(818) 382-6200

Current federal law limits impact of bank garnishments on debtor accounts

The Perspective column in the July 24, 2014 issue of the Los Angeles Daily Journal features an article written by G&B Managing Partner, James R. Felton, attorney Robert Weinberg, and G&B law clerk, Tiffany Frank. “Another Roadblock to Effective Collection” describes the challenges facing a creditor when a bank receives a garnishment order for a debtor account. Currently, federal law does not provide for a temporary hold on the assets in the account while the account review is pending. During the two-day period, the account holder has full access to the funds in the account. The article discusses this and other related issues – it’s a must-read for creditors and their legal advisors.