Need Advice on taxes and accnt. freezing

[bauser37]

i started paper work on bk, everything is set but i will wait to file 1-2 wks because of taxes. i will be getting a refund but i have a judgement against me in dec. 08. (capitol one) nasty company. i do not want afreeze on the bank accnt because i need the refund to pay for monley bills and mortgage. any advise on how to keep the freeze from happennning or whatch out for? can creditors freeze accounts at anytime?
ty and gl all

[Kingxray]

We had a judgment against us (by my dad) before we filed and we did not have our accounts froze but instead had wages garnished. I wouldn't think they would freeze your accounts as it does not yield them any money but they may try wage garnishment. Either way, once you file the BK the garnishments, acct. freezing, etc. is all removed immediately. At least that is how it worked for us. Good luck.

[keepmine]

You need to get a paper check sent to you and then cash it and spend it. You don't want it direct deposited into a bank account because that can be levied.

[bauser37]

ty for the reply, what is the paper check method?

[magyar123]

ty for the reply, what is the paper check method?

Just what it says - paper check. On he last lines on your tax return you are asked if you want your check automatically deposited. If you answer "yes", you will have to enter your banking information. If you answer "no" then the IRS will send you a paper check - eventually.

[freshstartfl]

It's been several years since I've worked in collections, so please don't take this as absolute fact -- laws could be different now. But, I believe it depends on what state you are in. In some states, a bank account seizure can't be done without being done in conjunction with another action -- such as wage garnishment or house lien. In some states, it can't be done at all.

[Trixie007]

How about opening a new account, then filing with direct deposit? 8-15 days for the money to hit - unlikely they would find the new account fast enough... Just a thought. Also, I believe I've read that a judgement alone is not enough for them to get into you bank account, they also have to go thru the courts for that.

[Floridagail]

I also have Judgement filed against me Dec3, I was prepared to not file bkrupty due to being judgement proof, however Capital One sent me a order to provide financial information such as bank account. job etc. I called attorney they told me to not put any money in bank account no direct deposits etc. Since I would have to provide info to Capt One. They could freeze my account easily. Once they have Judgement.

So I stopped direct deposits and decided to go ahead and file chapter 7 anyway, as they could require me to provide the infor every time they thought I may have money.
Per my attorney.


Ch 7 Jan7-2009
Meeting of C Feb 10-2009