Can a Creditor Garnish a Joint Bank Account?

One of the harshest, yet most effective, ways in which a creditor can obtain the repayment of a debt is by garnishing funds from the bank account of an individual who owes it money. This is done by suing the debtor in court and winning. If a debtor refuses to pay the damages awarded the creditor, the creditor can petition the judge to seize the damages from the debtor's bank account. Joint bank accounts can be garnished, but only funds of the person who owes the money.

Debt Collection

When a creditor is seeking payment of money from a legally certified debt, he has a number of options, depending on the state in which the debt is owed. Some states allow private creditors to garnish the wages of an individual or to seize money directly from the individual's bank account. In all cases, however, the creditor has to obtain the explicit permission of a judge to freeze someone's account.

Bank Account Seizure

To seize a bank account, the creditor must receive permission from the judge, who will issue an order of seizure. This order will be presented to the bank with which the debtor holds an account. The bank must comply with the order. However, the judge can only legally order an account to be frozen if it can be shown that the person named in the civil suit controls the account.

Joint Accounts

A judge can grant the seizure of a joint bank account if the debtor is one of the parties who holds it. However, this does not mean the creditor can seize money controlled by the other party who holds the account if that party is not named in the debt lawsuit. Rather, this money is exempt from seizure, provided the party can show the money is his and not the debtor's.

Considerations

When and how money can be taken from a joint bank account depends in large part on state law. It also depends on the person with whom the debtor holds the bank account. For example, in a community-property state, a creditor may be able to seize all the funds held in an account controlled by a debtor and his wife. However, other states may forbid this.