Can Creditors Take Money From My Account After I Write a Check?

Creditors cannot continue to take money from your account after you write a check---unless you authorize it or they receive permission from a civil court to garnish your bank account. Debt collectors often use account information from a personal check to identify a debtor's bank account. That gives them the information they need to pull money from the account after a judge signs garnishment orders. However, many steps are necessary before that happens.

Process

Months or even years can pass before a delinquent debt reaches the status of a garnishment order. Credit card companies usually close accounts and list them as charged-off after payments fall six months behind. Stepped-up collection efforts begin from there, with the account sold or assigned to a debt collection agency. If the first agency cannot collect, the account may move to other agencies over several months. At some point an agency may file a lawsuit, leading to a monetary judgment signed by a judge. The judgment requires the debtor to pay a specific amount, with garnishment possible if the debtor does not do so.

Garnishment

Garnishment gives the debt collector the right to withdraw money from the debtor's checking account. However, it is up to the debt collector to find the debtor's banking information. The easiest way for that is to review personal checks the debtor previously submitted for payment. Garnishment can begin once the debt collector has the banking information and a court order.

Notice

Banks must agree with a court-issued garnishment order, and they are not required to notify the account holder. Garnishment freezes the account, with the account holder allowed only to make deposits. Checks written on the account will bounce and the banking system will block the debtor's ATM card for payment transactions. The garnishment usually remains in place until the debt collector receives full payment for the judgment.

Solutions

Negotiating directly with the debt collector is one way of removing the garnishment. The debt collector may release the garnishment order in exchange for regular monthly payments from the account by electronic transfer. Some debtors choose to simply stop using the checking account and have their paycheck electronically deposited onto a prepaid debit card.

Bankruptcy

Bankruptcy immediately stops garnishment through a court order called "the automatic stay." However, bankruptcy is an extreme debt management strategy and is best reserved as a last resort. The debtor must include all debts in bankruptcy---and not just the debt resulting in garnishment. Bankruptcy information remains on credit reports for 10 years.