How to Close a Garnishment Account

A garnishment account is a bank account frozen as a result of a court order or government action. Creditors and debt collectors can obtain the legal right to freeze a debtor's bank account after winning a lawsuit for an unpaid debt. After winning the lawsuit, the court issues a judgment, and the debt collector can ask the judge for the right to garnish the debtor's checking account. A frozen account allows the debt collector to freely withdraw from the account to satisfy the amount listed in the judgment. State and federal governments can also garnish bank accounts for unpaid taxes. The account holder has no access to the account during garnishment except to deposit money. Closing the account usually requires satisfying the debt.

Instructions

1

Review notices sent to you about the garnishment from a civil court, your state department of revenue or the Internal Revenue Service. Note the amount due for the judgment or for unpaid taxes.

2

Contact the debt collector if the garnishment is for an unpaid debt. Find a contact number on the court garnishment order, or ask the bank for a contact for the garnishment. Make arrangements to pay the amount due in full, or negotiate a settlement or payment plan in exchange for a lifting of the garnishment order. Make similar arrangements with state or federal tax officials if the garnishment is for unpaid taxes. Obtain an agreement in writing, including details and a date for ending the garnishment.

3

Contact your bank to confirm an end to the garnishment. Close the bank account if you still wish to do so. Close the account online or in person at a branch.