Can a Creditor Freeze or Garnish My Bank Account in Maryland?
- Sheereen E. McNair, Esq.
- Jul 5
- 3 min read
Yes. Once a creditor wins a court judgment against you in Maryland, they can ask the court for a writ of garnishment that freezes the money in your bank account. You usually find out when your debit card stops working or a payment bounces. The good news is that not all of your money is fair game, you have a short window to claim what the law protects, and filing bankruptcy triggers an automatic stay that releases the freeze. Acting quickly is what protects your money, because the clock starts the day the bank is served.
How a Bank Account Garnishment Works in Maryland
A creditor cannot touch your account on a hunch. First they have to sue you, win a judgment, and then file a Request for Writ of Garnishment of Property with the court. The court issues the writ to your bank, and the bank freezes the funds up to the amount you owe. Your bank can also charge you a processing fee for handling the freeze, which makes acting fast even more important.
What Money Is Protected
Maryland and federal law shield part of what is in your account.
Maryland automatically protects the first 500 dollars in your account, with no action needed from you.
You can claim a wildcard exemption of up to 6,000 dollars for any reason, but only if you file the request in time.
Federal benefits like Social Security, SSI, VA benefits, and most federal pensions are protected, and banks are required to shield up to two months of those benefits that arrive by direct deposit.
You Have 30 Days, So Move Fast
To claim the 6,000 dollar exemption you must file a Motion for Release of Property from Levy or Garnishment, Maryland court form DC-CV-036, within 30 days of the date the bank was served. Miss that window and the creditor can ask the court to hand your frozen funds over to them. This is the single most time-sensitive step, and it is easy to lose track of when you are already stressed.
How Filing Bankruptcy Stops It
The moment you file Chapter 7 or Chapter 13, a federal automatic stay goes into effect. It is a court order, not a request, and it requires the creditor to stop the garnishment and release the freeze. We also send direct notice to your bank and the creditor so the hold comes off as quickly as possible.
Can I Get Frozen or Garnished Money Back?
Sometimes, yes. If money was taken from your account within 90 days before you filed and the amount is over the legal threshold, it may be recoverable as a preferential transfer. We look at the timing and the amounts to see what can be clawed back for you.
Maryland Specific Insight
Maryland is one of the easier states for a creditor to reach a bank account once they hold a judgment, and the 30 day exemption window is strict. If your account holds protected benefits like Social Security mixed with other deposits, the bank may freeze everything until the protected portion is sorted out. Getting an attorney involved early keeps protected money from being tied up longer than the law allows.
Reality Check
A frozen account does not unfreeze itself. Every day it stays frozen is a day you cannot pay rent, buy groceries, or cover a car payment. Whether the right move is claiming your exemption, filing bankruptcy, or both, the worst choice is waiting. The protections exist, but they only help if you use them in time.
Related Questions
Ready to Stop the Bleeding?
Talk to Middleton Legal today. Maryland residents get honest answers, fast. Call 240 896 3253 or book your free consultation.
Comments