What is the Garnishment Bank Act?

The Garnishment Bank Act is a legal act that exists in the state of Kansas and deals specifically with banking law. It is one of the laws that protects borrowers from having their bank accounts garnished by creditors. The Garnishment Bank Act prevents a judgment creditor (a person who has been awarded a legal judgment against a debtor) from directly seizing a debtor’s bank accounts in order to receive payment for a court-ordered debt. The Act also requires the creditor to make certain disclosures to the customer prior to proceeding with the garnishment, and limits the amount of the garnishment. It requires that creditors give the customer at least 15 days notice of their intent to garnish the account and explain the right to contest the judgment, and also outlines the maximum amount of funds that could be garnished from the account (usually a maximum of 25 percent). The Garnishment Bank Act is an important protection for customers and it is important that they understand their rights under this law. It ensures that debtors are not unfairly taken advantage of by creditors who attempt to garnish bank accounts without giving customers the opportunity to contest a judgment.

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What is the Garnishment Bank Act?

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