- To place a lien on your bank account, your creditor must file a request for garnishment with the court that issued the judgment. Each state has specific guidelines pertaining to bank account levies but generally, the creditor must serve you with a notice informing you of the pending garnishment. The notice will specify how much time you have to object to the garnishment or file exemption claims. If you are unable to reverse the garnishment order, the bank is legally required to turn over funds in your account up to the amount of the judgment plus court costs and fees if applicable.
- Filing a claim of exemption allows you to protect certain deposits in your bank account. Under federal law, you may exempt benefits you receive from Social Security, Supplemental Security Income, federal disability or retirement, student assistance, veterans' benefits, military survivor benefits, railroad worker's compensation, life insurance proceeds, federal and state pensions and distributions from qualified retirement accounts. Depending on your state's laws, you may also be able to exempt unemployment benefits, worker's compensation benefits, public assistance, alimony and child support.
- If your bank account does not contain exempt deposits, you can try other methods to have the lien lifted. For example, you can file a motion to vacate if a default judgment was entered against you because you were never properly served. If the motion is granted, the judgment must be overturned and the garnishment order reversed. You may also attempt to contact the creditor directly to work out a payment arrangement or settlement agreement. If the creditor agrees, it must file a motion with the court to void the writ of garnishment.
- If your bank account does not contain sufficient funds to satisfy the judgment, the credit card company can file for multiple garnishment orders until the debt is paid in full. If you own a joint account with your spouse, relative or other individual, all funds in the account are equally subject to seizure. Generally, the non-liable party must file a separate claim of exemption or an injured spouse affidavit to avoid garnishment of assets in a joint account. If a lien is placed on your bank account, avoid depositing any more money into the account until the garnishment is resolved as these funds will also be frozen.