Can They Do Both a Garnishment and an Attachment?

Folks who get behind on their bills have it tough -- especially those with outstanding debts and aggressive collectors trying to get every penny they're owed. Although not all debtors with delinquent obligations will face legal trouble, some collectors will seek a court judgment that can serve as the basis of a garnishment or levy. They can even pursue garnishments and levies at the same time.

Garnishments

When a creditor seizes a part of a debtor's paycheck directly from his employer, a practice called "garnishment," the debtor's obligations are paid before the debtor even receives his check. The rules surrounding garnishments vary substantially across states, but in general, a garnishment order runs for a specific amount of time, the employer is obligated to honor it and there is a cap on the percentage of funds that may be withheld from each check.

Levies

A creditor can ask the local sheriff to seize assets to satisfy a debt. This practice is called a "levy" and is most often performed against the balance of checking and savings accounts. To effect a levy, the creditor submits paperwork to the sheriff, who then approaches various banks and credit unions to seize any liquid assets the debtor owns. The funds protected from garnishment are also protected by levy, but the burden falls on the debtor to prove that levied funds were, in fact, exempt -- usually after his accounts have been raided.

Although real property, like vehicles, can be repossessed or seized during a levy, a practice sometimes called "attachment," it's more common for a debtor to file a lien against the property and wait to be repaid upon the sale of the asset.

Debt Judgments

Before a creditor can obtain a garnishment or a levy, the creditor must obtain an order of judgment from a local court. This is usually done by lawsuit -- a creditor files a civil claim, the debtor-defendant replies and the judge sorts the whole thing out. If the judge finds in favor of the creditor he will issue an order of judgment. This makes the debt legally binding on the defendant and empowers the creditor to seek garnishments and levies through the local sheriff's office.

Nothing prohibits a creditor from attempting both a garnishment and a levy simultaneously. The creditor could even place a lien against real property, like a car or home, guaranteeing payment of the debt before the property title can transfer to a new owner.

Exceptions

Two major exceptions to the normal process can trip up debtors. First, any delinquent student loan debt guaranteed by the U.S. Department of Education doesn't require a court hearing -- the department can simply issue an "administrative wage garnishment" order to an employer.

Second, certain kinds of income are exempt from garnishment or levy, including child support and pensions. The procedures for protected income can get complex depending on the laws of the state possessing jurisdiction. In general, though, people who earn protected income must keep it segregated from other income to avoid losing their access to the funds.