What is the Garnishment Bank Act?

The Garnishment Bank Act is a Texas law that concerns the garnishment of bank accounts. This Act dictates when and how banks can be served with garnishment orders and the procedure banks must follow in order to comply with the orders. This law helps protect the funds of innocent third parties by providing banks with guidance from the Texas Legislature on how to legally garnish accounts. Garnishment is a legal process that allows creditors to collect on a debt owed by a debtor. Typically, creditors must sue the debtor in court and get a judgment before they can garnish bank accounts. If the court decides in favor of the creditor, it will issue a garnishment order to the bank. This order requires the bank to hold the funds of the debtor in the account(s) while the creditor and debtor work out an agreement on paying off the debt. The Texas Garnishment Bank Act is designed to ensure that the garnishment process is properly managed and that the rights of innocent third parties are respected. It states that the bank must place a hold on the account for a certain period of time before releasing the funds to the creditor. Furthermore, the law requires banks to provide certain documentation to the court before the funds can be released. The Texas Garnishment Bank Act helps ensure that banks follow the correct procedures when dealing with garnishment orders. This protects the rights of innocent third parties whose accounts may be affected by the garnishment process and ensures that creditors are able to collect on debts owed to them, in accordance with the law.

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What is the Garnishment Bank Act?

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