Due Process

• Creditors and vendors have the right to pursue compensation via bank account garnishment if you do not pay. However, to get money from your bank account, the creditor or vendor must follow due process. This means it must try to contact you about your account delinquency and notify you about its intention to file a lawsuit. It also means the creditor must have a formal court order ---- that is, a judgment --- against you that dictates it has authority to take your money. Generally, creditors and vendors try to collect via property liens and wage garnishment before they turn to bank accounts.
  
  

Separate Versus Community Property States

• In most cases, there is no limit on how much a creditor or vendor may take from your account. Usually, court orders indicate that the creditor is entitled to any money already in or deposited into the account until your debt is satisfied. However, the caveat to this depends on whether the state in which the debtor resides is a separate or community property state. Most states are separate property states, in which you and a spouse are responsible for your own debts. In these states, if your spouse owes a debt, you can stop a creditor from taking all the money in a joint bank account by proving what percentage of the account funds is yours. If the account is only in your name, creditors and vendors cannot look to your account for a debt your spouse has. In a community property state, just the opposite is true. The government sees you and a spouse as one unit, so even if your spouse's name isn't on the account, the creditor or vendor still can seek compensation from your account funds.
  
  

Statute of Limitations and Judgments

• To get money from your bank account, the creditor or vendor must file a lawsuit against you prior to the expiration of the statute of limitations. Depending on the type of debt you have and the state in which you live, the statute of limitations is anywhere from two to 15 years. In some cases, creditors may renew judgments, meaning they essentially have the right to try to get money from your account indefinitely.
  
  

Considerations

• If a creditor or vendor tries to garnish your bank account, you basically can't use the account, as any money you deposit will go to the creditor or vendor until the debt is paid. This means that, if you face garnishment of a bank account, it is to your benefit to make a plan for how to handle other payments, as you likely won't be able to continue automatic payments, write checks or use your debit card. You should notify any service provider or other creditor or vendor connected to the account and make alternate payment arrangements, if necessary.