Garnishment of Florida Bank Account In Another State

A Florida man opened a wage account at a local branch of a large national bank in which he deposits only his salary. The man is married and head of household. A creditor got a judgment against the same man in California. The creditor did not yet domesticate the judgment in Florida. The creditor garnished the account at a California branch of the same bank. California law does not provided unlimited protection from wage garnishments and does not protect wages deposited in bank accounts. Is the Florida debtor’s wages protected from garnishment in California.

I’m not sure. I spoke with a very good collection attorney, and he is not sure. There is a Florida statute that says bank accounts opened in any Florida bank will be governed by Florida law unless otherwise specified in the depositor’s written agreement with the bank. If the debtor’s banking agreement is silent on this issue then his Florida protection against wage garnishment would apply. But the national bank may have an agreement that specifies which state’s law is applicable to deposits in branches all over the county. Such contract provision makes sense for the bank in order to consolidate its legal actions with its depositors under a single legal code.

In either event, the debtor will have to file a motion in California to dissolve the garnishment. A Florida court will not likely take jurisdiction over a Florida judgment.

posted by Jonathan Alper, asset protection and bankruptcy attorney, Orlando, Florida