Can My Wife's Bank Account Be Garnished for My Debt?

April 25, 2024

Can My Wife’s Bank Account Be Garnished for My Debt?

If you and your wife reside in a community property state, then there is a legitimate risk that a creditor will garnish wages from a joint bank account to pay a debt that only you owe. In general, your spouse’s wages cannot be garnished for a debt you owe if they have a separate checking account held solely in their name. You can prevent wage garnishment by fighting off debt collectors in court with ZumaZip.

If a creditor files a debt collection lawsuit and obtains a judgment against you, the creditor may attempt to retrieve repayment for the outstanding debt by garnishing your wages and/or seizing funds in your checking account. A common question asked by individuals who find themselves in this situation is: “Can a creditor access my wife’s bank account to retrieve funds to pay for my debt?” The answer is… it depends.

The ability to garnish an account depends on multiple factors

The ability of a creditor, or debt collector, to garnish your spouse’s bank account depends on multiple factors, including the type of account your spouse uses, the nature of the debt, and the state in which you and your spouse reside.

As a general rule, if your spouse has a separate checking account held solely in their name, then a creditor who obtains a judgment against you cannot get a garnishment order to access your spouse’s account. However, the answer is different if you and your spouse have funds in a joint checking account.

If you have a joint checking account with your spouse, the ability of a creditor to access that account to satisfy a debt collection judgment depends primarily on whether you and your spouse reside in a common law state or community property state. Let’s take a look at each.

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Community property states allow wage garnishment of joint bank accounts

If you and your wife reside in a community property state, then there is a legitimate risk that a creditor will be able to access a joint bank account to garnish funds to pay a debt only you owe. This is because community property states have laws on the books that treat the property of one spouse in a marriage as the property of the other spouse.

For example, Texas Family Code Sec. 3.202(c)(d) states:

“(c) The community property subject to a spouse’s sole or joint management, control, and disposition is subject to the liabilities incurred by the spouse before or during marriage.
(d) All community property is subject to tortious liability of either spouse incurred during marriage.”

In other words, any property that was accumulated during a marriage may be subject to wage garnishment or other liabilities as a result of only one of the spouse’s debts.

Fortunately, most states do not adhere to community property laws. There are currently only nine community property states in America:

Arizona
California
Idaho
Louisiana
Nevada
New Mexico
Texas
Washington

Let’s consider an example.

Example: Jeff and Suzie live in Arizona, and when Jeff gets sued by LVNV Funding for a debt he owes, he fails to respond before the state deadline. As a result, the court orders a default judgment against him. LVNV Funding is able to access Jeff and Suzie’s join bank account and garnish their wages, including Suzie’s hard-earned cash. This all could have been avoided if Jeff had used ZumaZip to respond to the lawsuit and fight back in court.

Protect your wife’s assets from a garnishment

If you reside in a community property state, there are steps you can take to protect your wife and her funds from a garnishment effort sought by your creditors. Specifically, you should maintain separate, independent bank accounts instead of having all your funds in a joint bank account.

Though, it is important to note simply maintaining funds in separate accounts is not a foolproof method to protect your wife’s funds. This is because, in many community property states, there are laws on the books that enable a creditor to enforce a judgment by accessing a spouse’s bank account since the debt was incurred when you were married and, as a result, the funds in your wife’s account are deemed “community debts.”

Respond to debt collectors in 15 minutes with ZumaZip.

Common law property states may protect your spouse from wage garnishment

In contrast to community property states, individuals who reside in common law property states enjoy greater protections from creditor garnishments for funds maintained in a joint bank account. In a common law property state, the general rule is that the debt of each spouse remains their separate responsibility.

However, this general rule is subject to two important exceptions. First, if the debt benefited both spouses, then it may be possible for the creditor to garnish funds maintained in a joint account. Second, if both spouses took out the debt jointly and a judgment was subsequently obtained by a creditor, it exposes the joint account to garnishment.

There are specific funds protected from wage garnishment

It is important to note that even if a creditor secures a garnishment order and has frozen your joint bank account, some funds are protected and cannot be garnished. For example, any funds deposited into the account that are federal benefits (e.g., Social Security disability benefits, Supplemental Security Income, or federal retirement benefits) cannot be garnished by a creditor.

As a general rule, if your wife has a separate bank account held solely in their name, then a creditor cannot access that account to garnish funds to pay for your debt. However, if you and your wife have a joint bank account, there is a risk that a creditor could garnish funds in the joint account, even if a judgment is only entered against you.

Nevertheless, the ability of a creditor to garnish a joint bank account will be impacted by the state in which you reside and the funds maintained in that account.

Avoid wage garnishment

If you’ve been sued for a debt, don’t ignore the lawsuit. You can avoid losing and having your wages garnished by simply responding to the case in court. In order to respond to a debt lawsuit, you must draft and file a written Answer into your case.

Be sure to file your Answer before your state’s deadline, otherwise you run the risk of losing automatically when the court orders a default judgment against you. This type of judgment can lead to wage garnishment and other penalties, so it’s important you take action as soon as you receive notice of the lawsuit.

ZumaZip’s Answer form helps you respond to all the claims against you and present your affirmative defenses, giving you a strong case to fight back against debt collectors in court.

What is ZumaZip?

ZumaZip is a convenient solution designed to streamline your response to a debt collection lawsuit. Here’s a breakdown of what you can expect when you use ZumaZip:

Firstly, you’ll access our user-friendly web application, which guides you through the process step by step. You’ll be prompted to answer a series of questions related to your specific situation. Once you’ve completed the questionnaire, you have the option to either print out the finalized forms and mail them to the appropriate courts yourself, or you can opt to utilize ZumaZip’s services to file them on your behalf. Additionally, if you choose this option, an attorney will review your document for added peace of mind.

If you’re seeking guidance on how to effectively respond to a debt collection lawsuit, ZumaZip can provide the assistance you need. Feel free to explore our FAQs for more information on what ZumaZip has to offer.

What if I haven’t been sued yet?

If you’ve only received a collections notice, but not a lawsuit, the best way to respond is with a Debt Validation Letter. When a debt collector contacts you in any way, whether it’s by phone or mail, you can respond by formally requesting a debt validation with a Debt Validation Letter . This letter notifies the collector that you dispute the debt and forces them to provide proof you owe the debt. They can’t call you or continue collecting until they provide validation of the debt. This flowchart shows how you can use a Debt Validation Letter to win.

Get started with a Debt Validation Letter here.

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