# Your bank account was frozen or your pay is being taken > Find out who froze the account and why: ask for the creditor, case number and amount. Most creditors need a court judgment first. Two months of directly deposited Social Security, SSI or VA benefits are usually protected, and states may protect more. File a claim of exemption fast, because deadlines are short. Federal law generally limits wage garnishment to 25% of take-home pay. Legal aid can help, including undoing a judgment you were never told about. - URL: https://explained.page/bank-account-frozen-garnishment - Language: en - Last checked: 2026-10-29 - Watch the 1-minute animated guide: https://explained.page/watch?start=bank-account-frozen-garnishment ## Step by step 1. **Your bank account was frozen, or your pay is being taken?** Act fast. There are short deadlines to protect money the law says they can’t take. 2. **Find out who and why.** Ask the bank or your employer for the paperwork: who the creditor is, the court case number, and the amount. 3. **It usually follows a court judgment.** Most creditors must sue and win before taking your money. Many people never saw the lawsuit. Some, like the IRS, federal student loans or child support, can collect without suing. 4. **Some money is protected.** Banks must usually protect two months of Social Security, SSI or VA benefits paid by direct deposit. Many states protect more, like part of your wages. 5. **File a claim of exemption, fast.** This asks the court to release protected money. Deadlines are often just days. The paperwork you got should explain how. 6. **Wage garnishment has limits.** For most debts, federal law limits it to 25% of your take-home pay, or less if you earn little. Some states set lower limits. 7. **Get free legal help.** Legal aid can help you claim exemptions, and if you were never properly told about the lawsuit, ask the court to undo the judgment. 8. **Look it up the right way.** Search with your town or state in the words. Pick the official site: it usually ends in .gov. Skip ads and sites that charge for free forms. ## Checklist - Get the paperwork: who, case, amount - Check for a judgment you didn’t know about - Know what money is protected - File a claim of exemption fast - Know the wage garnishment limits - Get free legal help ## Find out who and why Ask your bank or employer for the paperwork: the creditor, the court case number and the amount. ## How it usually happens Most creditors must sue you and win a judgment before freezing your bank account (a levy) or taking part of your pay (a garnishment). Many people never saw the lawsuit. Some, like the IRS, federal student loans and child support, can collect without suing. ## Protected money - Banks must usually protect two months of federal benefits paid by direct deposit, like Social Security, SSI and VA benefits. - Many states protect more, such as part of your wages or a set amount in your account. ## Claim your exemptions File a **claim of exemption** with the court to release protected money. Deadlines are often only days. Follow the instructions in the papers you received. ## Wage limits For most debts, federal law limits garnishment to 25% of disposable pay, or less for low earners. Some states set lower limits. Child support, taxes and student loans have different rules. ## If you never knew about the case You may be able to ask the court to set aside (undo) the judgment. Legal aid can help. ## Common questions ### Can I open a new bank account? You can, but a creditor with a judgment may be able to levy it too. Protecting exempt money through the court is usually the safer fix. Source page: https://explained.page/bank-account-frozen-garnishment/questions/can-i-open-a-new-bank-account ### How do I stop a wage garnishment? Options include claiming exemptions, negotiating a payment plan with the creditor, undoing a judgment if you weren’t properly served, or in some cases bankruptcy. Source page: https://explained.page/bank-account-frozen-garnishment/questions/how-do-i-stop-a-wage-garnishment ### Why was my bank account frozen without warning? Usually because a creditor won a court judgment and sent a levy to your bank. The bank must hold the money, but you can claim protected funds. Source page: https://explained.page/bank-account-frozen-garnishment/questions/why-was-my-bank-account-frozen-without-warning ### Can a debt collector take my Social Security? Generally not for ordinary debts. Banks must protect two months of federal benefits paid by direct deposit. Some government debts are different. Source page: https://explained.page/bank-account-frozen-garnishment/questions/can-a-debt-collector-take-my-social-security ### How much of my paycheck can be garnished? For most debts, up to 25% of disposable earnings under federal law, or less for low earners. Some states protect more. Source page: https://explained.page/bank-account-frozen-garnishment/questions/how-much-of-my-paycheck-can-be-garnished ### What is a claim of exemption? A form you file with the court to show some of your money is protected by law, like benefits or a portion of wages. Deadlines are short. Source page: https://explained.page/bank-account-frozen-garnishment/questions/what-is-a-claim-of-exemption ### Can I get a judgment set aside if I was never served? Often yes. If you weren’t properly notified of the lawsuit, ask the court to vacate the default judgment. Act quickly. Source page: https://explained.page/bank-account-frozen-garnishment/questions/can-i-get-a-judgment-set-aside-if-i-was-never-served ### Will the bank charge me fees for a levy? Many banks charge a levy fee. Ask the bank, and include it in your records if you challenge the levy. Source page: https://explained.page/bank-account-frozen-garnishment/questions/will-the-bank-charge-me-fees-for-a-levy ## Official sources - [CFPB: garnishment and frozen accounts](https://www.consumerfinance.gov/) - [U.S. Department of Labor: wage garnishment limits](https://www.dol.gov/) - [Legal Services Corporation: free legal aid](https://www.lsc.gov/) To find your local office, search for: - "[your county] court claim of exemption" - "[your state] wage garnishment limits" --- General information, not legal or professional advice. Rules differ by state. From explained.page (www.explained.page). Life’s stuff, explained simply.