Question 1

Can I open a new bank account?

Accepted Answer

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.

Question 2

How do I stop a wage garnishment?

Accepted Answer

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.

Question 3

Why was my bank account frozen without warning?

Accepted Answer

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.

Question 4

Can a debt collector take my Social Security?

Accepted Answer

Generally not for ordinary debts. Banks must protect two months of federal benefits paid by direct deposit. Some government debts are different.

Question 5

How much of my paycheck can be garnished?

Accepted Answer

For most debts, up to 25% of disposable earnings under federal law, or less for low earners. Some states protect more.

Question 6

What is a claim of exemption?

Accepted Answer

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.

Question 7

Can I get a judgment set aside if I was never served?

Accepted Answer

Often yes. If you weren’t properly notified of the lawsuit, ask the court to vacate the default judgment. Act quickly.

Question 8

Will the bank charge me fees for a levy?

Accepted Answer

Many banks charge a levy fee. Ask the bank, and include it in your records if you challenge the levy.

Common questions: Frozen account or garnishment