0
If wage garnishment is in place by the IRS can another creditor with a judgment levy my bank account?
Wiki User
∙ 15y ago
Yes, the debtor's bank account could still be subjected to levy by a judgment creditor. Garnishments and levies must run consecutively, meaning that there cannot be multiple creditors enforcing judgments at the same time in the same manner.
Wiki User
∙ 15y ago
Add your answer:
Earn +20 pts
Can more than one creditor issue a bank garnishment and payroll garnishment at one time?
Not by creditors. The exception to multiple wage garnishments are, child support, federal or state tax arrearages and in rare cases spousal maintenance. Therefore a creditor could garnish wages at the same time of garnishment by the aforementioned.
If you want to start a wage garnishment and already have a Writ of Judgment do you need to follow the laws in the creditor's state or the debtor's state?
You can only conduct a wage garnishment in the state where the judgment was entered. If the debtor lives in another state, you will need to register the judgment where the debtor lives and use the laws of that state to start the wage garnishment.
How many garnishments can one person have at a time?
Wage garnishments cannot run concurrently, each garnishment judgment must be satisfied before another can be enforced. Creditors however have other options for executing judgments, therefore if a wage garnishment order is active, a different creditor holding a judgment can use it for bank account levy, seizure and sale of non-exempt property and liens against real property belonging to the debtor(s). Texas, Pennsylvania, N.Carolina and S.Carolina do not allow wage garnishment for creditor debt. All wage garnishment for creditor debt only can be appealed by the debtor if he or she so chooses by using a "hardship" defense.
If you have two debtors seeking garnishments are they both allowed 25 percent of your pay or a total of 25 percent combined?
Judgment creditor garnishments must run consecutively. The creditor who received and executed the judgment first will be paid before another creditor can garnish the debtor's wages. If federal garnishment is used rather than state then it can be a maximum of 25% of disposable income with the first weekly based $154.50 exempt from garnishment. Please be advised, if there is child support deduction order in place it takes priority, with the primary judgment creditor's garnishment still valid but secondary in collection.
What are the state of Illinois garnishment statutes?
You can find the garnishment statutes in the Illinois Compiled Statutes starting at the section 735 ILCS 5/12-701. The Illinois Garnishment statute sets out the law regarding the garnishment of a third party such as an employer, insurer or other parties that might hold assets of another. For example, if you get into a car accident and you are sued and a judgment is entered against you, the plaintiff/judgment creditor might file a garnishment against your insurance seeking payment of the judgment from your insurance company. In other cases, a judgment creditor might garnish your bank to take the money from your accounts. You can look up the sections of the statute at your local law library or online. There are several websites with the exact language of the statute.
What does 'attach your bank account' mean?
'Attach' is another term used for the action taken when a bank account is levied by a judgment creditor. In the majority of instances a judgment creditor can execute the writ against a bank account held by the judgment debtor (or jointly with another party) and withdraw the amount owed until the judgment is paid. State law determines the judgment terms, therefore the levy process will differ somewhat from state-to-state. Generally a bank levy has a specified time in which funds can be seized, then the judgment must be refiled with the clerk of the issuing court before more monies can be taken from the account. A very few US states will not allow the levy of a bank account by a judgment creditor when it is held by a married couple as Tenancy By The Entirety.
How long does it take for the bank to release a garnishment?
The bank must adhere to terms of the court order for the levy of the account, and the laws relating to such can greatly differ from state-to-state. In some states a bank account levy is for one time only, and the entire amount of funds in the account can be seized up to the full amount of the judgment. If that does not satisfy the debt, the creditor must go back to court and be granted another judgment for another levy. In other states the account can be levied several times during a specific time period, meaning each time a deposit is made the bank must turn that money over to the judgment creditor. Information on the specific nature of the levy can be obtained from the account manager of the bank where the levy was executed or in some instances from the clerk of the court where the judgment was entered.
Can more than one creditor garnish your wages?
Garnishments cannot run concurrently only consecutively. The first garnishment would need to be paid before another judgment creditor would be able to garnish the debtor's income. Court ordered child support deductions are not considered true garnishments and can be active at the same time that a creditor garnishment is implemented. Also, multiple creditors can execute judgments by other means, such as liens against real property belonging to the judgment debtor.
Who can garnish wages in the State of Florida?
Anyone who is owed money and who receives a valid court judgment to do so. This includes but is not limited to, child support, spousal maintenance, creditor debt, monies owed individuals, medical issues (hospitals, doctors, dentist, caregivers). In theory, anyone who is owed money can file suit, receive a judgment and execute the judgment order in the form of wage garnishment of the judgment debtor. Please note, wage garnishments must run consecutively they cannot run concurrently. There is one exception, garnishment for tax arrearages and child support are usually allowed to be active while a second garnishment from another creditor is "running".
What can collection agencies seize?
State laws determine the property that can be excempt from a judgment creditor. Generally it will be the same property which is considered exempt during bankruptcy with a few exceptions. The major exception would be the homestead exemption amount and/or the ability for a judgment creditor to force the sale of a primary residence. Another issue that could impact the judgment execution against any property is whether the debt applies to married couples who are not co-debtors and do not live in a community property state. The majority of judgment creditors prefer the use of wage garnishment when executing the judgment writ. In lieu of that the second choice is usually bank account levy.
Can a joint bank account be frozen by a judgment creditor?
A joint account can be frozen by a judgment creditor of one owner. That can cause not only an indeterminate period of inconvenience for the non-debtor owner but also may result in the loss of half of the funds in the account. You should not open a joint account with another person who has a history of debt problems. You can read more about frozen bank accounts in general at the link provided below.
In Tennessee how many multiple wage garnishments are allowed by law?
The state does not allow simultaneous wage garnishment. One garnishment action by a creditor must be completed before another can be instated. Note: Garnishments for tax arrearages and/or child support are not "true" garnishments and they can be active in conjuction with a creditor wage garnishment.
