What can I do about the bank holding my unemployment benefits to payoff legal fees and satisfy a judgment?

You may be able to file a claim of exemption.

I assume it is not the bank that is taking the funds directly .. but that the bank received a garnishment from a different creditor you owe SO you must the garnishment and say it is exempt funds.. e.g. unemployment compensation.

Does not sound legit, but would need more information.

In Nevada, you would file an Affidavit of Exemption, but you must do it timely.

If you deposited your unemployment benefits into a bank account in your name and the bank was served with a garnishment by a creditor they would have to place a hold on the money in your account and apply it to the garnishment. You should receive a copy of the disclosure filed by the bank which would give you the opportunity to challenge the garnishment if you have a defense. If there were legal fees involved in the judgment they would probably be included in the balance showed as owing on the garnishment.