How to Avoid Checking Account Garnishment
One of the most disturbing things that can happen to you is to have the money disappear from your checking account. What’s even more disturbing is that your creditors – the people you owe money to – are able to legally take the funds from your account, without notice to you, once they have filed a judgment against you and obtained a court order. Of course, you are within your legal rights to fight the matter in court, against your creditors, to get your money back. But if that creditor has a judgment in hand, you will surely lose.
This will cost you a pretty penny in legal fees and you might ask yourself the question – can you really afford to rack up more debt in legal fees to get a few thousand dollars back? Of course, this doesn’t make sense, especially when the reason your checking account is being emptied in the first place is because you have unpaid debts! What does make sense is to avoid this horrible situation in the first place.
- In some states, you are able to set up an exempt bank account. This is a bank account that creditors cannot garnish. Your bank will be able to tell you if you can set up an exempt account. It can be a complex process, but it is one way to avoid checking account garnishment.
- Stop all direct deposits into your checking account. Instead, organise with your employer to pay you the old fashioned way – by check. You can then go and cash this check, and have money in hand. Whilst it is a bit of a hassle to reorganise how your employer pays you, it is worth it so that you can assume control over the money you receive.
- Another possibility is opening an offshore bank account. This is a perfectly legal way of making sure you avoid checking account garnishment as creditors in the United States are unable to access funds in bank accounts outside the country.
No one likes the idea of having their checking account emptied by their creditors. Don’t bury your head in the sand: if you can’t afford to pay your creditors, make sure you judgment proof your assets (and that includes your checking account!).
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