Topics on this page:
- What is a garnishment?
- What is the procedure for garnishment in District Court?
- How does bank garnishment work?
- How does wage garnishment work?
- How much of my wages can be garnished?
- What are some defenses to garnishment?
- What happens when a judgment is satisfied?
What is a Garnishment?
Garnishment is a legal process that allows a creditor to collect a debt by taking a portion of a debtor’s property—most often wages or funds in a bank account—through a court order. Any individual or business may be subject to garnishment if they owe a debt. There are two common types of garnishment:
- Wage garnishment, where a portion of the debtor’s paycheck is withheld.
- Property or asset garnishment, such as seizing funds from a bank account.
In a garnishment case:
- The judgment creditor (or plaintiff) is the person or business owed money.
- The judgment debtor (or defendant) is the person who owes the debt.
- The garnishee is the third party who holds money or property that belongs to the debtor. Examples of a garnishee include an employer, bank, or other similar entity.
Before a creditor can garnish someone’s wages or assets, they must first obtain a final judgment or court order confirming the debt. A garnishment proceeding is then used to determine whether the debtor has any assets that can be used to pay the judgment. For more information on filing a claim, see Collecting a Judgment.
Once a judgment is entered, the creditor can begin collecting what is owed. In Maryland, judgments are enforceable for 12 years and may be renewed. Interest accrues on judgments at the legal rate—typically 10%, or 6% in certain cases.
Read the Law: Md. Code Courts and Judicial Proceedings § 11-107
What is the procedure for garnishment in District Court?
Note: the following processes are based on District Court Rules of Procedure. They apply if you have a judgment in the District Court of Maryland. If you have a judgment in Circuit Court, similar rules apply, but with some differences. Notably, the Circuit Court does not have forms for judgment creditors to use. Some Circuit Courts may allow you to use District Court forms. Others may require you to draft your own motions and requests. If you have questions about court procedure, talk to a lawyer.
Read the Rules:
- District Court: Md. Rules Title 3, Chapter 600.
- Circuit Court: Md. Rules Title 2, Chapter 600.
Step 1: Creditor Files Request for Garnishment
The judgment creditor files a Request for Garnishment with the court and pays the required filing fee. The judgment creditor can only file a request for garnishment after a final judgment establishing that the defendant (judgment debtor) owes money to the plaintiff (judgment creditor has been entered.
Once the Request is accepted, the court clerk or a judge will sign it and issue a Writ of Garnishment. This writ is a formal court order directing a third party, called the garnishee, to hold any property they possess that belongs to the judgment debtor.
Step 2: Creditor Serves Writ of Garnishment on Debtor
Once the Writ of Garnishment has been issued by the court, it must be served on the garnishee. The Writ can be served using one of the following methods:
- Certified mail (restricted delivery)
- Private process
- Sheriff or constable
The garnishee is not required to take any action until they have been properly served.
For more information on service of process see Frequently Asked Questions about "Service of Process” in Maryland.
Step 3: Garnishee Responds to Writ of Garnishment
After being served, the garnishee has 30 days to file an Answer with the court. The answer must state:
- Whether the garnishee is holding any property of the judgment debtor, and
- If so, the nature and value of that property.
The garnishee may raise any legal defenses they have to the garnishment, including any defenses the judgment debtor could assert. After filing an answer, the garnishee has the option to:
- Pay any garnished funds into the court, and
- Deliver any garnished property to the sheriff.
NOTE: If the garnishee has already filed an answer admitting that they owe the debtor money or hold the debtor’s property, they do not need to file an amended answer if their debt to the debtor later increases, or they receive additional property belonging to the debtor.
If the garnishee fails to file an Answer, the court may seek enter a default judgment against the garnishee for the amount owed by the debtor. In wage garnishment cases, a failure to respond may result in the garnishee being held in contempt of court.
Read the Rule: Md. Rule 3-509, 3-645
Step 4: Party Submits Request for Release of Garnished Property
Before the court enters judgment in the garnishment action, the judgment debtor or a third-party claimant may request the release of the garnished property.
- The debtor may file a Motion to Release Property asserting that the property is exempt or otherwise not subject to garnishment. For example, the debtor can file a motion showing that the only funds in the account are Social Security and Veterans’ benefits, which are exempt from garnishment.
- A third party may file a Motion to Release Property that claims they own the garnished property. For example, a party to a joint bank account may file a motion that claims the account is jointly owned and not solely the debtor’s.
These procedures allow parties to raise exemptions or contest the garnishment before the court orders the transfer of funds or assets to the judgment creditor.
Read the Rule: Md. Rule 3-645(i); Md. Rule 3-643
Step 5: Court Issues Order for Garnishment
If no valid objection or exemption is raised, the creditor may request a court order to collect the garnished property. This is done by filing a Request for Judgment – Garnishment (Form DC-DV-062).
If granted, the court will issue an Order for Garnishment, directing the garnishee to transfer the withheld funds or property to the judgment creditor.
This order remains in effect until:
- The full judgment is paid, or
- The court issues a new order terminating the garnishment.
How does bank garnishment work?
When a creditor obtains a judgment against a debtor, they can ask the court to issue a Writ of Garnishment that allows the creditor to collect the amount owed directly from the debtor’s bank account. When a bank receives a writ of garnishment issued against a bank account:
- The bank freezes the debtor’s account up to the amount of the judgment, including costs and interest.
- The debtor cannot access funds from the account unless the balance exceeds the garnished amount.
- Additional deposits, such as direct deposits, may also be frozen.
The bank must complete and send a Confession of Assets (Form DC-CV-61) to the creditor, the debtor, and the court. This form discloses how much money, if any, is being held due to the garnishment. The bank may charge fees related to the garnishment.
