For most unsecured debts — credit cards, medical bills, personal loans — a debt collector cannot simply take money out of your bank account. They first have to sue you, win a judgment in court, and then use that judgment to request a bank levy or garnishment through the legal system.
The typical legal sequence
- The collector files a lawsuit against you for the unpaid debt.
- You're served with legal notice and have an opportunity to respond in court.
- If the collector wins (including by default if you don't respond), the court issues a judgment.
- With that judgment, the collector can request a bank levy, which your bank is legally required to comply with.
Ignoring a lawsuit notice is the biggest mistake
Many judgments happen by default because the person never responded to the court summons. Responding — even without a lawyer — preserves your right to dispute the debt or negotiate before a judgment is entered.
Funds that are often protected from garnishment
Certain types of income are federally protected from most garnishments even after a judgment, including Social Security benefits, SSI, VA benefits, and certain retirement funds. Protections and exact rules vary by state, so it's worth checking your state's specific exemptions if you're facing a judgment.