What Are Your Rights When Facing Bank Account Garnishments?
When creditors seize your funds, it can feel like your financial stability is slipping away. At Hoke Law Firm, we understand the stress and uncertainty that comes with bank account garnishments.
That’s why we’re committed to helping you protect your rights and explore every available option, whether you’re dealing with unpaid medical bills, delinquent taxes, or a judgment from a personal injury case.
Our firm has guided countless Louisiana residents through the garnishment process, and we’re here to walk you through how garnishments work, what defenses you may have, and how filing for bankruptcy can sometimes put a stop to creditor actions.
What Is Bank Account Garnishment?
Bank account garnishment is a legal process by which a creditor obtains a court order to withdraw funds directly from your bank account to satisfy a debt. Under Louisiana law, garnishment may be permitted for various types of debts, including child support, unpaid taxes, and judgments from civil lawsuits.
When a creditor secures a judgment against you, they can request a writ of garnishment from the court. Once the writ is issued, your bank must freeze the garnished funds and, after a waiting period, remit them to the creditor.
Because garnishment affects your day-to-day funds, it’s essential that we explore every avenue to protect exempt income and potentially challenge the garnishment before funds are disbursed to the creditor.
Federal vs. Louisiana Law
While federal statutes provide baseline protections for certain types of income—such as Social Security and veterans’ benefits—Louisiana law adds additional layers of protection.
For instance, Louisiana Revised Statutes § 13:3881 limits garnishment of wages and bank accounts to a percentage of disposable earnings, though this primarily applies to wage garnishment. When it comes to bank accounts, federal exemptions often intersect with state-specific rules.
In many cases, we’ll rely first on federal exemptions to shield essential benefits, then turn to Louisiana’s own exemption statutes to cover additional income types. This dual approach helps us maximize the amount of income you retain during difficult financial times.
Grounds For Garnishment
Creditors must satisfy several procedural steps before garnishing your account:
Obtain a judgment: A creditor must sue you, prove you owe the debt, and secure a court judgment.
Serve garnishment papers: The creditor must serve both you and your bank with a writ of garnishment.
Wait for the answer period: Louisiana law allows you 15 days to file an objection or answer contesting the garnishment.
Bank response: Your bank has 15 days after service to notify the court how much is in your account.
By understanding these steps, we can identify procedural missteps by the creditor that may allow us to challenge the garnishment before any funds are removed.
Notice Requirements
Before your bank account can be frozen, you’re entitled to notice and a chance to object:
Service to you: You must receive written notice of the garnishment writ at least 15 days before the bank freezes your account.
Service to your bank: Your bank must also be served; Louisiana banks typically have 15 days to respond in writing about the account balance.
Objection period: You have 15 days after service to file an objection or a motion to quash the garnishment.
Missing any of these notice requirements can be grounds for dissolving the garnishment writ. We make sure to review all service documents for defects.
Exempt Funds and Protections
Some types of funds are exempt from garnishment under both federal and state law:
Social Security benefits: Funds from Social Security, SSDI, and SSI are fully exempt.
Veterans’ benefits: VA disability and pension benefits can’t be garnished.
Unemployment compensation: State and federal unemployment benefits are protected.
Child support and alimony: Although these arrears can be garnished, current support payments are typically off-limits.
Public assistance: Funds from SNAP, TANF, and other need-based programs are exempt.
These exemptions mean that even if your account is garnished, essential benefits should remain accessible.
Additional Louisiana Protections
Louisiana statutes further protect certain retirement accounts and public employee pensions. If we identify exempt funds in your account, we file a motion to release those amounts so you can cover essential living expenses.
Defenses and Challenges
When a garnishment writ is defective or unjustified, we can challenge it by:
Filing a motion to quash: If the creditor failed to provide proper notice or missed procedural deadlines, we ask the court to dissolve the garnishment.
Claiming exemptions: We prepare a detailed affidavit listing exempt funds and submit it before the garnishment occurs.
Arguing undue hardship: In rare cases, we may show that garnishment imposes an undue hardship on your family’s ability to pay for necessities.
By aggressively contesting flawed garnishments, we often recover frozen funds before they reach creditors.
Impact of Bankruptcy on Garnishment
Filing for bankruptcy can provide an automatic stay that halts all creditor actions, including garnishments. Under the U.S. Bankruptcy Code:
Immediate stay: The moment we file your petition, an automatic stay prevents creditors from garnishing your bank account.
Chapter 7 discharge: In a Chapter 7 case, surviving debts are discharged, and garnishments tied to discharged debts must stop permanently.
Chapter 13 repayment plan: Under Chapter 13, we structure a plan to repay debts over three to five years, and garnishments cease while payments are made through the trustee.
Because bankruptcy offers powerful protection, we often recommend it as an effective way to regain control of your finances and protect your bank account from further garnishment.
Alternatives to Garnishment
Before things escalate to garnishment, there are other tools we explore:
Negotiation: We contact creditors to arrange a payment plan or lump-sum settlement.
Offer in compromise: For tax debts, we negotiate with the IRS or Louisiana Department of Revenue for a reduced payoff amount.
Lien releases: In cases of property liens, we negotiate releases or subordination to free up other assets.
Often, reaching an agreement before garnishment saves time, reduces costs, and avoids the stress of frozen accounts.
Process for Contesting Garnishment
When you decide to fight garnishment, we follow these steps:
Review garnishment writ and service documents.
Identify all exempt funds and prepare a detailed exemption affidavit.
File a motion to quash or modify the garnishment within 15 days.
Attend any required hearing and argue on your behalf.
If necessary, appeal adverse rulings to protect your rights.
This structured approach gives us the best chance of releasing your funds quickly.
How to Prevent Future Garnishments
Before reaching the point of a garnishment, we can take proactive steps to protect your finances and avoid creditor actions:
Maintain Accurate Records
Keeping up-to-date records of your income, debts, and payments helps you identify potential issues early. If you receive notices of overdue balances, you can address them before they escalate.
Communicate With Creditors
Open lines of communication often lead to more flexible arrangements. We encourage you to contact creditors at the first sign of difficulty to negotiate payment plans or request temporary relief.
Build an Emergency Fund
Even a modest cash reserve can help you cover unexpected expenses and prevent the need to borrow at high interest rates. Regular contributions to savings, no matter how small, can make a big difference over time.
Monitor Your Credit Report
Reviewing your credit report annually allows you to spot errors or unauthorized accounts. Disputing inaccuracies promptly can keep debts from going into collections and, ultimately, avoid garnishment.
These steps, combined with our guidance, can reduce the risk of future garnishments and help you maintain control over your financial well-being.
Contact Us Today
If you’re facing a bank account garnishment in Louisiana, we’re here to help. At Hoke Law Firm, we serve clients in Baton Rouge, Louisiana, as well as the neighboring areas of New Orleans and Lafayette. We’ll review your case, identify exemptions, and determine whether filing for bankruptcy or pursuing other defenses makes the most sense. Don’t let creditors drain your essential funds—reach out for personalized guidance today.