Are any assets protected from garnishment?
Some money in a bank account is protected by law and cannot be garnished. Protected assets include:
- Joint accounts (for example, accounts held with spouses or business partners) are protected unless all account holders are judgment debtors.
- $500 in a deposit account is exempt from garnishment.
- Federal benefits, such as:
- Social Security,
- Federal pensions,
- Disability benefits
- State benefits, such as
- Unemployment insurance
- Child support payments
How can I claim an exemption for funds in a bank account?
If you believe the funds in your bank account are protected, you must file a Motion for Release of Property from Levy/Garnishment (Form DC-CV-036) within 30 days of the date the Writ was served on the bank.
- If the court grants your exemption, the bank will release the exempt funds.
- If you do not file or your claim is denied, the creditor may file for Judgment of Garnishment (Form DC-CV-062) to have the court direct the bank to turn over the frozen funds.
If the total account balance is under $6,000, you may also file Form DC-CV-036 to seek full release of the funds.
Read the Law: Md. Code, Courts and Judicial Proceedings § 11-504
Read the Rule: Md. Rule 3-645.1
How does wage garnishment work?
A wage garnishment is a court-ordered process where a portion of your paycheck is withheld to pay debt you owe. Once an employer is served with the Writ of Garnishment, they must:
- Begin withholding the required amount from the debtor’s paycheck after being served with the Writ.
- Continue withholding until the judgment is fully paid or the court orders otherwise.
Your employer is legally required to comply with the garnishment order and cannot fire you for wage garnishment due to one debt in any calendar year.
The amount withheld is limited by state and federal law. You have the right to object to the garnishment by filing a Motion (DC-002) to explain any defenses or exemptions you may have.
How am I notified about amounts withheld from my wages?
The judgment creditor must send you and your employer a monthly report showing how payments have been credited toward the judgment. This report must be sent within 15 days after the end of each month.
If this report is not sent, the debtor or employer can:
- File a motion to dismiss the garnishment
- Request attorney’s fees and costs
Read the Rule: Md. Rule 3-646
How much of my wages can be garnished?
The amount of money withheld from your wages is limited by state and federal law. These limits depend on the date the wage garnishment was filed and the applicable minimum wage at that time.
Garnishments filed BEFORE October 1, 2020
If the garnishment was filed before October 1, 2020, the following rules apply:
- Wages cannot be garnished if your disposable earnings are less than 30 times the federal minimum hourly wage per week (which is $7.25/hour, or $217.50 per week).
- Even if your wages exceed this threshold, no more than 25% of your disposable weekly wages can be garnished.
Example:
- Hourly wage: $7.25 (federal minimum wage)
- Weekly gross income: $290.00 (40 hrs × $7.25)
- Disposable earnings after deductions: $232.00
- 30 × $7.25 = $217.50
- Amount that can be garnished: $232.00 − $217.50 = $14.50 per week
Read the Law: 15 United States Code § 1673
NOTE: There may be some confusion because Maryland law and federal law measure garnishment exemptions differently. The state law defines how much must be exempted, while federal law caps how much may be garnished. For a discussion of the conflicting laws, see Marshall v. Safeway, 437 Md. 542 (2014).
Garnishments filed AFTER October 1, 2020
If the garnishment was filed on or after October 1, 2020, Maryland law changed to better reflect state minimum wage rates:
- Wages cannot be garnished if your disposable earnings are less than 30 times the Maryland minimum wage, multiplied by the number of weeks during which the wages were earned.
- Again, even if wages exceed this threshold, no more than 25% of your disposable wages may be garnished in any given week.
Example (based on the District Court’s Wage Garnishment brochure):
- Hourly wage: $15.00 (Maryland minimum wage for employers with 15+ employees)
- Weekly gross income: $600.00 (40 hrs × $15.00)
- Disposable earnings after deductions: $465.50
- 30 × $15.00 = $450.00
- Amount that can be garnished: $465.50 − $450.00 = $15.50 per week
Read the Law: Md. Code, Commercial Law § 15-601.1
What Are Disposable Wages?
Disposable wages are your earnings after legally required deductions, such as:
- Federal and state income taxes
- Social Security and Medicare
- Unemployment insurance
- Health insurance premiums (if required by law)
Because required deductions may vary from person to person, the amount of disposable wages can differ.
What are some defenses to garnishment?
Garnishee Defenses
A garnishee (usually an employer or bank) may challenge a garnishment by filing a motion with the court. If the garnishee files an answer to the writ of garnishment and no further action is taken within 120 days, the garnishee may file a Notice of Intent to Terminate the garnishment.
Judgment Debtor Defenses
The judgment debtor can ask the court to release some, or all of, the garnished property by filing a motion within 30 days after the writ of garnishment is served on the garnishee. A release may be granted if:
- The judgment has been vacated, expired, or satisfied.
- The property is exempt from garnishment under the law.
- The judgment creditor has not followed the required court procedures.
Third-Party Claims
Someone other than the judgment debtor who has an interest in the garnished property may also file a motion asking the court to release it. This situation often arises when a bank account is jointly owned, but only one account holder is a judgment debtor.
Read the Rule: Md. Rule 3-645
What happens when a judgment is satisfied?
When the judgment is paid in full, the creditor must:
- File a written statement with the court and
- Send a copy to the debtor
After the court receives the statement from the creditor, the clerk will mark the judgment as satisfied. If the creditor fails to file the notice of satisfaction, the debtor can request a court order to declare that the judgement has been satisfied. If the court enters an order of satisfaction, it may order the judgment creditor to pay the costs and expenses incurred in obtaining the order, including reasonable attorney's fees to the judgment debtor.
Read the Rule: Md. Rule 3-626