Exempted Unemployment funds, Bank Acct Liens and Pre-Paid Visa

[doni49]

I'm starting to worry that at least some creditors will sue me soon. Of course that'll eventually result in a judgement. So I'm concerned that they will put a lien on my checking account into which I've been having my unemployment benefits direct deposited.

As long as the UE funds are in this account, I have proof that every cent in the account is from UE benefits and exempt under my eventual BK case. But because of the potential for a lien against the account, I'm considering moving my direct deposit & the funds from my checking acct over to a Walmart Money card (pre-paid Visa). What can I do to make sure these funds remain exempted under my BK case?

Also--a minor side issue: for some time, I've had my bills set up on automatic bill payment (where my CU issues checks to my billers not my billers initiating ACH withdrawals). I love the fact that I've got my bills on cruise control. Is there some way to do this using the WM card?

Thanks!

[doni49]

If I present statements from my checking account that show that I withdrew my money (UE benefits) from my checking account and that exact amount was put on a brand new pre-paid visa card, would they still be considered exempt as UE funds?

I'm now considering a GreenDot card and have read that they have no monthly fees (as long as there is direct deposit of more than $1000 per month), no fees for Bill Payment and no ATM fees (as long as you use an ATM in their network).

What makes this different from a checking account? Someone with a judgement can't force me to turn over this card too?

TIA!

[GoingDown]

In general, people worry far too much about this kind of stuff.

They don't even have a judgment against you yet, and you're so worried about this stuff.

Once they get a judgment, they will look for a checking account and seize that, and they look for your employer and then garnish your wages.

Pre-paid Visa debit cards are NOT checking accounts, so stop worrying about them.

The only way they would know about your pre-paid Visa is if you were stupid enough to tell them about it. So, unless you tell them about it, they won't know about it and therefore, no they won't ask you to turn it over to them.

They have the resources to hire a forensic accountant to pour over the minutia of every debtor's life looking for scraps. They just aren't going to do that.

With that being said, if they ever do sue you and then once they get a judgment against you, you should not keep any money in a regular checking account. At that point you should use pre-paid Visa debit cards.

Or just file BK and wipe out the judgment.

[bladerunner]

I know in Nevada and in quite of few other states, one is issued a debit card used only by the Unemployment office. I would call your legal clinic and just ask your question, because , if I remember right, sitting in the judgement proof legal aid class the attorney had mentioned that direct deposits in a bank or checking account become the property of the bank and that the funds are subject to collections, just a thought...good luck