At what point do you not keep money in bank accounts?

[AllMyFault]

I'm preparing to file a 7 and haven't paid most creditors for 90 days now. I have heard stories about creditors levying money from bank accounts; I had no idea they could even do this. I suppose that is why most begin cashing checks for cash and paying bills with money orders. When do you know you've reached the point where you risk this possibility?

Thanks!

[LALADY]

All creditors are different. My neighbors were not pursued for over a year. They had many of the same creditors as I did, and mine were relentless. It is also a comfort level you feel as well. I/my neighbors are in so Cal.

I can tell you if you are preparing to file 7, you had better watch withdrawals from your accounts, as they may be looked at.

[AllMyFault]

Hmm...let me do a better job asking my questions.
Will and can creditors levy money in bank accounts?
When can / will they do it?
After a judgement?
Can they before that?

Thanks!

[LALADY]

All states are different. Here's California.

http://www.calejl.com/

[frogger]

Hmm...let me do a better job asking my questions.
Will and can creditors levy money in bank accounts?
When can / will they do it?
After a judgement?
Can they before that?

Thanks!

In GA, they must have a judgement before any levy can take place.

[dspii]

An automatic stay is executed and in effect the day you file BK. Nobody can levy, garnish or otherwise take your money without the courts permission. Although, cross collateralization may be an exception, search in the forum for more on that.

[tlcabk]

Just keep in mind if the balance in your bank acct(s) is not exempted you could lose it. Be sure to talk to your attorney about this (although any attorney worth their salt would address this without you asking, I have seen many in the forum who didn't get that info and now the Trustee is asking for that money even though it's now spent on bills and such.)