Money That Cannot Be Taken From You
(“Garnished”) to Pay Off a Debt
Introduction
•
The law protects certain types of income
and property from garnishment by
creditors. These funds cannot be taken
from you to pay off a debt, even one a court
has said you owe. We call these funds
“exempt.”
 DO NOT PUT ANY MONEY IN
A BANK ACCOUNT if you can
help it. Even though $500 in
a bank account is exempt
from garnishment if you
have less than $1,500 in
cash, the bank may freeze
your account anyway if the
creditor claims you actually
have more than $1,500 total.
This can result in bounced
checks, overdraft fees, and
other bank charges.
There are a few exceptions to these
exemptions for child support, federal
student loans, and some other debts to the
federal government.
What income is exempt?
 These are general
exemptions. Every case is
different. See a lawyer for
advice about your specific
situation.
 Most pensions are exempt
from garnishment even after
they are sent to you. But
some are not. Do not have
pension checks direct
deposited into a bank
account, if possible. See if
the pension fund can mail
pension checks directly to
your home.
The following types of income or money
cannot be taken from you to pay off a debt:
•
Social Security disability and
retirement benefits (unless you owe
child support or, federal student
loans, or a federal tax debt)
•
SSI benefits
•
TANF benefits (state welfare)
•
ABD benefits (state disability)
•
Unemployment Compensation
(unless you owe child support)
•
VA benefits (with some exceptions
for money you owe the government
or for support)
•
Student Loans
•
Child Support you receive
$500 in your Bank Account and
$1000 Additional Cash, for a total
exemption of up to $1500
 IF A CREDITOR TRIES TO
TAKE MONEY FROM YOUR
BANK ACCOUNT, CALL
CLEAR AT 1-888-201-1014
FOR HELP. Also, read the
publication “How to Claim
Personal Property
Exemptions,” available
at www.washingtonlawhelp.
org
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•
Should I keep my money in an
account at a bank I owe money to?
Wages - If you make less than the
following amounts, none of your
wages can be garnished:
No. That bank can take money from your
bank account to get the money you owe to
them.
o $253.75 weekly
Examples: Do not have a bank account at a
bank where you have one of the bank’s
credit cards, or where you owe on a loan.
o $507.50 every 2 weeks
o $550.00 twice a month
o $1099.33 monthly
My creditor has sued me over a debt
I owe. What should I do?
o Even if you take home more
than these amounts, you
may still keep 75% of your
TAKE HOME PAY. (Example:
You earn $400 per week
after taxes. This is more than
$253.75. Multiply your take
home pay by 75% ($400 x .75
= $300). The law allows you
to keep $300. A creditor can
take $100 of that check.)
If you get sued on a debt, talk with a lawyer
right away.
 Do not ignore court papers!
Even if your income and assets are exempt
from garnishment, you should still fill out a
Declaration Regarding Income and Assets
Exempt from Garnishment form to file with
the court. It will show that your income and
assets cannot be taken by the creditor. Our
publication called How to Answer a Lawsuit
for Debt Collection has forms and more
information.
 If possible, do not get your
pay check by direct deposit.
Wages are exempt from
garnishment at the time your
employer pays you. If you
cash your check and put the
money in a bank account, or
if your employer pays you by
direct deposit, a creditor may
claim that the funds are no
longer exempt as wages.
If you receive an order to attend
Supplemental Proceedings, you MUST go or
respond. Our publication
called Supplemental Proceedings has more
information.
What if I need legal help?
 Never give creditors
permission to withdraw
money from your bank
account.
•
Apply online with CLEAR*Online http://nwjustice.org/get-legal-help
or
•
Call CLEAR at 1-888-201-1014
CLEAR is Washington’s toll-free, centralized
intake, advice and referral service for lowincome people seeking free legal assistance
with civil legal problems.
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•
Outside King County: Call 1-888201-1014 weekdays from 9:10 a.m.
until 12:25 p.m. CLEAR works with a
language line to provide interpreters
as needed at no cost to callers. If
you are deaf or hard of hearing,
please call 1-888-201-1014 using
your preferred TTY or Video relay
service.
•
King County: Call 211 for
information and referral to an
appropriate legal services provider
Monday through Friday from 8:00
am – 6:00 pm. You may also call
(206) 461-3200, or the toll-free
number, which may be useful when
calling from a pay phone, 1-877-211-
WASH (9274). 211 works with a
language line to provide interpreters
as needed at no cost to callers. Deaf
and hearing-impaired callers can call
1-800-833-6384 or 711 to be
connected to a relay operator at no
cost, who will then connect them
with 211. Information on legal
service providers in King County may
also be accessed through 211’s
website
at www.resourcehouse.com/win211
/.
•
Persons 60 and Over: Persons 60 or
over may call CLEAR*Sr at 1-888387-7111, regardless of income.
0208EN
This publication provides general information concerning your rights and
responsibilities. It is not intended as a substitute for specific legal advice.
This information is current as of the date of its printing, January 2013.
© 2013 Northwest Justice Project — 1-888-201-1014
(Permission for copying and distribution granted to the Alliance for Equal Justice and to individuals for non-commercial
purposes only.)
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