Protect your wages and bank account

After a judgment, a creditor can ask the court to take money from your pay or your bank account. That is how most debt judgments get collected. But the law protects some money, and you often have to claim that protection yourself, quickly. This guide explains how.

Wage garnishment: your paycheck

Wage garnishment means your employer must send part of your pay to the creditor by court order. For ordinary debts, federal law caps it at 25% of your take-home pay, or the part above 30 times the federal minimum wage if that is less (15 U.S.C. 1673(a)). Many states protect more, and a few protect most wages from ordinary consumer debts. Each state page quotes the state's limit, taken from the checked data of our sister site, Debt Collector Map.

Bank levy: your bank account

A bank levy, or bank garnishment, means the bank freezes money in your account and may have to pay it to the creditor. Your bank must automatically protect up to two months of Social Security, SSI, VA and some other federal benefits that were paid in by direct deposit; you don't have to ask (31 CFR 212.5, 212.6). Money above that, or benefits you cashed and redeposited, may need a claim. Some states also protect a dollar amount in every account.

What is exempt

Exempt means protected by law. Common exemptions include Social Security and SSI, veterans' benefits, unemployment, workers' compensation, public assistance, child support you receive, many retirement accounts, and part of your wages. States also protect some property, such as part of the value of a home or a car. The list and the amounts differ by state.

How to claim an exemption

With a garnishment or levy, you usually get a notice that lists the exemptions and includes a claim form. Fill it in, sign it, attach proof such as a benefit award letter or bank statements, file it with the court or the officer named on the notice, and send copies as the notice says. Deadlines are short: in our guides they run from 3 days (Nebraska) to 30 days after the notice or the seizure, depending on the state and what was taken. Use the exemption calculator on your state's page, and the free cover letter below to send with your claim.

If exempt money was taken anyway

Banks and employers make mistakes. If protected money was frozen or paid out, file the exemption claim anyway and tell the court where the money came from. Keep exempt money, such as benefits, in an account where it is not mixed with other money; that makes it easier to prove. If a debt collector took money it knew was protected, that may break federal law too (15 U.S.C. 1692f).

The hearing

If the creditor objects to your claim, the court holds a hearing. Bring proof of where the money came from. In many states, if the creditor does not object in time, the money is released. If you need an interpreter, ask the clerk before the hearing.

How long a judgment lasts

A judgment can last many years. In our guides, the first period runs from 5 to 20 years, and many states let the creditor renew it. Interest can also keep adding up. Compare states in the judgment interest and duration table.

Step by step

1. Open every notice from the court, your bank or your employer the day it comes.
2. Find the deadline to claim exemptions and count it on your state's page.
3. Gather proof: award letters, pay stubs, bank statements.
4. File the claim form with the cover letter below, and keep copies.
5. Go to the hearing if there is one.

If the judgment came from a default, you may also be able to set it aside: read what to do after a default judgment. This is general information, not legal advice; each state page lists free legal help.