judgement against me. can they overdraw my checking account??

[bleak]

had a judgement against me for 2800 or so.

they froze my checking account and empty the account (it had a few hundred dollars left).

now when i log into my account, it said im 700+ overdrawn.

can they actually do that?? i thought they can empty the account, can they actually draw out the entire amount and stick me with the reminder??

not sure if this matters, but on the same day they levi the account, i made a big withdraw and got most of my money out.

[ccsjoe]

Yes, they can overdraw the account. I had an IRS ACH overdraw my account, not the IRS's fault, but BofA's fault for allowing it. Account balance was almost $0 as I was finishing moving to new bank for filing BK, when I called BofA the answer as to why they put the charge through was "because we chose to allow this one" even though I had no funds....so I included the checking account in my filing!

[keepinitreal]

Yes, they can overdraw the account. I had an IRS ACH overdraw my account, not the IRS's fault, but BofA's fault for allowing it. Account balance was almost $0 as I was finishing moving to new bank for filing BK, when I called BofA the answer as to why they put the charge through was "because we chose to allow this one" even though I had no funds....so I included the checking account in my filing!

This works out nicely for you, having the balance you owe the IRS lowered while writing off the BofA overdrawn account in your bankruptcy.

[bleak]

another question if you don't mind.

when you moved to a new bank account, how safe is it from past/future judgement??

[wnguyen]

bleak, a silly question but, did you give them your bank info?

ccsjoe

They did the same thing to me last year, making the big overdrawn amount of $1200. The funny thing was they used my BOA checking account to pay for my BOA credit card account. WTF.

I wonder if I didn't sign up for overdraft protection, would they still overdraw?

[bleak]

i did not give them anything.

however, i have paid them before (before it ever got to judgement) from that checking account.

[LaurieM]

That concept... where they use your bank account to pay other debt you owe them - it's called right of offset and you would have signed something agreeing to it when you opened the account. It's actually very common.

[wnguyen]

Laurie

The BOA checking account had $50 in it and I had over $60K in credit card account with BOA. The minimum payment was $1250.