Skip to content

Menu

HomeAboutServicesContactResources
By: Samuel J. Turco Jr.

Nebraska Debt & Bankruptcy Blog

Published by
Samuel J. Turco Jr.

May Creditors Garnish a Paycheck AND a Bank Account at the Same Time?

Stop
close-up of a woman holding her palm out
By Sam Turco on January 26, 2014
Posted in Bank Account, Exemption, Garnishment

A grandmother recently wrote me about her granddaughter in North Platte, Nebraska struggling to pay back medical debts.  Her creditors were garnishing 25% of her paychecks but they also garnished her bank account as well leaving her with no funds pay rent, utilities or even food.  Can creditors do this?  May a creditor garnish the paycheck and all the bank account funds at the same time?

Yes, a creditor may garnish paychecks and bank accounts at the same time unless you assert your exemption rights.  Exemption laws protect your basic property, but in Nebraska you must file a request for an Exemption Hearing with the court to protect your property from creditor garnishments.

Here is what you need to do to stop a bank garnishment.

  1. Request a Court Hearing.  A written request for a garnishment hearing must be filed with the Clerk of the Court with in 3 days after receiving notice of the garnishment.  Yep, you read that right—you have only 3 days to request a garnishment hearing after receiving a notice of the garnishment.  Request for Garnishment Hearing
  2. File an Inventory:  Only so much property is protected by Nebraska exemption laws, so the Court requires an inventory of your property to determine how much property is exempt.  In most cases all of a judgment debtor’s property is exempt.  Here is an Inventory Form.
  3. List all Liens Against Property:  If you own a home or a car or furniture that is subject to a bank lien, list the amount of the lien.
  4. Claim the Exemption Law:  Nebraska has about a dozen exemption laws, mostly contained in Chapter 25 of the Nebraska Statutes.  Cite the exemption law that protects each property item.   Nebraska Statute 25-1552 protects up to $2,500 of money in a bank account.  Married debtors with a joint account may protect up to $5,000.
  5. Attend the Court Hearing:  You don’t have to say much in court, just ask the judge to look at the inventory you filed and the exemption laws cited.

I would estimate that more than 95% of the bank account garnishments that occur in Nebraska could be avoided by following this outline.

Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Photo of Sam Turco Sam Turco

I was born and raised in Omaha, Nebraska, the 3rd of six children.  We grew up in the meat packing district of South Omaha.  I graduated from Omaha Central High School 1985.

 My wife, Kathy, and I are raising 3 children.   Outside of…

I was born and raised in Omaha, Nebraska, the 3rd of six children.  We grew up in the meat packing district of South Omaha.  I graduated from Omaha Central High School 1985.

 My wife, Kathy, and I are raising 3 children.   Outside of work, I spend a lot of time escorting children to sporting events while trying to sneak in a long bicycle ride on the weekends.

Areas of Practice
  • 100% Bankruptcy Law
Litigation Percentage
  • 5% of Practice Devoted to Litigation
Bar Admissions
  • Nebraska, 1992
  • Iowa
  • U.S. District Court District of Nebraska, 2010
  • U.S. Tax Court
Read more about Sam TurcoSam's Linkedin ProfileSam's Twitter ProfileSam's Facebook Profile
Show more Show less
Related Posts
2036022196_ce7290477e_b
Can a Creditor Sue Me If I Am Making Payments?
December 31, 2015
17159928321_d12f62260d_k
Health Savings Accounts & Bankruptcy
February 26, 2016
3449792777_913f6ee309_b
How Much Can The IRS Garnish?
November 7, 2015

About Us

Samuel Turco is a native Nebraskan whose wealth of knowledge and experience in bankruptcy law, along with a rich understanding of the issues faced by those in all corners of the state, has been instrumental in building a bankruptcy law practice adept in always seeing things from the client’s perspective.

Read More....

Stay Connected

Subscribe via RSS Subscribe via RSS

Topics

Archives

Recent Posts

  • How to Fill Out the Lawsuit Answer Form
  • Make them Produce Documents
  • Interrogatories: Make Them Answer Questions
  • Discovery: What you do after responding to a lawsuit.
  • Are Zillow Home Values Accurate?
Main Office
3006 South 87th Street
Omaha, NE 68124
Phone: (402) 939-6050
Fax: (402) 939-0960
Branch Office
5000 Central Park Drive, Suite 204
Lincoln, NE 68124
Phone: (402) 939-6050
Fax: (402) 939-0960
Subscribe via RSS Subscribe via RSS
Privacy PolicyDisclaimerResources
Copyright © 2023, Sam Turco Law Offices. All Rights Reserved.
Law blog design & platform by LexBlog LexBlog Logo