How Long Does it Take to Garnish a Bank Account?

It might shock you to hear this, but it’s true: Sometimes if you fall behind on your debts, creditors and debt collectors can actually take money out of your bank account. This drastic step in the debt collection process is known as garnishing a bank account.

If you’re struggling to pay your bills or have unpaid debts, you might want to try to get debt relief. Getting professional help with your debts could help you avoid worst-case scenarios like having creditors take money out of your bank account. 

Let’s look at the big picture of what it means to garnish a bank account, when creditors and debt collectors can take money out of your account, how long it takes to garnish a bank account—and what you can do to protect yourself.  

The information provided in this article is intended for general informational purposes only and should not be taken as legal advice. For personalized legal advice, consult with a qualified attorney licensed to practice law in your state.

When Can Debt Collectors Garnish a Bank Account?

To garnish a bank account, a person or company must show that you owe them money and that you can't or won't repay the debt in the way you agreed. 

You're the debtor when you owe money, and the lender is the creditor. Sometimes, a debt collection agency will act on behalf of your creditor. 

Creditors (except for some government agencies like the IRS) aren’t allowed to just tell your bank to freeze your account and send your money to them. In most cases, your creditor must first win against you in court and then apply for a court order. 

That court order tells your bank to freeze your account. Legally, your bank must comply. In this way, your bank is required to help your creditor get their money back from you. Even if that means taking money out of your bank account. 

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Garnishment vs. Bank Account Levy

The phrase garnish a bank account refers to a bank levy. Sometimes it’s called an attachment. The word garnish is more often associated with wages. In the same way they can ask for permission to take money out of your bank account, creditors can ask for permission to have part of your paychecks sent to them. That’s called a wage garnishment.

When creditors garnish your wages, this means getting a judgment that forces your employer to send a portion of your paychecks to that creditor until the debt is paid in full.

Whether you call it a levy on your bank account or garnishing a bank account, the result is the same: Money is taken from your account by court order to pay off debt. 

When Can a Creditor Garnish a Bank Account Without a Court Order?

Government agencies could take money from your account without a court order—for example, if you owe past-due taxes, delinquent federal student loans, or child support. But they’ll notify you first.

Also, sometimes banks or credit unions can levy a bank account without a court order and without warning. This is rare but could happen if you have a loan with that financial institution and are late on your loan payments. It’s called the right of offset. It allows your bank to pull money out of your savings account, checking account, or certificate of deposit (CD) if you also have a loan with them and miss a payment. 

Financial institutions disclose the right of offset in the agreement that you sign when you open a checking account, savings account, or CD. In some cases, the lender might even be able to take money from a joint account that you have with someone else.

There are limits on how lenders can garnish a bank account using the right of offset. For example, the right doesn't apply to tax-deferred retirement accounts like IRAs.

How Much Time Do I Have Before Creditors Garnish My Bank Account?

If you’ve fallen behind on your debts and are hearing from debt collectors, one of your biggest questions might be: How long does it take to garnish a bank account? 

A bank account levy generally doesn’t happen suddenly. There's a longer process that has to play out first. If you want to know how long it takes from when you first miss a payment on your credit card or loan to your bank account being garnished, there's no easy answer.

• Different creditors might move faster or slower at collecting debts and taking debtors to court. One creditor might spend a few months contacting you with in-house debt collectors before bringing in a collection agency. Another creditor might hand over your account to a collection agency right away.

• You could delay or avoid garnishment by negotiating a repayment plan. That could pause the whole process for as many months as you stick to the program. 

• It takes time for a creditor to go to court to prove that you owe money. 

• There's no legally established period before a creditor or agency can sue you for debt. That said, suing you is costly. They’ll almost always try other ways to collect first.  

• The waiting time for a court hearing varies from state to state and county to county. Debt collectors and creditors typically can’t levy your bank account until they get in front of a judge. And judges are busy with other cases, so this takes time. 

How long does it take to garnish a bank account in real life? If your creditors move fast and a judge quickly issues a court order against you, you could face garnishment in a matter of months after you first miss a payment. But it’s more common for the legal process to take longer. 

You’ll likely have many opportunities to negotiate an agreement before a creditor garnishes your account.

If you reach the end of the road with the court process and your creditors get a court order to garnish a bank account to pay off your debts, your bank will move fast. A bank will typically take seven to 14 days to follow a court judgment to garnish a bank account. Once you reach this point, you can expect money to move out of your account very soon.  

Can Creditors Garnish a Bank Account Without Notice?

Typically, creditors must get a court judgment to garnish your account. This involves notifying you in writing and giving you a chance to defend yourself and contest the debt in court. 

But in a few rare situations, your bank account can be garnished without a court order.

For example, the IRS and state tax authorities can take money from your account for unpaid taxes. They can do this without a court order. Also, if you owe child support, the government can take money from your wages or bank account without a court order. 

To protect yourself from these situations, be aware of your debts and keep track of your financial obligations. Respond quickly to any legal notices. 

Steps to Unfreeze a Bank Account

A bank typically freezes your bank account when it receives garnishment paperwork from the court. Once you receive a Notice of Garnishment, your money will be unavailable to you or your creditor until a court hearing, when a judge decides what happens next. 

