Writ of Executions NC bank levy

[DinD]

Hey everyone. I currently reside in NC and have judgment against me from a citibank credit card. In NC there is a law that prevents wage garnishment for debt with the exception of backtaxes and child support. Anyway, I started working again a few months ago and had saved some money, and had about 4k in my checking account.

Yesterday I went to check my balance and it was empty. I was pretty upset since I thought they couldn't take my wages. Now there's a levy on my account and I literally have not a cent atm. I will call the sheriff's office tomorrow but needed some advice. Were my wages garnished because once the money was in my bank account it was so to say "fair game"?

Also is I get my checks directly deposited in a relative's account, can the sheriff go after that person's account?

Thank you

[ahall]

Nc bank levy

I wish I knew the answer to your question as I will be facing the same situation. How long did it take citibqnk to get to your money-were you warned first? I think if your information (ssnumber,name) are-- on the relatives account as a secondary person on the account then they probably can. W e were on my daughters account and we hqad her take us off beecause we ere afraid. Please let us know your time line-Wish you the best of luck --

[HHM]

As I understand it, in states like NC, TX etc, that don't allow direct wage garnishment, bank account levy's are okay.

The prohibition against wage garnishment means the creditors cannot send the levy to your employer and have your employer deduct a certain percentage of your wages for each paycheck. However, once those funds are deposited into a bank account, they become fair game.

Ultimately, the answer will depend specifically on NC law. For example, Colorado allows wage garnishment but provides an exemption for 75% of wages. So, if a creditor levies a bank account, but if the debtor can prove that all the funds in that levied bank account are wages, then the debtor can keep 75%.

I don't know NC law specifically, but there is potentially a legal distinction between the prohibition on wage garnishment and the amount of wages that are "exempt."

On a side note, why are you wasting all this time and energy trying to play games (put money in relatives accounts, etc), why not just solve the underlying debt issue. Since you have judgments, I can only assume you have been ignoring this for a while now...why not DO SOMETHING ABOUT IT.

[DinD]

Timeline

Hello,

I first defaulted on my citi credit card about 20 months ago. It seems like citi is relentless compared to others when it comes to debt collections. They have law firms that litigate for them. If I remember correctly they took me to court last summer, so 10 months after defaulting. Then it took about them until now to put a levy on my account *however I wasn't working during this time (until 3-4 months ago) and I had nothing to take. So it is possible that they waited for me to save a good chunk before emptying the account. From everything I've read, citi is the worst. gl to you and your family!

I'm so upset, it just seems so cruel to take a person's last cent in such a manner. If anyone knows about garnishment (my original post) and whether they indeed have the right to take everything out of my account, please post. I feel so helpless right now.

[DinD]

As I understand it, in states like NC, TX etc, that don't allow direct wage garnishment, bank account levy's are okay.

The prohibition against wage garnishment means the creditors cannot send the levy to your employer and have your employer deduct a certain percentage of your wages for each paycheck. However, once those funds are deposited into a bank account, they become fair game.

Ultimately, the answer will depend specifically on NC law. For example, Colorado allows wage garnishment but provides an exemption for 75% of wages. So, if a creditor levies a bank account, and the debtor can prove that all the funds in that levied bank account are wages, then the debtor can keep 75%.

I don't know NC law specifically, but there is potentially a legal distinction between the prohibition on wage garnishment and the amount of wages that are "exempt."

On a side note, why are you wasting all this time and energy trying to play games (put money in relatives accounts, etc), why not just solve the underlying debt issue. Since you have judgments, I can only assume you have been ignoring this for a while now...why not DO SOMETHING ABOUT IT.

Hello, thank you for the reply. The reason I didn't do anything about it is because I couldn't. Like I said, I was out of work since last august and just started working again 4 months ago. I had more important things to pay, things that allowed me to work- my car, my insurance, mortgage etc. I'm not justifying anything, obligations are obligations but not everything is always black and white. My debt was incurred because I tried to start a small business which failed and I tried very very hard to make it work. That's another story though. Thank you for taking the time to reply.

