After creditors sue and obtain judgments against debtors, they have the right to garnish debtors’ bank accounts. In Farmington, CT, Greene Law, PC offers a strong legal team led by an experienced bankruptcy attorney to help clients in such situations. Here, they explain how to respond if your bank notifies you of a garnishment.

Bankruptcy Attorney Explains Actions to Take if Your Bank Account Is Garnished

1. Claim Exemptions From Bank Executions

Federal and state laws provide exemptions that protect certain funds from bank executions, which is what Connecticut calls garnishments of bank accounts by judgment creditors. Banks must send judgment debtors notice of executions and exemption claim forms. Debtors use the forms to claim an exemption for $1,000 per execution. They can claim other funds as exempt regardless of the amount, including Social Security and VA benefits, Supplemental Security Income (SSI), worker’s comp, unemployment benefits, and pension and retirement accounts. 

2. Resolve the Debt

Your best solution may be negotiating a debt settlement, or you may be better off filing for bankruptcy. If you are judgment-proof, meaning you don’t have a job and don’t own a home, the best thing to do after claiming your exemptions may be doing nothing at all.

3. Consult an Attorney

You should consult a bankruptcy attorney as soon as possible if you receive notice of a bank execution. Sound legal advice will help you decide whether filing for bankruptcy is a good solution for you. An experienced attorney will check for violations of the Federal Debt Collection Practices Act and the state Creditor Collection Practices Act. You may be able to recover monetary damages.   

At Greene Law, PC, dedicated bankruptcy attorneys provide wise counsel and representation focused on protecting your legal and financial interests. If you receive a garnishment notice, contact them immediately. Call (860) 676-1336, or visit their website to request an appointment. Follow them on Google+ for more helpful tips.