I have an account that has been overdrawn for 60+ days. The account also has an active garnishment attached to it that has not been released.

Are there any rules regarding charging off an account that is more than 60 days overdrawn and garnished as well?

I'm not sure how to charge it off and leave the garnishment attached and report to ChexSystems. Could I just set the account up to "no post" so that nothing could be accepted into the account until we receive a release for the garnishment? Could I still report it to ChexSystems?

Any time you find yourself dealing with a corner case on a writ or garnishment, it's wise to run the scenario past your legal counsel.

That said, my non-counsel opinion is that you may be overthinking this one a bit. A garnishment attaches the funds the account. Assuming the account was already below $0 when you received the garnishment, you never had any funds in your possession to attach. If this scenario were happening at my desk, I would move forward with the chargeoff and close the account.

Charge-off is an accounting operation and has nothing to do with whether you let the account live or die on your system. If the account has been overdrawn for more than 60 days, you have no option but to charge off the negative balance.

Like JacFSB said, run it by your legal counsel. I doubt that a garnishment requires that you leave a negative balance account open.

Partially an echo, in some states a garnishment constitutes a continuing lien and attaches to future deposits. If that's the case in your state, your question is understandable. Regardless, you still have the right to bring the account balance back to zero even if you must keep it open waiting in vain for some future deposit.

Ask your legal counsel.

If your state says a garnishment is only a "snapshot" and no continuing lien is involved, then closing the account is simply your prerogative. Write the customer and tell him that it's done and present him a bill for the overdraft...