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Unread 05-14-2012, 10:35 AM
 
2 posts, read 6,468 times
Reputation: 11
Default Bank accounts levy

i owe a credit card company $20k and I lost my job last year and havent been able to pay them. I tried to make arrangements with the lawyers that were handling the account to pay them back but they refused any type of arrangement. I just received a letter saying that there is a judgement against me and I was sued.

I am unemployed at the moment but I am very worried about my bank accounts. I have checking accounts in three banks. Can they levy all three accounts? Will I receive a notice of the levy before it happens?
And when they put a levy on the account, can I close that account and open a new one in another bank? I am expecting my income tax check and I am afraid they will take my money before i can withdraw it.

I am thinking of doing a debt settlement with this account. Do you think they will accept to work with a company for me to be able to pay off this debt? Many of my friends are suggesting I do bankrupcy but I dont want to go that route. i do owe the money and I want to pay it off, i just dont have it all at one shot to pay them.

My other question is... i had a little bit of money from my last job and I paid off smaller credit cards I owed. Could I be in trouble because of this?

I appreciate very much all the help anyone can give me on answering these questions. I am so nervous about this...
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Unread 05-14-2012, 11:13 AM
 
590 posts, read 817,664 times
Reputation: 365
IF you are worried about them draining your bank account, I suggest removing all funds and keeping it under your mattress.
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Unread 05-14-2012, 01:34 PM
 
756 posts, read 431,203 times
Reputation: 406
normally they can't do it, unless they win the case in court. Even then it's hard to withdraw your money from your account without your permission.
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Unread 05-15-2012, 03:24 AM
 
Location: 23.7 million to 162 million miles North of Venus
1,184 posts, read 1,441,729 times
Reputation: 1040
I agree with md21722.

Quote:
Originally Posted by Ramiresh View Post
i owe a credit card company $20k and I lost my job last year and havent been able to pay them. I tried to make arrangements with the lawyers that were handling the account to pay them back but they refused any type of arrangement.
Perhaps either the lump sum, or, the amount of the monthly payments you offered was too small.


Quote:
I just received a letter saying that there is a judgement against me and I was sued.
Were you even served?


Quote:
I have checking accounts in three banks. Can they levy all three accounts?
IF they can find the accounts they would get the writ to levy from the judge. IF they find all three then they probably would try to levy all three.

Quote:
Will I receive a notice of the levy before it happens?
Generally, no.

Quote:
And when they put a levy on the account, can I close that account and open a new one in another bank?
Not until either the levy is satisfied or the levy has expired, whichever happens first.

Quote:
I am thinking of doing a debt settlement with this account. Do you think they will accept to work with a company for me to be able to pay off this debt?
You're thinking of hiring a debt settlement company to deal with the lawyer? If you're not using your own lawyer then, imo, you'd probably be much better off doing your own research and dealing with it yourself rather than spending the money on a debt settlement company. It would just be that much more money you would have to offer to the judgment creditor. You might go to creditboards dot com and do some reading, there are plenty of threads about settling a judgment. There are also plenty of threads on vacating a judgment for lack of service.

Quote:
My other question is... i had a little bit of money from my last job and I paid off smaller credit cards I owed. Could I be in trouble because of this?
No, but I wouldn't bring it up unless the court asks.

If you weren't served then you might be able to have the judgment vacated for lack of proper service, especially since they knew where you were to tell you that there is a judgment against you and you had been sued.

If you had been served but failed to answer the summons and show up for the hearing then there isn't much you can do, unless, you can prove that you're low income/no income and a levy on your bank accounts would create a hardship for you and you file a hardship petition with the court. Claiming a hardship would not be that you wouldn't be able to go out to dinner, go to the movies, have a nice cushion in your bank accounts, etc., a hardship would be that you have difficulty paying your rent or mortgage and you have difficulty being able to afford to put food on your table. If your tax return will be sizable then that may kick you out of the hardship status. If it's not sizable then it may not kick you out of hardship status. Also, if you have sizable funds in your bank account(s) right now then you would not be able to claim hardship.



Quote:
Originally Posted by bbnetworking View Post
normally they can't do it, unless they win the case in court. Even then it's hard to withdraw your money from your account without your permission.
They don't need permission from the OP, the judge is the one that gives the permission.
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