garnishment on account is one of the most frequent and pressing forms of enforcement proceedings. Many people only discover that enforcement has started when their bank freezes funds, part of their salary is withheld or they can no longer use money needed for everyday expenses.
If your bank account has been garnished, the first important thing is not to delay the verification of enforcement. In many cases, the deadline for a challenge to enforcement is short, and exceeding the deadline may make it much more difficult to annul unlawful acts.
This article explains, in short and practical, what it means to be posted on the account, when it can be contested, what limits are there for the revenue to be posted and what documents must be analysed before deciding on the next steps.
What's the garnishment on your account?
Garnishment is an enforcement measure under which money owed to the debtor is frozen and may subsequently be transferred to the creditor. Usually, the garnishment may concern bank accounts, salaries, pensions, periodic income or other amounts that the debtor has to collect from a third person.
The procedure generally involves three parties: the creditor, the debtor and the garnishee. The creditor shall be the person or institution requesting enforcement. The debtor is the person against whom enforcement is pursued. The garnishee may be a bank, employer, pension authority or another entity holding or owing money to the debtor.
Why might garnishment be imposed?
Garnishment may be imposed when there is an enforceable instrument and enforcement proceedings have been opened. An enforceable instrument may be a judgment, credit agreement, lease, promissory note, notarial deed or another document to which the law grants enforceability.
The most common situations are:
• unpaid instalments owed to a bank or non-bank financial institution;
• debts assigned to debt recovery companies;
• fines, charges or tax obligations;
• amounts determined by judicial decisions;
• debits arising from commercial or civil contracts;
• costs or other obligations determined by way of an enforceable order.
What do you need to check right away if you have a garnishment on your account?
If you discover a garnishment, it's important to get the papers from the enforcement file as soon as possible. It's not enough just to check the amount stuck in the account. The entire course of enforcement must be examined.
Typically, it has to be verified:
• who is the creditor who requested enforcement;
• which is the bailiff;
• what is the enforceable title invoked;
• when enforcement proceedings began;
• whether you have received an order or other enforcement acts;
• how much is required and how it has been calculated;
• whether there are disproportionate interest, penalties or enforcement costs;
• whether the debt is time-barred;
• if the legal limits of the attachment have been respected.
What limits apply to garnishment of salary or other income?
In the case of wages and other periodic income intended to ensure livelihood, the law sets limits for pursuit. In principle, up to one third of net monthly income may be attached for a single debt; where there are several attachments, the total generally cannot exceed half of net monthly income.
These limits are important because, in practice, situations may arise where the bank, employer or executor apply the garnishment in a way that disproportionately affects the debtor's income. Also, certain amounts may have special arrangements and need to be examined whether or not they can be pursued.
If it affects all of your income needed to live or if amounts are retained beyond legal limits, it is recommended that you immediately request the verification of the documents and how the measure was applied.
When can the attachment be contested on account?
Garnishment may be challenged through a challenge to enforcement where there are grounds of unlawfulness affecting enforcement, individual measures or calculation of the sums claimed.
Examples of grounds that may justify a challenge to enforcement:
• the debt is time-barred;
• you have not received the enforcement measures;
• the amount being enforced is incorrectly calculated;
• unjustified interest or penalties shall be pursued;
• the enforceable title may not be put into effect in the form invoked;
• enforcement was initiated by a bailiff who lacked jurisdiction;
• the attachment exceeds the legal limits;
• funds exempt from attachment are being pursued;
• the implementation costs are disproportionate;
• the enforcement measures contain errors or procedural shortcomings.
What is the deadline for the challenge to enforcement?
In most cases, the challenge to enforcement shall be lodged within 15 days. The deadline may run from service of the enforcement measure, from when you learned of the challenged measure or, for garnishment of recurring income, from the first deduction.
The calculation of the deadline is one of the most important checks. If the time limit is exceeded, the court may reject the appeal as late, even if there are real problems in the enforcement file. That's why the paperwork needs to be analyzed quickly, as soon as you know about the garnishment.
Can garnishment be stayed?
Yes, under certain conditions the suspension of enforcement proceedings may be requested. The suspension shall be the measure by which the court may temporarily stop the enforcement until the appeal or other enforcement request has been resolved.
The suspension shall not be obtained automatically. It must be justified on good grounds and, in many cases, may involve the payment of a security. The court will consider whether the enforcement is causing material damage and whether there are serious arguments as to the illegality of the proceeding.
In practice, the suspension may be essential when garnishment blocks the income needed for living, affects the activity of a firm or produces consequences that are difficult to repair until the process is completed.
What documents are useful for reviewing garnishment?
For an initial analysis, the following documents are useful:
• the garnishment notice;
• the demand for payment;
• the order authorising enforcement;
• the enforceable title;
• the order determining enforcement costs;
• the statement of account or proof of the amounts blocked;
• documents received from the bank or employer;
• correspondence with the bailiff;
• the contract or document from which the debt originates;
• any evidence of partial or full payment.
What can a lawyer do in a garnishment case?
A lawyer can review the legality of enforcement, deadlines, the bailiff’s jurisdiction, limitation issues, the calculation of the debt, enforcement costs and compliance with garnishment limits.
Depending on the case, the lawyer can draft a challenge to enforcement, an application for a stay, a request to the bailiff, submissions to the court or a notice to the creditor. The aim is not only to formulate an application, but to build a procedural strategy adapted to concrete acts and risks.
Frequently asked questions about garnishment on account
May I challenge the garnishment if I have not received any notice?
Yes, failure to serve documents may be relevant, but the enforcement file and the date on which you learned of the garnishment must be examined. The time limit may begin differently depending on the specific situation.
Can the bank block all the money from the account?
It depends on the nature of the amounts and the limits laid down in the law. Limits apply to attachments of wages and other recurring income, but their application must be checked in the individual case.
Can I ask for garnishment to be lifted?
Yes, in certain situations you may request lifting of garnishment, annulment of enforcement measures or a stay of enforcement. The solution depends on the grounds of illegality and existing acts.
What do I do if the 15-day deadline is over?
Even if the time limit for certain acts has passed, there may be issues which can be invoked separately depending on the subject matter of the appeal and the type of irregularity. A point-to-point analysis of the enforcement file is required.
Conclusion
Bank account garnishment should not be treated as a mere banking issue. It is usually part of enforcement proceedings that require legal review. Errors, unjustified amounts, expiry of a limitation period, failure to serve documents or deductions exceeding statutory limits may provide grounds for a challenge and, where appropriate, an application for a stay.
If you have received enforcement documents or found out that you have a garnishment on your account, it is recommended that you quickly request an analysis of the documents. The time limits are short and a timely intervention can significantly change the progress of the file.
Do you have a garnishment on your account or did you get enforcement proceedings papers? Send the documents for a legal analysis and find out if you can challenge the enforcement or request to suspend enforcement proceedings.
