Can a Debt Collector Garnish My Bank Account in Georgia?

A bank garnishment can freeze the funds in your account without warning after a judgment.

In my previous posts, I explained how a creditor must first file a lawsuit and obtain a judgment before garnishment can happen, why ignoring the lawsuit is the biggest mistake, and how much of your paycheck can be taken.

But there is another type of garnishment that often catches people completely off guard.

A creditor can also garnish your bank account. In other words, they may be able to take money directly from your account.

Many consumers assume garnishment only affects wages. That is not the case. Once a creditor obtains a judgment, they may pursue both wage garnishment and bank garnishment.

The difference between the two matters.

A wage garnishment happens over time. The law limits how much can be taken from each paycheck, generally up to 25 percent of disposable earnings.

A bank garnishment works differently.

Instead of taking a portion over time, a bank garnishment is typically a one time event. When the bank is served, the funds already in the account are frozen, and by the time you find out, it has already happened. There is no gradual reduction, and no meaningful warning.

In some cases, consumers are dealing with both at the same time, a wage garnishment affecting each paycheck and a bank garnishment freezing the money already in the account.

All of this only happens after a judgment.

If you prevent the judgment, you prevent both wage and bank garnishment.

In my next post, I will explain what income cannot be garnished, including Social Security and disability benefits.

If you have been sued by a creditor in Georgia, responding to the lawsuit and understanding your options for debt collection lawsuit defense may help prevent a judgment and avoid garnishment. You can contact Kaiden & Kaiden, LLC to discuss your situation.

About the Author

Cristina Kaiden, Esq. is a consumer debt defense attorney and co-founder of Kaiden & Kaiden, LLC in Cobb County, Georgia. For more than two decades she has represented individuals facing debt collection lawsuits, default judgments, and wage garnishments in Georgia courts. She writes about debt collection defense and consumer rights to help consumers understand their legal options.