How to Garnish a Bank Account in Vermont After a Small Claims Judgment

Bank Garnishment in Vermont Is Non-Wage Trustee Process

If the debtor has money in a bank or credit union, you can reach it through what Vermont calls non-wage trustee process under V.R.C.P. Rule 4.2. The bank is the "trustee" holding the debtor's funds. You need a court order — you cannot contact the bank directly and demand they hand over the money.

This tool can start after Rule 10's 30-day period expires — from judgment entry if the defendant appeared, or from service of a default judgment — and when no appeal or timely post-judgment motion is keeping the Rule 62 stay in effect.

Filing the Motion (Form 100-00505)

File a Motion for Trustee Process — Non-Wage Garnishment (Form 100-00505) with the Civil Division clerk and pay the $65 filing fee. Your motion must identify the specific bank or credit union where the debtor holds an account.

The court issues a non-wage Trustee Summons. You assemble service packets containing:

• A copy of Form 100-00505
• Trustee Disclosure — Non-Wage Garnishment (Form 100-00297)
• The hearing notice
• List of Exemptions (Form 100-00511)

A county sheriff or constable serves both the bank and the debtor at least 14 days before the hearing.

What Happens When the Bank Gets Served

Upon receiving the Trustee Summons, the bank freezes available funds up to the judgment amount. The bank then completes Form 100-00297, disclosing what accounts the debtor holds and their balances.

This is where exemptions come into play.

Automatic Protections on Bank Accounts

Two layers of protection apply before any funds can be released to you:

Federal benefit lookback (31 C.F.R. Part 212): The bank must review the preceding two months of account activity for direct deposits of Social Security, SSI, VA benefits, and federal civil service retirement pensions. Any benefit funds deposited during that window are automatically protected and cannot be frozen or turned over.

Vermont's $700 deposit exemption (12 V.S.A. § 2740(15)): Vermont law protects the debtor's interest, up to $700 in value, in bank deposits or deposit accounts.

If the debtor shares a joint account with a non-debtor (a spouse or business partner), the court holds a hearing to determine which portion of the funds belongs to the debtor.

The Hearing and Release of Funds

At the hearing, the judge determines how much of the frozen balance is non-exempt. If non-exempt funds exist, the court orders the bank to release the specified amount to you.

Any frozen funds beyond what satisfies your judgment must be released back to the debtor.

When You Don't Know the Bank

If you don't know where the debtor banks, you'll need to start with a financial disclosure hearing to compel the debtor to reveal their accounts under oath.

The Vermont judgment collection guide covers the full sequence — from identifying the right enforcement tool to closing the case after you collect.

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