Quick answer

Garnishment is a means of enforcing a money judgment (or a preliminary attachment) by which the court, through the sheriff, reaches property, credits, or money of the judgment debtor that is in the hands of a third person (the garnishee), and orders that third person to hold and turn it over to satisfy the judgment. Bank deposits are a common target: when a judgment debtor has money in a bank, the creditor may seek to garnish the debtor's bank deposit, and the bank, as garnishee, is directed to hold the amount and remit it to the court or the sheriff to satisfy the judgment. A frequent question is whether the Bank Secrecy Law prevents garnishment, since bank deposits are generally confidential. The answer is no: garnishment of a bank deposit does not violate the law on the secrecy of bank deposits, because garnishment merely reaches the deposit to satisfy a judgment; it does not involve an inquiry or examination into the details of the deposit for the purpose of disclosure, which is what the secrecy law protects. The garnishment simply attaches the deposit as property of the debtor to answer for the judgment. To garnish, the creditor, after obtaining a favorable final judgment (or a writ of attachment), secures a writ of execution, and the sheriff serves a notice of garnishment on the bank, which then holds the debtor's deposit up to the amount of the judgment. Certain funds are exempt from execution and garnishment (such as, in some cases, funds needed for support, or specific exempt properties), and public funds generally cannot be garnished without the proper appropriation. So a judgment creditor may garnish a debtor's bank deposits to satisfy the judgment, and bank secrecy does not stand in the way, because garnishment is not a prohibited inquiry into the deposit.

What Garnishment Is

Garnishment enforces a money judgment (or attachment) by reaching the debtor's money or credits held by a third person (the garnishee), ordering them to hold and turn it over.

Reaching Bank Deposits

A creditor may garnish the debtor's bank deposit; the bank, as garnishee, is directed to hold and remit the amount to satisfy the judgment.

Bank Secrecy Does Not Bar It

Garnishment does NOT violate the Bank Secrecy Law, because it merely reaches the deposit to satisfy a judgment — it is not an inquiry or examination into the deposit's details for disclosure. The creditor secures a writ of execution, and the sheriff serves a notice of garnishment. Some funds are exempt (support, public funds).

Practical Takeaways

Frequently Asked Questions

What is garnishment? A means of enforcing a money judgment by which the court, through the sheriff, reaches property, credits, or money of the judgment debtor in the hands of a third person (the garnishee) and orders it held and turned over to satisfy the judgment.

Can a creditor garnish my bank deposits? Yes. A judgment creditor may garnish a judgment debtor's bank deposits. The bank, as garnishee, is directed to hold the amount up to the judgment and remit it to satisfy the judgment.

Does bank secrecy prevent garnishment? No. Garnishment of a bank deposit does not violate the Bank Secrecy Law, because it merely reaches the deposit to satisfy a judgment and does not involve a prohibited inquiry or examination into the details of the deposit for disclosure.

Are any deposits or funds exempt from garnishment? Yes. Certain funds are exempt from execution and garnishment, such as those needed for support in some cases and specific exempt properties, and public funds generally cannot be garnished without the proper appropriation.

This commentary is for general informational purposes only and does not constitute legal advice. For guidance specific to your situation, please consult a licensed attorney.

If you have questions about your rights or options under Philippine law, our firm is available to assist. You may reach us via Viber or WhatsApp, call us at 0995 433 5550, or send an email to vivasnobles@gmail.com. We look forward to hearing from you.