If Summoned, How Much Time Will I Have?

[ApresMoi]

I am sure this has been answered before, but I can't find it in search results. Question: If I get served with a summons from a creditor attempting to levy my bank account, how much time will I have to respond? I ask, as I am still 'at risk' (the law firm hasn't filed for me just yet).

[newbie2]

I am sure this has been answered before, but I can't find it in search results. Question: If I get served with a summons from a creditor attempting to levy my bank account, how much time will I have to respond? I ask, as I am still 'at risk' (the law firm hasn't filed for me just yet).

You have to be sued first, then they have to win the suit, then they can petition for garnishment.

Look up your countys district court (or circuit court) website and they will have the rules of the court for civil suits for you to review for the timelines.

[ApresMoi]

Thank you. So in other words, there would be ample time for me to remove any funds from the account (even if I were served)? Can someone confirm? I want to get this clarified before I deposit another check into my account.

For what it's worth, my credit union told me they only show IRS levys (they checked their records while I was on the phone), none from credit card companies. So it just may be that bank account levy is not something that creditors do that often. Pure speculation on my part.

You have to be sued first, then they have to win the suit, then they can petition for garnishment.

Look up your countys district court (or circuit court) website and they will have the rules of the court for civil suits for you to review for the timelines.

[music12]

after suing you and getting a judgment, the creditors will first try to levy on bank accounts they know about.

it's ok to move your money after being sued, but DO NOT wait until you get a notice to come in to court and report on your assets or a petition for garnishment. if you move money after that, you may be in violation of a court order.

[WhatMoney]

Thank you. So in other words, there would be ample time for me to remove any funds from the account (even if I were served)? Can someone confirm? I want to get this clarified before I deposit another check into my account.

For what it's worth, my credit union told me they only show IRS levys (they checked their records while I was on the phone), none from credit card companies. So it just may be that bank account levy is not something that creditors do that often. Pure speculation on my part.

AFTER you have been sued it would be nearly impossible in most states for your bank account to be levied in less than 4 weeks, assuming 20 days to respond to the summons, a default judgment, and a garnishment order on your bank account. That is the worst case.

I have no idea what your credit union is talking about. Unless you live in Delaware, bank account levys from a judgment creditor are extremely common - the lowest hanging fruit after a wage garnishment.

And while you can move your money around anytime you like, you cannot legally transfer your money to someone else or hide your money after a lawsuit has started. It's called fraudulent transfer. But the only way this would be detected is if you were asked to complete a written interrogatory or called in for a debtors exam, and you told the truth about where your assets, including cash on hand, was. You could be asked to provide all your bank account records including your check and debit card transaction records for the last year for example. If you withdrew a large amount of cash you would have to account for it. I hope you have a gambling problem at nearby casinos and lost all the cash at roulettte.

[ApresMoi]

So when does a lawsuit 'start'? If it's when a summons in served, then, no, there would not (technically) be enough time to remove my cash. There's not that much of it (cash), but without it, I won't be able to keep a roof over my head or eat. It's that simple.

Also, the more I talk to people (banks, even some attorneys), the more I realize how little people know. A Supervisor at the credit union seemed not to know whether unemployment funds were exempt, and in what amounts. In other words, they would probably blithely honor any garnishment directive, after which it would be up to me to prove the exemption in a court of law. At least they have my letter on file, but based on my conversations (and their seeming lack of knowledge), I am not at all confident the letter will do any good if it comes to that.

Thank you for clarifying about bank account garnishments, and how common they are. I said 'pure speculation' as I do not want to mislead anyone else in a similar situation who relies on advice in this forum. I now suspect the person who looked up the information at the credit union may not have known where to check for levies in their database. I have gotten more than one conflicting answer from them, so that would not surprise me.

And yes, I have a terrible gambling problem. Thank you for your concern. :-)

*****

AFTER you have been sued it would be nearly impossible in most states for your bank account to be levied in less than 4 weeks, assuming 20 days to respond to the summons, a default judgment, and a garnishment order on your bank account. That is the worst case.

I have no idea what your credit union is talking about. Unless you live in Delaware, bank account levys from a judgment creditor are extremely common - the lowest hanging fruit after a wage garnishment.

And while you can move your money around anytime you like, you cannot legally transfer your money to someone else or hide your money after a lawsuit has started. It's called fraudulent transfer. But the only way this would be detected is if you were asked to complete a written interrogatory or called in for a debtors exam, and you told the truth about where your assets, including cash on hand, was. You could be asked to provide all your bank account records including your check and debit card transaction records for the last year for example. If you withdrew a large amount of cash you would have to account for it. I hope you have a gambling problem at nearby casinos and lost all the cash at roulettte.

