Can Creditors Garnish Your Wages From Joint Accounts?

If you have a debt and you don't pay it, your creditor can pursue payment through various means. The creditor may take the case to the court and get a judgment against you. With this judgment, the creditor can get a portion of your wages from your bank account, even if you hold the account jointly with another person.

Garnishment

Your creditor can only garnish your wages with a court order if you receive regular wages and earn an income above the poverty line. During the potentially lengthy legal process, you get an advance notice that the creditor garnishes your wages from your bank account. Your employer also learns of the garnishment. The creditor can take up to 25 percent of your disposable income or up to 50 percent of your disposable income if the creditor takes the money for child or spousal support.

Ownership

As long as you retain at least some of the ownership to a bank account, the creditor can garnish the wages in the account. As such, the creditor can legally garnish the money in a joint account, even if some of the money belongs to another person. You may be able to obtain an exemption if the money is not yours, but the creditor has the right to take the money that comes from your wages.

Contesting the Garnishment

Depending on the case, you may be able to get the creditor to stop garnishing your wages by vacating the judgment. To do this, you have to first determine the reason for the garnishment. Consult the attorney representing your creditor and get as much information about the case as possible. In particular, find out the court, the index number and the name of the creditor. If the creditor garnishes not only your wages but also exempt funds, such as Social Security benefits, you can get a release of the account.

Separate Accounts

If the creditor only garnishes your wages, you can't stop him from doing so. He can continue to do so until you pay off your debt. However, if you don't separate your funds, the creditor may take more than your wages. The creditor may take the other joint account holder's money, for example. To prevent this, stop depositing money from other sources into the joint account. Advise the other joint account holder to open another bank account to replace the joint account.