Can They Garnish a Bank Account If a Lawsuit Was in a Different State?

If you've had a court declare a judgment against you, resulting in monetary damages or fees, it doesn't matter if the lawsuit was filed in a state in which you don't reside. If you were given notice of the pending lawsuit, but you failed to respond, that means the person suing you won by default. Once the person suing you has won, your bank account can be garnished for the amount owed.

Procedure

For a plaintiff to sue you, he must file a suit in a court that has proper jurisdiction. Courts typically only have jurisdiction over defendants if the plaintiff can prove the defendant lives or works in the same state where the lawsuit is filed. Additionally, courts have jurisdiction over defendants who own property in a state, even if they don't live on the property. The important thing to note, however, is if a defendant doesn't live in-state, but he was served with notice of a lawsuit while he was visiting the state, the state can claim jurisdiction over him.

Garnishment

Garnishment can occur when a plaintiff, or creditor, wins a judgment against a debtor. Many states do not allow credit card companies to garnish a debtor's bank account or wages. However, if a debtor owes back-taxes or child support, it doesn't matter where the debtor lives or where the garnishment order was issued. Individuals who owe child support or back taxes can have their bank accounts garnished, no matter where they live.

Defenses

Defendants who have had courts issue out-of-state judgments against them can assert the defense that the court did not have jurisdiction, particularly if the defendant doesn't work, live, or own land in the state where the judgment was issued. However, if no defenses are asserted, and the plaintiff wins the lawsuit by default, the plaintiff can get an order to garnish a bank account to satisfy the judgment.

Additional Considerations

Guidelines regarding court jurisdiction exist because defendants must be allowed the opportunity to defend themselves. Without these rules, any court, at any time, could issue a ruling or a judgment against a defendant, which would result in unfairness. If you believe an out-of-state court is improperly asserting jurisdiction over you, you must immediately contact the court to argue that it doesn't have jurisdiction. However, if you've already lost a lawsuit, resulting in monetary damages, your bank account can legally be garnished.