[ApresMoi]

The hilarious part is that there is not that much to move. I am in survival mode. I would hope creditors would have run a checking account balance check, and would know better than to waste their time going after nothing.

*****

after suing you and getting a judgment, the creditors will first try to levy on bank accounts they know about.

it's ok to move your money after being sued, but DO NOT wait until you get a notice to come in to court and report on your assets or a petition for garnishment. if you move money after that, you may be in violation of a court order.

[HHM]

See this post

http://www.bkforum.com/showthread.php?t=20104

[music12]

yes, banks do not CARE if your funds are exempt, they still go ahead and remove your money from your account. i had unemployment coming in direct deposited from the state, my bank statement says that it's unemployment, and i am still trying to get it back today. i called the bank to say it's exempt, they wouldn't even talk to me - they told me to get a court order. i went to court, the judge didn't care it was exempt (!!!!!). he said forget it. then i filed for bk. the bank still says get a court order to release the money. my next steps are unclear.

[ApresMoi]

Thanks HHM. I will review that link. I'm getting peeved at the law firm for taking so long, as the worry is taking its toll. I am at six months on non-pays. Recv'd a letter from a creditor recently stating they will write off the debt unless I contact them soon, and that I will still owe them, and that they considering all their options (veiled threat of a lawsuit). I am fully aware I could get sued any day, though I try not to think about it. I am just waiting on the firm to delivery the service for which I paid. I really do not want to deal with a summons.

Music, thanks for elaborating. That is exactly what I am worried about. I have no intentions of depositing this check now. I'll get money orders and prepay some bills for April.

It can't be that much longer before we file (another week max, I would hope) at which point i can breathe easier.

[ApresMoi]

Also, music12, that is so unfair.

[ApresMoi]

Maybe I am missing something here. But if you are summoned, then have X number of days before you have to go to court, why didn't you use the funds in the account for rent or mortgage, or prepaying bills? Are you saying the moment you were served the funds were on lockdown? That is what I am trying to get to the bottom of, as I have no intention of depositing any more checks (until after I file) if that is the case. Thanks.

****

yes, banks do not CARE if your funds are exempt, they still go ahead and remove your money from your account. i had unemployment coming in direct deposited from the state, my bank statement says that it's unemployment, and i am still trying to get it back today. i called the bank to say it's exempt, they wouldn't even talk to me - they told me to get a court order. i went to court, the judge didn't care it was exempt (!!!!!). he said forget it. then i filed for bk. the bank still says get a court order to release the money. my next steps are unclear.

[OutofTime]

Maybe I am missing something here. But if you are summoned, then have X number of days before you have to go to court, why didn't you use the funds in the account for rent or mortgage, or prepaying bills? Are you saying the moment you were served the funds were on lockdown? That is what I am trying to get to the bottom of, as I have no intention of depositing any more checks (until after I file) if that is the case. Thanks.

****

this would make sense if the bank who locked funds available is the same one they had their debt with due to cross lateralization. I'm getting sued by chase now but have an acct with us bank.

[ApresMoi]

Ok, looked at that, and it's a great summary of the process. Thank you! I can call the civil courts on Monday to see if my name comes up for any creditor complaints. I still am not clear whether I could continue paying my bills from checking if (AFTER) I am served (but before any court date or judgment). Do you know?

*************

So, what is the overall time-line

Day 1. Filing of complaint
Days 2-30, Complete Service of Process.
If service by publication, 30-60 days
Day 31-50, if no answer, and no SbP, Default Judgment
Day 40-60, if answer filed, Motion for Summary Judgement
Day 55-85 Hearing on MSJ
Day 90-180: Trial
Day 45-90, If no answer filed, but there was SbP Default Judgment Entered.

See this post
http://www.bkforum.com/showthread.php?t=20104

[WhatMoney]

I can call the civil courts on Monday to see if my name comes up for any creditor complaints. I still am not clear whether I could continue paying my bills from checking if (AFTER) I am served (but before any court date or judgment). Do you know?

A bank account levy is ONLY obtained AFTER you have a court judgment against you. Your bank account is safe UNTIL the judge signs the final judgment.

I gave the worst case timeline earlier:

1) You get a summons and have 20 days to file an answer.
2) You do not file an answer or appear for the hearing.
3) You get a default judgment.
4) The judgment creditor obtains a garnishment order from the court for your bank account. (Assuming they already know where you bank.)
5) The garnishment order is served on the bank by the sheriff or process server.
6) The bank freezes your funds in response to the court ordered garnishment order.

Steps 1-3 could take a little as 25 days.
Steps 4-6 could take as little as 2 days.

Hence, 4 about weeks minimum. Normally it is much longer because pre-trial hearings are not always scheduled the day after your summons response deadline. Judges often sign default judgments several days after a default heating, etc.