What happens if a debt collector garnishes your wages and freezes your bank account?

MoneyWatch: Managing Your Money What happens if a debt collector garnishes your wages and freezes your bank account? We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Angelica Leicht Angelica Leicht Senior Editor, Managing Your Money Angelica Leicht is the senior editor for the Managing Your Money section for CBSNews.com, where she writes and edits articles on a range of personal finance topics. Angelica previously held editing roles at The Simple Dollar, Interest, HousingWire and other financial publications. Read Full Bio Angelica Leicht April 10, 2026 / 11:49 AM EDT / CBS News Add CBS News on Google A bank levy and a wage garnishment occurring simultaneously can cause serious issues with your finances. Gary Alvis/Getty Images Many borrowers assume that falling behind on a debt means dealing with collection calls, a damaged credit score and the slow grind that comes from an uptick in financial stress. Few expect to check their bank balance one morning and find it frozen, though, or to open a pay stub and discover a portion of their earnings has already been intercepted before the money ever reached them.The debt collection process is often more aggressive than expected, however. Once a creditor clears the legal prerequisites, nothing prevents them from simultaneously directing a writ to your employer to garnish your wages and a separate writ to your bank to freeze the cash in your account. That means a single unpaid debt can attack your finances from two directions at once.When you're already stretched thin, the combination can be devastating, making it tough or impossible to cover your necessary expenses and leaving little to no cushion. Understanding exactly how this process works, though, and what protections exist, can make a significant difference in how you respond.Find out how t...