Bank Accounts and Bankruptcy Garnishment Reversal
When a bank receives a court order from a creditor holding a judgment against one of their banking clients, the money being seized could fall into an “exempt” status, in which case, the debtor could file a garnishment challenge form. As an example of this, if the situation is such that the creditor making a levy on the bankruptcy is attempting to seize funds in the debtor’s bank which were payments from unemployment, this money would be 100% protected and exempt. The only way to be sure, however, that you’re protected is to call a licensed bankruptcy attorney. For example, if someone living in a DFW were to face such risks, consulting a dallas bankruptcy lawyer would provide valuable guidance and legal advice.
Quality legal representation offered by a bankruptcy attorney dallas tx can help you determine that by virtue of filing this form for challenge of the creditor’s bank garnishment, declaring this money to be unemployment funds will allow the person to get a declaration from the court that funds must be returned and released from frozen status as they cannot be levied and garnished. A Garnishment challenge form can be very valuable in this situation.
If you have been garnished, contact an attorney or obtain a copy of the garnishment challenge form as provided on the court website or from your attorney. Doing this could allow you to receive exemption from all or a part of the money in the account. There are unfortunate situations as well in which a debtor has a homestead that is paid off or has significant equity.
If the homeowner has more than $10,000 worth of equity in their home in Texas, they could not exempt any portion of the money in the account unless it is social security income, unemployment income, money from the military, etc. These are all exempt simply by nature of the type and source of the money in the bank account. The bank’s legal department should look at these things closely, but you cannot rely on them to be looking out for your best interests. Simply speak with your attorney for help.