garnishment levy?

Question

Is it legal for a collection agency to place a garnishment on a checking account without prior notification and totally take your entire paycheck? They did win a judgement against me and then without notice took my entire wages out of my account. What are my options?

Answer 1

If there is a judgment against you, it is legal for the party trying to collect to garnish your checking account, and take whatever is in there. They do it without notice so that you can't withdraw the money from the bank.

Your options are slim to nil at this point. In order to get your money back, you'd have to prove that the garnishment was not conducted legally. That's not likely to happen if you did, in fact, owe the debt.

Ethically speaking, they should have garnished your wages instead of your checking account (although it was probably legal for them to do what they did). Most states have laws that limit the percentage of a paycheck that can be garnished.

If the debt has not been completely satisifed, I would stop depositing any money in the bank where the garnished account is held. If you have direct deposit, turn it off. Find a new bank, and put your money in it. Because if the entire garnishment hasn't been satisfied, the bank must also hold all future deposits between now and the garnishment's return date. And even if the return date comes and goes, if they didn't get everything they wanted, they'll be back with another garnishment.

Good luck.

Answer 2

A lot of it depends on your state. In California, the garnishment company must notify you, and when they notify your employer, your employer must notify you as well. In many cases, the employer must wait 10 days before starting the garnishment, except in the case of child support, which is immediate.

The maximum percentage that can be withheld in California is 65%, but that is in special cases for child support. Usually, the max is 50%. For orders such as levies, the amount is 25% of disposable income (gross less taxes). Student loans are 10%. The biggest hit can come from the IRS. They leave you a certain amount based on the number of exceptions that you claim. If you claim, for example, single and one exemption for a bi-weekly pay period, they leave you around $300 take home pay.

In any case, you should contact the agency that is garnishing your wages, your employer (and get a copy of that order!), and whatever legal entity approved the garnishment (if there was one). Hope this helps.

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I just realized that you were talking about a checking account, and not a paycheck. If it was your checking account, then ask your bank for a copy of the order and pursue it in that way. You are not without rights.

Answer 3

If I just received the latter from my employer about this levy. It was dated I had to turn in some paper work 11/14 and the levy will start coming out this pay period 11/18. what should i do call payroll and IRS re this matter and see if i can set up payment installments through IRS or is it to late

Answer 4

they called and asked you to pay but you didn't...they said if you do not pay they will take you to court and you didn't pay. you went to court and lost and you did not pay. they must notify you. when did they not notify you that you owe them money. two days after they took money out of my account i learned how to collect judgments. some lawyers charge 33% to take a case but they have to win. i charge 50 percent on what i collect and i don't ever go to court...i only take cases where i can collect 10 grand or more.

Answer 5

If they got the judgment, you have no options. They can levy your bank accounts, they can even take personal property to be sold at auction if they want to. Your only option is to pay the judgment.

Answer 6

If they got a judgement you MUST pay the bill, no options except Bankruptcy.