What is the Garnishment Bank Act?

The Garnishment Bank Act (GBA) is a law in the state of Nebraska which was designed to protect consumers from having their bank accounts garnished by creditors. The GBA sets out the legal framework which creditors must abide by when attempting to collect debts from a debtor’s bank account. The law requires creditors to provide a notice of garnishment to the debtor asking for payment prior to filing a garnishment action against the debtor’s bank account. The notice must contain certain information such as the amount of the debt, the creditor’s name and address, and the right of the debtor to contest the garnishment. The GBA also allows debtors to object to the garnishment if they believe it to be improper. If the debtor does object, the petitioner must either offer the debtor an acceptable payment plan or file a motion with the court asking for a hearing. The court must then hold a hearing to decide if the garnishment is proper and if it should be allowed. The GBA also requires banks to provide notice to debtors when a garnishment is received. It also requires banks to freeze the garnished funds in the debtor’s account until a court order is issued. The GBA also prohibits banks from charging fees or making deductions from the funds in the garnished accounts. Lastly, the GBA prevents creditors from garnishing the same bank account within the following 6 months after the original garnishment.

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What is the Garnishment Bank Act?

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