After a financial obligation collector sues you for the financial obligation and wins a judgment, it could get a court purchase for the bank or credit union to make over cash from your bank account or card that is prepaid. That is called a вЂњgarnishment.вЂќ A U.S. Department of Treasury guideline requires banks to immediately protect particular federal advantages from being frozen or garnished if they’re direct deposited into the account. There are exceptions to the guideline, that are explained below. Find out about the way the automated protection works.
Advantages included in this guideline:
Your bank or credit union must immediately protects 2 monthsвЂ™ well worth of benefits
If a collector attempts to garnish money in to your account, your bank must have a look at your bank account history to see in the event that you received some of the above advantages by direct deposit within the last few 2 months. The lender must protect 2 monthsвЂ™ well worth of benefits from garnishment and enable you to make use of that cash. When your account has significantly more than 2 monthsвЂ™ worth of benefits, your bank can garnish or freeze the money that is extra. But, if it more money that is garnished is exempt from garnishment under federal or state legislation, you may well be in a position to visit court to possess your hard earned money released. Read more