Bank holds- how do they/will they find a new account?

[mattman10987]

First, thanks for such a great resource! I have searched the forums and so far haven't found the answer to my question, I hope I didn't miss it somewhere.

I'm thinking I may be able to avoid filing for bankruptcy, after years of hiding, ducking, avoiding (and completing alcohol rehab- 2 years sober now) I'm beginning to assess my financial picture. This morning I reviewed my free credit reports and the picture is not as bleak as I had feared.

In 2006 I had a default judgment and a hold placed on my checking account. I never used that account again, and it is now closed due to inactivity (confirmed by the bank).

In 2007 I had another default judgment, and a hold on new checking account, that account is now closed due to inactivity (also verified by the bank).

I'm about to accept an offer and return to work for the first time since mid 2007, and want to make sure that any money I make doesn't begin to disappear again before I have a chance to begin fixing things, so my quesiton is this:

These 2 judgments were never satisfied. If I open a new checking account will these two judgments find their way to my new account? Many employers these days insist on direct deposit, I'm worried that my pay (which I will need for daily living expenses, of course) will begin sinking into a black hole and I will be unable to meet my current expenses before being able to address old obligations. I think that once I get a deposit for an apartment and a few months cash saved up I will be able to make payments on the old debt (the IRS is another matter entirely, and I know where I stand with them)

I have zero money now so I cannot afford a lawyer or credit counselor to ask these questions, and local legal aid considers this a consumer matter so I don't qualify for free legal advice. If anyone has any helpful information, links, etc. I would be extremely grateful.

Thank you!

Matt
(I live in New York State, if that matters)

[Flamingo]

Not only could they find their way to a new account they could find your way to your employer. They have your SS#. I can only suggest requesting a paper check from your employer (they cannot deny you that - most do insist on direct deposit because it is cheaper and easier for them to do that). It may take you longer to receive a paper check from them. However, if they can obtain an order to garnish your wages, even a paper check can't help you.

You may have some attorneys in your area that do pro bono work for filing BK. Call your State Bar Association (in your phone book under your "state" section or could also be under "lawyers"). They can possibly help you find one. Best of luck to you.

[BobMango]

You're doing yourself a disservice by continuing to think along these lines. Why keep the stress of trying to stay one step ahead? After completing rehab, you have to know that facing up to your prior shortcomings is a big part of your future success.

If you think the new job will allow you to pay off those judgments, why not call them up and see if you can work out a payment arrangement? If they are unwilling to work something out you can always file bankruptcy. That will provide you with the clean start you need in your financial life to go along with your other "fresh start". Then you can focus your mental energy on being a model employee, citizen, what have you, without trying to duck out on problems from your past life.

Not preaching, just giving it to you straight. Good luck.

[Bell30656]

The bank can find your new account by either running a credit check or Chex System check. Then they will find almost every check order you've ever placed and any bank accounts that you opened.

[Dst1]

The real question is whether or not they are still looking. Could they *possibly* find your new checking account. Sure, anything is possible. But if you haven't heard from them in two years your account with them is probably dormant.

Same with your employer. How are they going to find out about that unless you tell someone besides the IRS (which they can't get access to). Who cares if they have your SS#. It's irrelevant because your new employer will not show up on your credit report unless you apply for new credit. Yes, they could have a private detective follow you around but unless the amount you owe are huge forget it.

The point that I am making is that there is a huge difference between what is possible in theory and what actually happens in practice. In short, my own answer to your question is that it's not likely to happen. Certainly it's very unlikely to happen before you saved up for enough cash for a BK.

[mattman10987]

Thank you everyone

Thanks everyone for your great information and insights.

I'd like to clarify that it is not my intention to duck my obligations any longer, but there will be some short period of time during which I can't afford to have my money disappear again, namely my first few rent payments, car insurance, phone bills, etc.

This potential job offer came out of the blue, and there will be a very narrow window between when the money starts coming in again and when it is going to have to start going back out to meet my basic living needs. Up until now I had nothing to offer the creditors because I hadn't worked in so long, and if I tip my hand too early they may begin attaching my wages before I am ready to initiate a payment plan.

I agree that it is unlikely that they will start looking for me so long after the last efforts three and four years ago, but I can't be too careful.

I am currently using a NetSpend debit account, and they have no SS info on me and my address is different than the one my credit record reflects, so I hope that account is "safe". I would really suck if I present the card to pay for a rental car on my first business trip for the new company and it is declined because, once again, "they" found my funds (in this case, it won't even be my money, but advances from my employer).

Anyway, I digress. I appreciate everyone's help!

Matt

[catleg]

Open an account with an online bank, out of state. They're unlikely to find it there. ING direct, e trade bank, just to name a few.

[frogger]

I agree that it is unlikely that they will start looking for me so long after the last efforts three and four years ago, but I can't be too careful.

Matt

First of all, congratulations for getting your life back together.

Now, the statement in quotes....... 3 and 4 years ago? I don't know where you are, but the statute of limitations may have run out. If so, things have changed in your favor.

[LadyInTheRed]

First of all, congratulations for getting your life back together.

Now, the statement in quotes....... 3 and 4 years ago? I don't know where you are, but the statute of limitations may have run out. If so, things have changed in your favor.

The OP has 2 judgments against him. According to a lawfirm website I just found, a judgment is good for 20 years in NY and accrues 9% per year in interest.

[frogger]

The OP has 2 judgments against him. According to a lawfirm website I just found, a judgment is good for 20 years in NY and accrues 9% per year in interest.

Thanks Lady! I was blind to that in the post. In our area, judgements are good for 7 years and can be renewed for 7 more. Once they start getting some age on them, they are not pursued as aggressively, but they are always still judgements.

[BigJohn]

Your credit is ruined so you might as well pull the plug - file bankruptcy - and really start all over.

[catleg]

I agree with John, get the Nolo book , file the papers get the fresh start.

[warren49]

If direct deposit is an issue, consider a prepaid VISA/MASTERCARD account with an out of state bank. They are very easy to set up. Many waive/refund service charges if you use direct deposit. What you get is a VISA or MASTERCARD debit card, so it is also is ATM card. You can pay bills online, including bills that require paper checks (although it takes about 10 days for a check to be sent). To set it up, the providing bank sends you an account number and a facsimile canceled check, if your employer needs that. You can find these cards on the Internet. If you want a link, send me a private message.

I am on Social Security disability and I use one to receive my payments.