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Banks do not place liens or garnish your paychecks (your employer would have to do that). However, if a garnishment is received by your credit union, they have to freeze any liquid funds in your account at the time the garnishment is received and send the funds to the court (by law). This is regardless of the source of the funds.

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Can a credit union garnish your pay?

If you owe a debt to a bank they can seek a petition from the court to garnish your wages.


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