how they discover accounts to levy

[IOIOIO]

I've read, for example, this:

http://www.associatedcontent.com/article/50931/collecting_california_judgments.html

so I expect they can easily levy the bank account I've used for 14 years. I opened an account at a different, small bank that I haven't used yet for any checks or electronic transactions. How likely is it, practically speaking, that a judgment holder could find such an account? I'd like to use it for debit card payments and to write rent checks. I don't want to, but I can go to money orders for the rent, but I'd really like to have the option of using a debit card for some things. I could fund the account with amounts I'm willing to risk losing --once!-- to a levy, but I wouldn't want to bother with this method at all if the chances of quick discovery and levy are too great.

I understand no checking account is safe from levy. I'd just like to find out what people have experienced so I can gauge how likely it is for this kind of account to go undetected by a collector holding a huge judgment against me.

[HHM]

And what is the reason you can't file BK?

[IOIOIO]

I can, but just doing nothing may continue to be easier, at least for a while.

[keepmine]

If the new bank account you opened generated an inquiry on your credit report, that's like leaving a trail of breadcrumbs.

[IOIOIO]

I didn't realize that. Do banks check your credit as a condition to giving you an account, or would a credit check only be for their marketing financial products to you?

[keepmine]

I didn't realize that. Do banks check your credit as a condition to giving you an account, or would a credit check only be for their marketing financial products to you?

Depends on the bank. What does the account paperwork say? Did you give them permission to pull your credit? Pull your reports and see if the bank is listed as an inquiry.

[GoingDown]

If you're worried about a judgment, then definitely start paying all of your bills such as utilities and rent, etc., with money orders. It's not as convenient, but at least you don't have to worry about your rent check bouncing due to a creditor seizing the account. Only put a relatively small amount of money in your checking account-- just enough to pay for whatever you plan on purchasing with your debit card, such as online purchases, etc. That way your risk is relatively low in the event that the judgment creditor seizes your checking account. Once they seize that account, don't put any more money into it or you will lose it. And of course, stop ALL direct deposits immediately. Get paper checks and cash them rather than depositing them.

Some people use pre-paid debit cards from Western Union, and some use pre-paid visa and mastercards, but they tend to be rather expensive because they have so many fees. If you live in an area with lots of banks, which I do, then it seems to be cheaper to just move from one bank to another bank.

When you apply for a new checking account, ask them if they do a "Hard" pull or a "Soft" pull of your credit. A hard pull is seen by everyone and is like ringing the dinner bell for creditors. A soft pull is seen only by you, although I have heard that some skiptracers and private investigators can even find soft pulls, so don't depend on this to keep your checking account safe. Instead, keep your money safe by puting only a small amount in your checking account at any one time. Remember if you can't afford to lose it, then you shouldn't be puting it into a checking account if you have a judgment against you.

[IOIOIO]

Thanks for that info, which I'm incorporating into my checklist. One related thing I'm curious about, but never got answered here: do they actually repeatedly levy the same bank account? Once they wipe it the first time, they know you know so how often do they expend their resources levying the same account? Obviously a discovered account is never "safe," but I'm just trying to get a sense of the calculated risk of continuing to use an account that's been levied.

[keepmine]

A wage garnishment and a bank account levy are 2 different animals. They can wipe out your bank account up to the total amount of the judgment.
Don't get too cute here. Once an account has a levy against it, leave it alone. State laws ay differ on how long a turn over order is in affect but why take a chance?

[IOIOIO]

I understand that the "don't take any risk" advice will always work. The other thread answered the question about garnishments, but not about levies. I'm not planning on taking unnecessary chances. I'm just trying to get a sense of all the options and their risks. Of course I understand a levied account can get wiped repeatedly. I'm just wondering if anyone knows anything based on experience with repeated levies on the same account. For example, right after being levied, it might be worth the risk to deposit a small amount so that I can pay the phone bill. The amount is small if the risk is small this could be a good option for me because the consequences are minimal: in this hypothetical scenario, the phone company is happy to receive a late payment in full in any form.

[HHM]

Generally speaking, hitting a bank account is a one time shot for creditors. Creditors have to prepare the documents, pay the sheriff, or other process server every time they want to levy the bank account. Although they can hit the same bank account multiple times, it is not a common practice, and in fact, levying against bank accounts isn't really used that much for consumer debts in the first place. Most creditors would rather go the extra effort to garnish wages.

[IOIOIO]

That's interesting to know. I should add that my bank enables cash deposits via ATM's, which I've used and trust. The amount is instantly available in the account. I'm thinking I can fund a transaction, then go online and do it within minutes. The money would only be in my account for the time it takes an electronic transfer to go through. The risk is greater with the rent because of the large amount and because I have to give the landlord a paper check, so the funds might sit in the account for 4-7 days.

[no_it_all]

I understand no checking account is safe from levy. I'd just like to find out what people have experienced so I can gauge how likely it is for this kind of account to go undetected by a collector holding a huge judgment against me

Well, finding accounts (the low hanging fruit) is about as hard as falling off a chair. All they have to do is serve you papers and request your presence in front of a judge. You raise your right hand with your left hand on a stack of bibles and he will ask you where your assets are. Takes about five minutes. Oh, you can lie, but when you get caught you go to jail. You get to disclose all your assets..accounts, furniture, cars, everything.

You can ignore the summons, but then the sheriff will show up at work and arrest you. Walk right in and if he is nice, he won't handcuff you or like with me, call you on the phone and let you know he is in the parking lot so you don't get too embarrassed.

Once he does that, he is required to bring you to court. Seriously, the plaintiff will arrange to have the judge ready and the sheriff will actually physically drag you into court. Then you get all these extra fees added!

My advice is to cut the legs off any potential judgments before they see the courtroom.

[IOIOIO]

You can ignore the summons, but then the sheriff will show up at work and arrest you.

Can I be arrested for defaulting on a civil judgment?

[HHM]

Can I be arrested for defaulting on a civil judgment?

No, you cannot be arrested for simply defaulting.

What no_it_all is referring to is a Judgment Creditors Exam. Basically, it is a deposition where the creditor calls the debtor as a witness and asks them about their assets. A creditor can only call a JCE after they have a judgment.

Because a JCE is issued via a court order, if the Debtor does not cooperate, fails to show, or otherwise, then the debtor can be held in contempt of court, hence, a warrant being issued and the sheriff being called in.