Bank Account Garnishment
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Call 866-LEGLAID (866-534-5243) or visit virginialawhelp.org/get-legal-help to find a legal aid office in your area.
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This article is about bank account garnishment in Virginia. The rules are different in other states. If you live outside Virginia, you can find free legal help near you at LSC’s find-legal-aid tool.
Bank account garnishment is when a court orders your bank to freeze money in your account to pay a debt you owe. Unlike wage garnishment, which takes money from future paychecks over time, bank account garnishment hits fast and takes everything. After a creditor gets a judgment against you for a debt owed, the creditor can go back to the court and ask for a bank account garnishment. The garnishment is sent to a bank or credit union where the creditor believes you have an account.
What happens when the court orders a bank account garnishment?
If a court issues a bank garnishment order, your bank or credit union must check your account to see if any of your funds must be handed over to pay the debt. Some of your money is protected. Virginia law allows you to keep $1,000 and any exempt benefits you’ve received by direct or electronic deposit in the past two months. Other money in your account can be taken out and given to the court.
Your bank or credit union should automatically protect your exempt funds if it can identify them as exempt. You do not need to do anything. If your debt is from unpaid child support or spousal support, your bank is not required to automatically protect your funds. If you think the bank made a mistake and took exempt money out of your account, you can request a court hearing.
Here is an example of how the law works
Every month, you receive $1,000 in directly deposited Social Security benefits and $400 in directly deposited unemployment benefits. You have $5,000 in your bank account when the bank receives a garnishment from the court.
Under Virginia law, here is the amount of exempt money in your account:
- The minimum protected amount: $1,000
- Two months of Social Security benefits: $2,000
- Two months of unemployment benefits: $800
The total exempt amount is $3,800. Your bank should automatically protect these funds. Only $1,200 out of your $5,000 should be turned over to the court.
You can ask for a hearing if you think the remaining $1,200 should also be exempt (for example, child support) or if you think the bank incorrectly calculated your exempt amount.
What if too much money is being taken out of my account?
Here are the steps if you must file for additional exemptions:
Go to court and file an exemption claim form (DC-454) right away.
Bring bank statements showing your deposits.
Bring proof that the money came from exempt income. Good examples are Social Security statements and benefit letters.
If you owe a debt to the bank that holds your account, the bank might take the money out of your account. They can do this without a court garnishment order. This is known as an offset, and you should consider opening an account with a different account.
Where can I get free legal help?
Free legal help may be available if you can't afford a lawyer: Call 866-LEGLAID (866-534-5243) or visit virginialawhelp.org/get-legal-help to find a legal aid office in your area.
(If you live outside Virginia, you can also find help through LSC’s find-legal-aid tool or the Senior Legal Hotline Directory.)
If legal aid cannot help you, look for a lawyer using the National Association of Consumer Advocates search tool. Be sure to ask in advance if there is a charge for the initial consultation.