can a debt collector take money out of my checking account?

Oct 22, 2010

Can a debt collector take money out of checking account
by: Mary

Thanks for submitting your debt collection question on our Q&A page.

A debt collector with a judgment against you is entitled to collect the amount of that judgment in various ways -- by garnishing your wages, taking one or more of your nonexempt assets (assets that are not protected from the collection actions of a creditor or debt collector), putting a lien on a nonexempt asset you may own, and by taking money out of your bank account.

If a debt collector is about to begin taking money from your bank account, a certain percentage of the wages you earn will be exempt or safe from the garnishment. The percentage varies by state. To find out what it is in New Jersey, contact a consumer law attorney in your area with experience helping consumers resolve debt collection problems or call your State Attorney General's office. Also, certain other types of funds are also exempt, like Social Security payments, Veteran's benefits and other government benefits, child support, alimony, money from a pension or other retirement benefits, and so on. However, it's always best to keep all exempt funds in an account that is separate from the money the debt collector is entitled to take.

Again, if you have any questions about the debt collector and your bank account, contact a consumer law attorney in your area.

Please share what happens with your situation in the comments section for this question. We are very interested in hearing how this turns out for you, and your experience can help others who are struggling with debt collectors.

can a debt collector take money out of my checking account?

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can a debt collector take money out of my checking account?