!st post on this great forum, need some advice

[brian1g]

Hello all, I'm new here and have found a wealth of information! I have a ton of questions but one question that I cannot seem to find the answer to involves judgment collections.

I am married and live in Texas where we have a lot of rights as judgment debtors. My wages can't be garnished but once my direct deposit hits the bank its free game. My employer strongly pushes direct deposit . I know a bank account freeze is incoming and the lawsuit was against only me (not my wife).

I currently have a checking account in my name, i'm on my wifes checking, and a savings account. I am wondering how I can protect my money (and my wifes) and not break any laws.

Can I close accounts and take names off of accounts even though I have a judgment and know a bank freeze / levy is on the way? The collection agency has checking account info from our joint checking.

Any help is appreciated.

[treehugger1]

Ouch, since they have some of your banking info. I would definitely close or reduce all funds in your bank accounts, joint or not.

Since it sounds as if your employer all but requires DD, you have the option of some debit or prepaid-debit accounts. For mainstreet debit accounts that allow direct deposit but do not run a credit check or chexsystem check, you can consider Bank of America cashpay, capitalone prepaid, or others. Google these for more info.

There are a multitude of prepaid debit companies out there: AccountNow, Readydebit, walmartmoneycard, netspend, etc. These have higher fees than the mainstreet bank pre-paid accounts, but they do offer some peace of mind.

There is always the argument about what you have to divulge in a possible debtor examination. Almost all prepaid cards explicitly state that the card does not constitute any kind of bank account, so if you were called into question related to divulging your banking information, you can use your own judgment. Being a least sophisticated consumer can have its advantages at times.

The above comments are just mine from thinking out loud. I'm not an attorney. I can only share what is clearly available for anyone with the time and willingness to do their own due diligence.

[WhatMoney]

Can I close accounts and take names off of accounts even though I have a judgment and know a bank freeze / levy is on the way? The collection agency has checking account info from our joint checking.

Yes, you have the right to close and change checking accounts after a judgment. Otherwise you are just a sitting duck. The worst that could happen is they call you in for a debtor's asset exam when they can't find your old accounts. They may ask you to list all deposit accounts and monthly statements you have had in the past year, open or closed. If they want to know where the money went, well you spent it. If you had any extra money after living expenses you'd have paid them, right?

You don't want your name on any accounts. You will need to close the joint account and have your wife open a new account in her name only. Make sure the bank actually closes all your accounts, and not just leave them inactive. I'd ask for a written confirmation the accounts are closed.

If you leave a bank account open with a low or no balance, and it is levied, the bank can still charge you a legal process fee, usually $100, and if that fee overdraws your account, then they get you for an overdraft fee too, usually $35. In addition, the bank can charge the judgment holder a search fee for looking for your empty account. In other words, the bank makes money and you and the judgment holder gets screwed.

Otherwise, what treehugger said.

[AngelinaCatHub]

Opening an new account since you are not evading or hiding assets due to your Texas laws on garnishment, but levy still exists, certainly draw down.

Close is not illegal but perhaps consider a revocable family Trust. They cannot sue or levy a third person and that is what a Trust is. It has not been sued and you as trustees have full control. Check out online and it is simple to draw one up legally without a lawyer. You must record it and open the account using the papers as the family trust. "The Smiths Family Trust" and that trust cannot be levied upon (legally). Your payroll can deposit to it in your name as anyone can deposit into your account but cannot withdraw.

You are in good shape, but time is of the essence. 'Hub

[brian1g]

Thanks for the great advice guys, i sure appreciate it!

I have a walmart money card and a cap1 prepaid in the mail as we speak. Closing all accounts on monday. Unfortunately my wife works at the bank we use so its an even more stressful than I have let on .

We are just trying to keep funds coming in so we have more options on how we handle this. No money = no options lol.

Thanks again for the advice, this forum has helped me greatly already. I don't wish anyone to endure financial hardship but its nice to be able to come together and give / get help from people with similar problems.

Thanks again!

[svoboda70]

I like the idea of these money cards, Cap One and Walmart, but can they have liens placed against them, or judgments for money owed to creditors? Would the creditor be able to locate the funds and place a lien or judgment or whatever it's called against your money on cards? I'm curious about this. I would like to have one of those cards, but I feel they are just like a checking account and could be located by a collector who is really diligent in looking for ways to collect. What do you think? Thanks in advance.

[ryan]

I like the idea of these money cards, Cap One and Walmart, but can they have liens placed against them, or judgments for money owed to creditors? Would the creditor be able to locate the funds and place a lien or judgment or whatever it's called against your money on cards?

This has been asked many times on this forum...no one has provided an absolute answer, and I don't think you'll get one.
If they can actually levy these cards is an open question, imo. First they need to find them, then do they meet the test of a 'bank account' and is not disclosing them a problem? I'd like to know, too.