Subpoenas & Garnishments

What is garnishment?

Garnishment is a legal process that allows a creditor to take money from your account to pay off an unpaid debt. This usually happens after a court confirms that the debt is valid and still outstanding. It typically applies to consumer debts such as unpaid credit card balances, medical bills or student loans. When Navy Federal receives a valid garnishment order, we’re required to place a hold on your account or remove funds as directed.

How does Navy Federal respond to a garnishment order?

When we get a garnishment order, we review the member’s accounts to determine how much can legally be garnished. After that, we file a formal response with the court or authority that issued the order. As required by law, we also send copies to the creditor or their attorney.

Are federal benefit payments protected from garnishment?

Yes. If you receive federal benefits (like Social Security or VA payments) through direct deposit, the law requires financial institutions to protect those funds for 2 months after each deposit—unless the garnishment order specifically says otherwise. The protected amount must remain available for you and cannot be frozen. We calculate how much is protected for each account in your name.

Any funds beyond the protected amount may be subject to garnishment. We handle those extra funds using our usual process, which could include freezing them. If you have questions about your case, it’s best to consult a qualified attorney for legal advice.

Why did Navy Federal restrict access to my federal benefits?

Sometimes the U.S. government or a state child support enforcement agency can garnish federal benefits. They do this by issuing a garnishment or child support order along with a Notice of Right to Garnish Federal Benefits. We’re legally required to comply with these orders. This means we must hold all funds in the affected accounts—including federal benefit payments—until the order is resolved.

How long does Navy Federal have to respond to a garnishment?

Response times depend on state and federal laws, but generally, we must file an answer within 1 to 30 days from the date the order is served.

Does Navy Federal charge a processing fee for garnishments?

Yes, as allowed by state and federal regulations. We list this legal processing fee in our Schedule of Fees under Miscellaneous Account Services. The fee is typically $100 per occurrence, or the maximum amount permitted by state law—whichever is less.

Can Navy Federal release my funds before the garnishment expires?

We can only release your funds with a valid creditor release or court order, or when the garnishment legally expires. 

What is a child support order?

If ordered child support payments go unpaid, a child support enforcement agency can direct us to withhold funds up to the overdue amount. We review the account and place holds on funds as outlined in the order.

What is a tax lien?

A tax lien is a legal claim placed by state or federal tax authorities to recover overdue taxes. When we receive a tax lien order, we follow the official directives by placing account restrictions and ensuring compliance within the required legal timelines.

Can Navy Federal provide advice on how to collect my judgment?

Navy Federal doesn't offer legal advice. For legal support, please contact your local attorney or bar association. 

The creditor has released the legal order affecting my account. How do I submit this to Navy Federal to release my accounts?

You can deliver a copy of the release or dismissal to any Navy Federal branch location, or mail it to Navy Federal Credit Union, Attn: Garnishments, PO Box 2464, Merrifield, VA 22116.