From the State Bar of Montana CAN MONEY BE TAKEN OUT OF YOUR BANK ACCOUNT? A creditor may be allowed to take funds from your account due to a judgment, but there are some funds that are exempt from this garnishment. If you have filed bankruptcy, your creditor may be blocked from taking any money. There is only a certain amount a creditor can take from your wages. The most a creditor may take from your weekly disposable income is 25%. Also,
$217.50 of your disposable income is always exempt. Other income sources may also be exempt. Some
examples are:
• Unemployment or public assistance benefits like Social Security, LIEAP, and unemployment insurance
• Child support and spousal maintenance
• Retirement or veteran benefits
• Income from an injury illness, or disability
See a full list of exempt funds in the Montana Code Annotated (MCA) in section 25-13-
608. You can find the MCA at your local library, the State Law Library of Montana, or online:
• http://data.opi.mt.gov/bills/mca_toc/index.htm
THE FORMS
Once you receive a notification of seizure that money is going to be taken, you have only 10 days to file your claim of exemption with the court.
First, fill out forms Claim of Exemption and Request for Hearing along with Statement of Claimed Exemptions and Reasons.
These forms can be found by going to:
• www.MontanaLawHelp.org
PREPARING TO FILE
Along with the filled out forms, you need to make sure you file the proof that this money is legally exempt
from seizure, and should not be allowed to be taken from you. Use the calculations provided you on the
www.MontanaLawHelp.org packet to determine if too much of your pay check is being garnished.
Make sure to provide all of your bank statements, benefit statements, and pay stubs. Most benefit
programs and businesses should be able to provide you with any missing documentation upon request. Failure to attach documents proving your claim may result in your request being denied. The documents need to be attached at the time you file the claim, not afterwards. More help is always available by calling the Heenan Law Firm at 406-839-9091.
FILING
Make three copies of all of your papers including the forms and financial statements. File the original
motion and supporting documents with the clerk of court in the county where the court that issued the writ is located. On the same day you must send another copy to your creditors or your creditors’ attorneys. To do this mail the copy to the creditor or creditors attorney using the U.S. Postal Service, Before you file with the court, contact the attorneys your creditor used in the previous judgment to find out if they will return your exempt funds without a hearing and to what address you should send the copy of your court filing.
YOUR HEARING
If everything was filed correctly the court will send a letter called an Order. It will inform you of the date and time of the hearing. Here are some general rules to help you on the day of
your hearing:
• Show up a little early on the day of your hearing to provide extra time in case of an emergency.
• You will also want to have all of the documents you filed and received for this hearing with you.
• Just explain to the judge that exempt funds were or will be taken from your bank account.
$217.50 of your disposable income is always exempt. Other income sources may also be exempt. Some
examples are:
• Unemployment or public assistance benefits like Social Security, LIEAP, and unemployment insurance
• Child support and spousal maintenance
• Retirement or veteran benefits
• Income from an injury illness, or disability
See a full list of exempt funds in the Montana Code Annotated (MCA) in section 25-13-
608. You can find the MCA at your local library, the State Law Library of Montana, or online:
• http://data.opi.mt.gov/bills/mca_toc/index.htm
THE FORMS
Once you receive a notification of seizure that money is going to be taken, you have only 10 days to file your claim of exemption with the court.
First, fill out forms Claim of Exemption and Request for Hearing along with Statement of Claimed Exemptions and Reasons.
These forms can be found by going to:
• www.MontanaLawHelp.org
PREPARING TO FILE
Along with the filled out forms, you need to make sure you file the proof that this money is legally exempt
from seizure, and should not be allowed to be taken from you. Use the calculations provided you on the
www.MontanaLawHelp.org packet to determine if too much of your pay check is being garnished.
Make sure to provide all of your bank statements, benefit statements, and pay stubs. Most benefit
programs and businesses should be able to provide you with any missing documentation upon request. Failure to attach documents proving your claim may result in your request being denied. The documents need to be attached at the time you file the claim, not afterwards. More help is always available by calling the Heenan Law Firm at 406-839-9091.
FILING
Make three copies of all of your papers including the forms and financial statements. File the original
motion and supporting documents with the clerk of court in the county where the court that issued the writ is located. On the same day you must send another copy to your creditors or your creditors’ attorneys. To do this mail the copy to the creditor or creditors attorney using the U.S. Postal Service, Before you file with the court, contact the attorneys your creditor used in the previous judgment to find out if they will return your exempt funds without a hearing and to what address you should send the copy of your court filing.
YOUR HEARING
If everything was filed correctly the court will send a letter called an Order. It will inform you of the date and time of the hearing. Here are some general rules to help you on the day of
your hearing:
• Show up a little early on the day of your hearing to provide extra time in case of an emergency.
• You will also want to have all of the documents you filed and received for this hearing with you.
• Just explain to the judge that exempt funds were or will be taken from your bank account.
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