[DinD]

Just another sidenote

On a side note, why are you wasting all this time and energy trying to play games (put money in relatives accounts, etc), why not just solve the underlying debt issue. Since you have judgments, I can only assume you have been ignoring this for a while now...why not DO SOMETHING ABOUT IT.

The putting money in relative's account is because my car and phone payments are due tomorrow. I had set them up to be directly withdrawn from my bank account and it's the only way I could think of to pay them.

[HHM]

Don't take this the wrong way, but this is a problem that YOU created. Once you started working again, why didn't you head down to a BK attorney and get the ball rolling. You saved up $4K, you could have easily filed BK months ago. You knew you had debts, you knew you had judgments, it was only a matter of time before this happened. I cannot, nor will anyone else, be sympathetic in this situation. Your inaction has cost you $4,000, filing BK a few months ago would have only cost you maybe $1500-$2500.

As for what to do now, you need specific legal advice that can ONLY be provided by a lawyer licensed to practice in NC. Go meet with some. If there is a specific exemption in NC for wages, then you would need to go court (where you were sued by Citi) and claim that exemption.

[WhatMoney]

DinD,
I agree you need to talk to a NC attorney about possibly getting your $4000 back. You would need proof that all the money saved in that account was from your wages with a convincing money trail such as only direct deposit from your employer, for example. Even then, since it was savings, it may not be exempt. There is no specific exemption in NC judgment law for bank accounts with only earned wages. Please let us know what you find out. There is nothing specific on the Internet - just the advice you were given - ask an attorney.

This is the exemption reference for NC. It is confusing, especially the last part about 60 days of family support. This may only apply to hospital debt, but it's not clear to me.

North Carolina Wage Garnishment

and

.
The court or judge may order any property, whether subject or not to be sold under execution
(except the homestead and personal property exemptions of the judgment debtor), in the hands of
the judgment debtor or of any other person, or due to the judgment debtor, to be applied towards
the satisfaction of the judgment; except that the earnings of the debtor for his personal services,
at any time within 60 days next preceding the order, cannot be so applied when it appears, by the
debtor's affidavit or otherwise, that these earnings are necessary for the use of a family supported
wholly or partly by his labor. (C.C.P., s. 269; 1870-1, c. 245; Code, s. 493; Rev., s. 678; C.S., s.
721.)

[DinD]

I have sent an email to an attorney in NC and will hopefully hear from them tomorrow. I'm also planning on calling the sheriff's office tomorrow. Btw I also filled out my exemptions promptly after I got the Writ issued against me.

I will update tomorrow with what I can find out.

[lwh1961]

I have a judgment against me from AMEX. My attorney tells me not to worry about money in my bank account because it is a requirement in NC that you get a Claim of Exemption form to list your exemptions.

Did you not get one of those?

[catleg]

As an alternative, if you can't get the money back that was seized, then filing for bankruptcy within 90 days will turn that money into a preference and the creditor will have to pay it back to the trustee making it part of your BK estate, where you might get some of it back (if exemptions cover it) or it will be distributed to your other creditors. (which could benefit you if you have student loans).

[DinD]

[HHM]

Not sure why you would be dealing with the sheriff, to claim an exemption, you need to go to the court where you were sued. The sheriff is simply a tool of the process, they are not a decision maker.

Here is your potential problem, based on the language of the code provided, you can only exempt earnings that were earned within 60 days of the execution of the levy. So if ANY money in this account is older than that, it is fair game (by my reading).

[DinD]

Not sure why you would be dealing with the sheriff, to claim an exemption, you need to go to the court where you were sued. The sheriff is simply a tool of the process, they are not a decision maker.

Here is your potential problem, based on the language of the code provided, you can only exempt earnings that were earned within 60 days of the execution of the levy. So if ANY money in this account is older than that, it is fair game (by my reading).

Well, I called the sheriff's office because they were the ones who put a levy on my account. They don't make the laws, however if they executed the law improperly it is a problem. I too am afraid that they can say well, the money we took was actually what you made the first 8 weeks you started working. Which it is not since I had a lot of bills to pay when I first started working so technically the money in there was earned in the past 4-5 weeks.

I will post updates as they come.

[DinD]

I also wanted to apologize for turning this thread in my blog, but it is an easy way to keep notes and I hope this might be helpful to some.