How to Stop Bank Garnishment

If you have an unpaid debt with a creditor, that creditor may garnish your bank account. If a creditor files a lawsuit against you and wins the case, then the creditor can freeze your bank account and seize the funds to cover the past due balance you owe. So, it is best to avoid a bank garnishment, if at all possible. Fortunately, there is a way to prevent a creditor from freezing your bank account. Learn how to properly stop a bank garnishment.

Instructions

1

Contact your creditor about your payment options. Try to negotiate a settlement offer or monthly payment plan with your creditor. Your creditor may allow you to settle your unpaid debt for a fraction of what you owe. Make sure you accept an offer that is affordable for your budget.

2

Request a confirmation letter. Ask your creditor to send you a formal letter describing the settlement offer or payment plan. The letter should state your current balance, your payment due dates and the terms of the agreement.

3

Make your scheduled payments in a timely manner. It is important to follow the payment schedule and submit your payments by the appropriate due dates. If you fail to make your payments on time, your creditor may proceed with a lawsuit and garnish your bank account.

4

Submit your final payment to your creditor. Once your balance is paid in full, you no longer have to worry about a bank garnishment. However, you should ask your creditor to send you a letter confirming that your account is paid in full and that you have a zero balance.

5

Check your credit report for updates. Your creditor should report your account status to the credit bureaus as paid in full. Give your creditor at least 30 days before you check your credit report. You can order a free copy of your credit report from Experian, TransUnion and Equifax, by visiting AnnualCreditReport.com.