Here are the steps to take to unfreeze a bank account:

• Identify the reason for the freeze. Start by contacting your bank to understand why your account is frozen. Common reasons include unpaid debts, suspected fraud, or legal judgments. Knowing the cause will help you address the issue appropriately.

• Address the underlying issue. If the freeze is due to unpaid debts, try negotiating with your creditors or paying off the debt. For legal judgments, follow the court's instructions. Or, consult an attorney for guidance on fixing the issue.

• Submit required documentation. Gather and submit any needed paperwork to your bank. This includes proof of payment, settlement agreements, and court documents. This documentation is crucial for proving that you have addressed the underlying issue.

• Follow up. Stay in regular contact with your bank to ensure the freeze is lifted as soon as possible. Check your account often. Keep records of all messages and documents submitted. This will help avoid misunderstandings. Follow these steps. They will help you regain access to your funds. They will also help you resolve the freeze on your bank account.

• Get legal help. Look for an attorney in your state who is willing to take on your case. 

Make sure the attorneys you enlist have experience with consumer law, debt collection defense, or the Fair Debt Collection Practices Act (FDCPA). 

If you can’t afford an attorney, you may be entitled to legal aid. Use this website to find a legal aid attorney in your state. And, if you're a service member, consult your local JAG legal assistance office.

When Can a Bank Take Your Money?

When a creditor has a court judgment allowing it to garnish (or levy) your bank account, it can take your money up to the amount owed, plus any fees and costs the court has allowed.The limit will depend on the state where you live. All states have different laws that let you access some of the funds in your account(s). Delaware bans bank account garnishing completely. 

Only a handful of states provide these protections automatically, including California, Connecticut, Delaware, Nevada, Massachusetts, New York, and Washington. You won't have to go to court there, and your bank should know how much to retain for your personal use. 

If you defend your case, with or without an attorney, you must ask the judge to order your bank to let you keep enough money for food and basic living costs. In court, you'll have to provide evidence (like bank statements, other financial statements and pay stubs) that shows the sources of the money in your account. 

How much of your money will be shielded, and whether your protections are automatic or based on a court order, will depend on your state's law. Fourteen states protect less than $300 of your bank balance. Seven states shelter between $3,000 and $10,000. Most states protect less than $1,999. 

Bank Account Funds That Can't Be Garnished

If you receive federal benefits, some of your money is safe from creditors. Some types of federal benefits, including Social Security, Supplemental Security Income (SSI), and income from the Department of Veterans Affairs are protected under federal law. These are called exempt funds.

If you think you might be at risk of a bank levy, keep protected money separate from other funds. For example, if you get SSI and you have a side gig, don’t put your work income in the same account where your SSI is deposited. Otherwise it could be harder to prove what bucket the dollars belong in.

If you receive your benefits by direct deposit to a bank account or prepaid debit card, up to two months’ worth should be protected automatically. If you receive a paper check, you’re entitled to the same protection. But you may need to work with a bank manager to document the source of the funds.  

Which Creditors Don't Need a Court Order to Garnish a Bank Account?

Private sector creditors like banks and credit card companies will typically need a court order to garnish your bank account. But government creditors don’t need a court order. For example, if you owe back taxes to the Internal Revenue Service, the IRS can collect your unpaid taxes without a court order. The Department of Education can also collect arrears on federal student loans without a judge’s permission. 

Federal and state authorities are allowed to freeze your bank accounts for certain unpaid obligations, such as child support.

How to Protect Your Bank Account From Garnishment

If you think creditors might garnish your bank account in the future, you can try to take steps ahead of time to protect your money. It may be possible to have a bank account that no creditor can touch. Your options include:

• Open a bank account in Delaware—the state bans all bank garnishments.

• Keep a separate account for exempt funds (like federal benefits).

• Have your federal benefits deposited directly onto a Direct Express prepaid card—this could help separate and protect your exempt funds.

• Open an exempt entireties joint account with your spouse in certain states. This type of account holds assets owned jointly by a married couple and could be protected from creditors if only one spouse owes the debt. In some states—Florida is one—these accounts are off-limits for garnishment. (But be prepared to argue with your creditors about it in court.) 

• Move money from a joint account into one solely in the name of someone who's not at risk.

Even if you try to take proactive steps to avoid bank garnishment, it still might not work. Creditors might go to a judge and claim that you're trying to evade responsibility for your debt. Judges might not look kindly upon this behavior. 

Instead of trying to game the system or shuffle money around, the best way to avoid a frozen bank account is to talk to your creditors—early and often—before you reach this point in the first place. 

If a creditor has frozen your bank account, approach them and try to work something out. Unfortunately, once they have a judgment against you and a court order for a bank levy, they may have little incentive to negotiate. You might have better chances if you communicate with them before the debt goes to court. 

Here’s the thing: Creditors don’t love to chase after your money and freeze your bank account. It’s often easier and more profitable for creditors to work out an agreement, even if it’s to settle your debts for a percentage of what you owe. Ask your creditors if they’ll agree to debt settlement. You might be pleasantly surprised by how friendly and accommodating your creditors can be. 

Creditors want their money, and it’s easier and faster for them to get paid if you cooperate and talk with them, instead of disappearing, ignoring legal notices, and fighting them in court.