Legal Judgment

• A private creditor cannot simply garnish any amounts held in your bank accounts without proper authorization, even if he has already obtained your bank account information. He must file a civil lawsuit for the debt you owe and obtain a legal judgment from the court. The creditor may then petition the court for a writ of garnishment, which authorizes the creditor to order garnishment of funds in your bank account.
  
  

Bank Garnishment Process

• Although procedures vary by state, a judgment creditor typically executes garnishment by sending the bank an order to freeze your account. This means that you cannot make any withdrawals from the account, and the bank will not pay checks or auto drafts drawn on it. After a waiting period determined by state law, the bank will turn over the funds in the account to the court or the creditor.
  
  

Social Security Disability Exemption

• Although most states permit garnishment of your employment earnings, federal law prohibits the garnishment of Social Security Disability income in most cases. Unless the garnishment is for unpaid child support, federal taxes or alimony, the creditor typically cannot reach these funds. However, banks do not automatically separate exempt funds when turning over your bank account balance to a judgment creditor. This means that the garnished bank account funds may include deposited Social Security Disability payments.
  
  

Preventing Disability Garnishment

• Most courts allow you to challenge bank garnishment, either at a hearing or by sending the court an exemption form, to claim funds in your bank account as exempt from garnishment. You will need to provide evidence that the funds are exempt, such as a direct deposit statement. If you can successfully claim a Social Security Disability exemption before the bank turns over the funds, your disability payment will remain in your account. You may also use the exemption to receive reimbursement of garnished disability funds if the bank has already turned over the money. Hiring an attorney and having the funds directly deposited in an account affiliated with the attorney's law firm may help prevent future garnishments.