Legal Question in Credit and Debt Law in Georgia

Often yes, assuming they have a judgment.

Assuming they have a judgment, yes. See a lawyer today. In some cases (usually by a quick bankruptcy filing, and sometimes by other means) the money may possibly be recoverable if you act very quickly.

It depends. The collection agency can do nothing unless they are also the owners of the debt. Is this a junk debt buyer who owns the debt and is that who obtained a judgment? Assuming that you have been sued, the law firm (the junk debt buyer can only act through attorneys) cannot do anything to collect until a judgment is entered and then 30 days have elapsed since the judgment was entered.

Even then, the ability of the law firm to levy the account may be restricted. What is the source of income that was deposited into the account? You only relate that your entire check was deposited. Was it wages from your employer? Or Social Security or something similar, like unemployment?

The character of the funds/source will determine if it can be seized. Social Security or other federal benefits cannot be seized and the bank is required to examine the source of the funds and determine if they are exempt or not. The bank is not supposed to be able to hold funds that are exempt, at least funds covering the last 60 days. Same for unemployment - it cannot be garnished at all for ordinary debts except child support. Sometimes banks mess up though and they need to be advised of the rules.

Wages are a different matter. That is the whole purpose of wage garnishment. The creditor is limited to garnishment of up to 25% of your disposable pay but it would depend on how often a debtor is paid and how much the debtor is paid. If there is a wage garnishment in place then garnishing the entire bank account may not be proper.

However, if this has happened, then you are notified of any bank levy and can file a response requesting a hearing if you claim that all or part of the funds are exempt.

I agree with Attorney Ashman that you need to see a lawyer immediately. I suggest that you go to the county where the judgment was rendered and get a copy of the entire court file and pay the attorney to review it. The attorney needs to see when the judgment was entered and also needs to know information about your bank account. It may be possible to work something out here (perhaps a temporary payment plan) and get the creditor to release its hold on some or all of your funds. Or you may have to file bankruptcy depending on your circumstances.

If you are not going to act immediately, I would stop any further direct deposits if it is wages being seized. I would either open an account at an online bank, out-of-state bank located purely in the other state or at a credit union and have your pay direct deposited there. If you are married, sometimes you can direct your pay to be deposited into a bank account solely in your spouse's name Or maybe do without a bank account at all, get a paper check and get it cashed at a place like Wal Mart or some other check cashing entity (or have your funds deposited onto a debit card if that is an option).

Please see an attorney to review your options.