If You Open a Checking Account With Someone Else's Name on It, Can It Still Be Garnished for You?

Bank garnishment is a process a creditor may use to recover unpaid debts you owe. This process involves freezing the bank account, which means that you can deposit money, but you cannot make withdrawals. The frozen funds may then be sent to the court to reduce the debt you owe. In certain cases, a debtor may garnish your bank account, even if someone else's name is on the account.

Judgment

Before a debtor can garnish a bank account, it must obtain a judgment against you. A judgment stems from a civil suit that is typically filed with a court in the county in which you reside. You will receive notice that a debtor has filed a suit against you, and you will typically have an opportunity to challenge the judgment. If you do not answer or cannot successfully challenge the lawsuit, the court will typically grant a judgment against you.

Joint Accounts

If you open a joint account with another person, and your name appears as an account holder, a judgment debtor can typically apply to the court to freeze the account and garnish the available funds. The other holder of the account typically does not have to provide permission for the debtor to freeze the account. However, laws regarding the ability of a judgment debtor to garnish joint funds varies by state.

Exceptions

Although a judgment debtor can freeze a joint bank account you own with another person, it typically cannot garnish funds that solely belong to the other account holder. The other account holder must provide proof to the court that he owns part of the funds in the account, and that you do not have permission to use the funds. If the other party can provide proof, the funds are typically considered exempt, and they may not be used to pay your judgment.

Considerations

Some states, such as Ohio, impose an exemption on a certain amount of funds in the account, regardless of which account owner controls the funds. In Ohio, the first $400 in your account is exempt from garnishment.

Fraud

You may be tempted to open a bank account in someone else's name in order to keep funds from a judgment debtor. Some banks allow customers to open accounts online without ever visiting a bank branch. However, this is considered fraud unless you have legal guardianship of the person whose name appears on the account. Using someone else's identity to open a bank account may result in fines and up to 15 years of imprisonment.