken
Most states give you a window of time — usually 10 to 21 days after the garnishment is served on your bank — to file an objection in court. This is called a claim of exemption or notice of objection, depending on your state. You file it with the court that issued the judgment, not with your bank or the creditor.
Common grounds for objection include: the money in your account is protected (such as recent wages or Social Security); the debt has already been paid; the judgment is not valid; or the creditor is not the real owner of the debt. You must file the objection in writing and may need to include documents that prove your claim — such as bank statements, pay stubs, or proof of payment.
Some states allow you to object without going to court. You can send a written statement to the court explaining why the garnishment should not proceed. Other states require you to appear in court or have an attorney represent you. Check your state's court website or call the court clerk to learn the exact procedure and deadline in your area.
If you file an objection, the court will hold a hearing or review your written claim. If the court agrees with you, it will order the bank to release the frozen funds. If the court disagrees, the bank will transfer the money as originally ordered.
What happens after the bank transfers the money
Once the hold period ends and no objection has been filed (or an objection was filed and denied), your bank transfers the garnished funds to the court or directly to the creditor, depending on your state's procedure. This usually happens within one to three business days after the hold period expires. The money is gone from your account and goes toward the judgment debt.
A single garnishment may not collect the full amount owed. If the judgment is for $5,000 and your account only has $1,200, the creditor can garnish that $1,200 and then file another garnishment later. They can also garnish your wages (up to 25% of your disposable income) or place a lien on property you own. Garnishments can repeat until the debt is paid in full, plus interest and collection costs.
After the garnishment is complete, your account is unfrozen and you can use it normally again. However, if another garnishment is filed, the same process repeats. You will receive notice from your bank or the court when a new garnishment arrives.
Preventing future garnishments and managing the debt
Once a judgment exists, the creditor can garnish your account repeatedly. The only way to stop garnishments is to pay the debt, negotiate a settlement, or file for bankruptcy. Bankruptcy stops all garnishments immediately through an automatic stay, though the debt still exists and must be handled in the bankruptcy case.
If you cannot pay the full amount, contact the creditor or their attorney to discuss a payment plan or settlement. Many creditors will accept a reduced lump sum or monthly payments in exchange for stopping collection efforts. Get any agreement in writing before you pay.
Some states allow you to keep a small amount of money in your account by claiming it as exempt. If your state has a personal savings exemption, you can protect a certain dollar amount (often $1,000 to $2,500) from garnishment. You typically claim this exemption by filing a form with the court before a garnishment is served. Ask your court clerk whether your state offers this protection.
Frequently Asked Questions
Can a garnishment take money from a joint account?
Yes, if your name is on the account, a garnishment can freeze and take money from it — even if the other account holder is not responsible for the debt. The other person can file a claim of exemption to recover their share of the frozen funds, but they must act quickly and provide proof that the money belongs to them.
What if I do not receive notice of the garnishment?
Your bank is required to notify you, but the timing and method vary by state and bank. Some banks send notice by mail after the freeze; others post it online. If you discover your account is frozen, contact your bank immediately to confirm a garnishment was served and ask for a copy of the writ. You can still file an objection even if you did not receive formal notice, as long as you act within your state's deadline.
Can a garnishment take money from an account I just opened?
Yes, if the garnishment writ lists your name and the creditor knows which bank you use. The bank will freeze the account once the writ arrives, regardless of how new the account is. However, if the account is brand new and has no money in it yet, there is nothing to garnish. The creditor may file another garnishment later if you deposit funds.
Will a garnishment affect my credit score?
The garnishment itself does not appear on your credit report. However, the underlying judgment that led to the garnishment will appear and will damage your credit score. The judgment stays on your credit report for seven years in most states, even after the debt is paid.
Can I move my money to a different bank to avoid garnishment?
Moving money after you know a garnishment is coming may be considered fraud. If the creditor can show you moved money to avoid paying a judgment, they can pursue additional legal action against you. If you move money before a garnishment is filed and before you are aware of the judgment, that is generally legal — but once you know a judgment exists, moving money to hide it is not.