- A writ of garnishment or a writ of execution is a legal document obtained by court order that entitles a creditor to garnish your wages or bank account. When the writ of garnishment is issued, the creditor employs the sheriff's department or a private servicing agency to serve the writ of garnishment on your employer or bank.
- The Garnishment of Accounts Containing Federal Benefit Payments law protects consumers from having a writ of garnishment or writ of execution issued to garnish unemployment benefits. In addition, Social Security, Supplementary Security Income, Veteran's Benefits, Aid for Families with Dependent Children -- welfare -- and workers' compensation are also exempted from garnishment. In other words, a credit card company cannot garnish your unemployment benefits.
- Although unemployment benefits are protected from a writ of garnishment, your bank account is not unless you protect your bank account. In order to legally protect your bank account, you must deposit your unemployment benefits into an account used exclusively for depositing your benefits. Federal law requires your bank to determine if the funds in your bank are unemployment benefits; if the bank determines that the funds are unemployment benefits then the bank will not freeze your account or garnish the funds.
- Although your bank must check that the funds in your account are protected, mistakes do happen. Keep a record of your deposits and withdrawals so that if a creditor garnishes the account in error, you'll be able to ask the court for your money to be returned. In addition, don't keep more than 60 days worth of benefits in your account -- if you do, any additional funds over the 60 days worth of benefits could be subject to the writ of garnishment.
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