Unfortunately, the first time many consumers find out about a debt, valid or otherwise, is when a debt collector freezes or garnishes funds in their bank account. Certain funds are exempt regardless of whether a debt is owed. Some examples are social security funds, unemployment funds, some pensions, and the first $4,000 of anyone’s account, under what is called a “wildcard exemption.” The purpose of these exemptions is to ensure consumers can keep the basic necessities of life.
Debtors Legal Clinic can provide information for consumers on how to protect this income and how to notify collectors that these funds are unavailable. Contact us for assistance with protecting the funds in your bank account.