How to Stop Garnishment of Bank Account
It is a terrible feeling once you realise that the money you had in your bank account is now gone. What’s even worse is realising that this can be done legally and the bank will let it happen. This is because your creditors, once they have a court order against you, can take the funds from your bank account as a way of recovering the debt you owe them. In this instance, your bank is powerless to protect your money.
Your options:
- Check out the options available to you in your state of residence. Some states will allow you to open a special bank account that is exempt from creditors (“an exempt account”). This means that creditors cannot touch the funds you have in this account.
- Another thing you can do is cancel the direct deposit of any income into your bank account. Consult with your employer or clients (if you own a business) and have them pay you either by check or cash. Granted, it is a bit archaic, but at least you get peace of mind by having your money safe in your hand at the end of the day. Your creditors cannot withdraw funds that aren’t there in the first place, so dealing in cash is a good way to stop garnishment of a bank account.
- The last option available to you is to open an account in another country. This is called offshore banking and there are many overseas banks that accept United States citizens and even deal in US currency. The benefit of this bank account is that you still have access to your funds via online banking and your creditors can’t touch funds that are outside the United States – so your money is safe.
There is nothing worse than discovering that your bank account is empty, especially when you are getting paid and you know the funds should be there. It does feel like a gross violation of privacy on the part of your creditors, but it is avoidable by following the above steps.
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