When a person runs up a debt to a creditor, the creditor may attempt to collect the debt by seeking the diversion of the debtor's wages. When wages are diverted from a person's paycheck, this is known as wage garnishment. Generally, garnishment will be applied to a person's wages, but it can also be applied to other income streams. However, garnishment cannot be applied to a debit card.
Debt Collection
When a creditor goes to court to collect a debt, he is seeking the receipt of a civil judgment against the party who owes him money. This civil judgment will be issued when a judge rules that the debtor does indeed owe the money and specifies how much he owes. If the debtor continues to resist payment, the judge, often at the behest of the creditor, may order a garnishment of the debtor's income.
Garnishment
When income is garnished, it is taken out a person's paycheck. Only income can be garnished. Other financial transactions, such as withdrawals from a checking account, cannot be garnished. To qualify for garnishment, an income stream must be consistent enough that the creditor can predict when the income stream will be delivered. Checking accounts, therefore, cannot be garnished, because they are not regular income.
Debit Cards
A debit card is card that allows a person to withdraw money from a checking account, either in the form of cash or to pay for a purchase. A person will use a debit card in an ATM machine or at a retailer who accepts payment via debit card. A debit card cannot be subject to garnishment because the transactions made with the card do not involve income.
Bank Account Seizure
While a debit card cannot be garnished, a bank account that is linked to a debit card may be seized and the creditor may be allowed to draw funds from the account. When an account it seized, it means that a judge had ordered the account frozen. When an account is frozen, the debtor cannot access it. The creditor, however, may be allowed to use funds from the account to pay off the debt owed.
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