Often, people who are without jobs will find themselves in debt. Although you may receive an unemployment check, this may not be adequate if you're seeking to cover your expenses. A person who defaults on a debt risks having a civil judgment issued against him by a court, resulting in garnishment of his bank account. In such a case, he can probably still receive his unemployment check, although not by direct deposit.
Unemployment Benefits
When your qualify for unemployment insurance, states send the payments weekly or bi-weekly. The exact payment will depend on earnings while employed. This money can be delivered in several ways, including through the mail and by direct deposit into a checking account.
Bank Account Seizure
If a civil judgment is issued, the creditor may next request that a judge allow him to seize money from the debtor's bank account. If the judge grants this motion, the creditor will be allowed to put a freeze on the debtor's checking account. When this happens, the debtor will not be able to access the account and will not be able to withdraw money from it.
Payment of Benefits
If when the freeze is instituted, the debtor is receiving his allotment of unemployment benefits through direct deposit into his account, these payments will continue uninterrupted. However, you probably won't be able to access them until the freeze on the account has been lifted. However, you can likely request that the unemployment agency mail the checks rather than directly deposit them. You can cash these checks and avoid garnishment.
Considerations
In addition to having a bank account seized, a debtor may also have unemployment benefits garnished. While a private credit, such as a credit-card company, is not allowed to garnish government benefits, a government agency often can. So, if you owe taxes or child support payments, you may find one day that your unemployment benefits are also being garnished.
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