Bank Account Garnishments
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About Bank Account Garnishments
The Bank Account Garnishment ProcessIn the event that a bank receives a notice of a garnishment, they are required to immediately freeze the debtor's account for certain types of debts, known as "priority" debts. These include:
- Child support

- Spousal support
- Federal taxes
- Student loan debt
- Debts, charges, or overdraft fees to a specific bank
This automatic freeze is done to protect funds due to creditors, otherwise the debtor could withdraw or transfer all funds from their account. However, individuals still need to pay their rent, mortgage, and other bills, and need access to their funds to do so. So what should a bank do?
The American Bankers Association state "Banks are caught between the competing interests of the account holder and creditors. Thus, banks have no choice often except to place a hold on an account and let the debtor and creditor resolve the dispute. To address this, some states have regulations permitting access to certain levels of funds. Check with your state for this rules.
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More About Bank Rules And Procedures For Garnishments
Federal Exemptions For Bank Account GarnishmentCertain types of income cannot be garnished or frozen in a bank account. These funds include:
- Social Security
- Supplement Social Security Income
- Veterans benefits
- Federal, civil service, and railroad retirement benefits
- Student loan and financial aid disbursements
- FEMA aid
State Exemptions For Bank Account GarnishmentUnlike federal exemptions, the state exemptions for bank account garnishment vary by state. This can include the types of funds that are exempt from garnishment, the amount of funds that can be claimed as exempt, and whether the account can be seized at all.
Wage Garnishment RulesClick your applicable state from the table below for your state's wage garnishment rules.