What happens if you switch banks after a levy or garnishment order?

MoneyWatch: Managing Your Money What happens if you switch banks after a levy or garnishment order? 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 9, 2026 / 2:22 PM EDT / CBS News Add CBS News on Google Before you transfer funds to a new bank account to avoid garnishment, it's worth knowing what could happen. Supatman/Getty Images Rising credit card debt levels and high borrowing costs are adding a lot of extra pressure to borrowers' finances right now, and it's causing some big issues in terms of unpaid and overdue debt. With credit card APRs still hovering above 21% and payment delinquency rates climbing, more borrowers have been finding themselves falling further behind and are now on the receiving end of aggressive collection tactics. For some, that escalation leads to being sued over their unpaid debt.If you're sued over delinquent debt and the creditor secures a court judgment against you, they gain access to a set of powerful collection tools, which could give them the ability to go straight to the source of your money via a wage garnishment or bank levy. If that happens, the impulse may be to act fast to try to mitigate the fallout. After all, if you're watching funds disappear from your account, the instinct may be to move your money somewhere safer. Before you transfer your direct deposit to a new institution or close out your existing account, though, it's worth understanding what could happ...