What is the Garnishment Bank Act?

The Garnishment Bank Act is a piece of banking law that applies to the state of Delaware, and which regulates how money seized from debtors via garnishment can be used by those entities who have been granted a judicial award via garnishment. The Garnishment Bank Act dictates that money seized from debtors via garnishment must be kept separate from other bank accounts, and that an accounting system of the funds must be kept in order to track them. In addition, the Garnishment Bank Act requires that the bank make a report of each garnishment action to the court that granted the award, and to the debtor. This report must include the name of the garnishee, the name of the person filing the garnishment, the type of garnishment and the amount of money seized. Furthermore, the Garnishment Bank Act imposes certain restrictions on how the money seized from debtors can be used. For example, the garnishor must not benefit financially from the seizure, and any funds seized must be used for the purpose they were intended for. Finally, the Garnishment Bank Act requires that the garnishor provide notice to the debtor of any seizure before it is carried out. This ensures that the debtors are aware of any potential garnishment action, so they can take steps to protect their assets. By following the rules set out by the Garnishment Bank Act, banks in Delaware are able to protect themselves and their customers from any misused funds.

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What is the Garnishment Bank Act?

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