Winning a judgment in court is only the first step. Collecting on that judgment — especially when the debtor refuses to pay — is where the real work begins. Fortunately, the law provides several enforcement tools for judgment creditors, including wage garnishment and bank levies.

These are two of the most commonly used legal methods to compel payment. But they work in very different ways, and depending on your debtor’s situation, one may be more effective than the other.

In this blog post, we’ll break down the differences between wage garnishment and bank levies, the pros and cons of each, and when you might want to use one over the other.

What Is Wage Garnishment?

Wage garnishment is a legal process that allows a portion of a debtor’s paycheck to be withheld by their employer and sent directly to the creditor. Once a court approves the garnishment, the debtor’s employer is legally obligated to comply.

How It Works:

1. The creditor obtains a judgment.
2. The creditor requests a wage garnishment order from the court.
3. The court serves the order on the debtor’s employer.
4. The employer deducts a portion of wages and sends it to the creditor until the debt is paid.

Limits on Garnishment:

• Under federal law, up to 25% of disposable income (after taxes and essential deductions) can be garnished.
• Some states impose lower caps.
• Certain income types (like Social Security, unemployment, or disability) are exempt from garnishment.

What Is a Bank Levy?

A bank levy allows a creditor to freeze and seize money directly from the debtor’s bank account. Unlike wage garnishment, which collects money over time, a levy can result in a one-time lump sum recovery — assuming there’s money in the account.

How It Works:

1. The creditor obtains a judgment.
2. The creditor gets a court order authorizing the levy.
3. The court serves the order on the bank.
4. The bank freezes the account and forwards the available funds (subject to exemptions).

Exemptions:

• Some funds, such as Social Security, child support, or certain retirement accounts, may be partially or fully exempt.
• Debtors usually have a short time window to challenge the levy or claim exemptions before funds are released.

Pros and Cons of Wage Garnishment

✅ Pros:

• Steady payments over time
• Easy to monitor once in place
• Works well for debtors with stable employment
• Difficult for debtors to avoid (employers are legally obligated to comply)

❌ Cons:

• Slower recovery process
• Limited to a percentage of income
• Doesn’t work if the debtor is unemployed, self-employed, or working under the table
• May be subject to competing garnishments (e.g., child support)

Pros and Cons of Bank Levies

✅ Pros:

• Potential for immediate lump sum recovery
• Can target multiple bank accounts at once
• Effective for debtors with significant cash assets
• Often catches debtors by surprise (less time to shield assets)

❌ Cons:

• Debtor must have money in the account — at the right time
• Funds may be exempt or partially protected
• Once-off — doesn’t continue pulling funds like wage garnishment
• Requires knowing where the debtor banks

Which Is Better?

The best choice depends on the debtor’s financial situation and the information you have access to.

Choose Wage Garnishment if:

• You know the debtor is employed with a consistent paycheck.
• You want a predictable, long-term recovery.
• You don’t know where the debtor banks but have employment info.

Choose Bank Levy if:

• You have verified bank account information.
• You believe the debtor has substantial funds on hand.
• You want to attempt quick, high-yield recovery.
• The debtor is self-employed or has no regular paycheck.

In many cases, creditors use both methods — sometimes simultaneously — to maximize recovery.

Combining Both for Maximum Effectiveness

A judgment collection attorney may recommend starting with a bank levy, especially if you suspect the debtor has cash on hand. If that fails or only recovers part of the judgment, you can follow up with a wage garnishment to collect the remainder over time.

Some aggressive collection strategies also include:

• Property liens
• Asset seizures
• Turnover orders
• Post-judgment discovery

These legal tools can work together to pressure the debtor and ensure they cannot easily avoid their financial obligation.

Why You Should Work With a Judgment Collection Attorney

While wage garnishments and bank levies are powerful tools, they must be executed precisely and legally. Mistakes in procedure can delay recovery or result in the court dismissing your enforcement efforts altogether.

An experienced judgment collection attorney can:

• Help you choose the best method based on the debtor’s profile
• Locate employment or banking information legally
• File necessary court paperwork and enforcement orders
• Challenge exemption claims or evasive tactics
• Ensure compliance with state and federal laws

Final Thoughts

Getting a judgment is only half the battle. Enforcing it is where the real challenge lies — and knowing when to use wage garnishment, a bank levy, or both can make all the difference.

By understanding your options and working with the right legal professional, you can turn your judgment into actual financial recovery — and finally collect what you’re rightfully owed. We recommend Judgement Collection Attorney.