How does a creditor find your bank account?

[jetsfan2010]

If a company knows where you work, but you never made any payments to them with your current bank account, can they get that info from your company?

[bcohen]

Once the creditor has a judgement, then can subpoena information from you, or from companies you have business dealings with--including utility companies, your apartment complex or mortgage company, or even your employer. The information which they can compel the companies to provide is copies of canceled checks you wrote to them, or in the case of the employer copies of canceled paychecks or direct deposit transaction records. This can be done even if the creditor is already garnishing your wages, or if you live in a state where wages cannot be garnished. From that information, they will find your bank account and proceed to seize your money. There will be NO ADVANCE WARNING that this is going to happen--the first notice you will receive is when your debit card gets declined or your rent/mortgage check bounces. So the time to plan ahead is now.

If you have a judgement, then my advice is to keep no more money in the bank than what you are willing to lose, or what your state's nonbankruptcy exemption amount is. In some states, as much as $1000 in a bank account is exempt from being seized, but in some states the amount is less than $200. For example, here in Arizona a judgement creditor can seize everything except $150, which would probably be gobbled up by bank fees for processing the levy anyways. Therefore, you should cash your paycheck, or if your employer requires direct deposit go to the bank and draw out the cash the same day that the payment posts to your account. You should keep the cash in your home and use money orders to pay your rent/mortgage, utility bills, etc.

[keepmine]

Not even that complicated. A blanket subponea to banks in your area will do the trick a lot quicker.

[IamOld]

Small state chartered banks in DE are another option, as DE prohibitis bank acct garnishments...just open the acct AFTER they want info from you.., BUT absolutely safety is I think is in bcohen's comments.

[jetsfan2010]

very good info. So the company has to get a judgement first? And of course you would get notified of when they attempt to get judgement on you via court date, right?

[IamOld]

YES, first there has to be a judgement, and then depending on state law, you have X days to go when the can get a garnishment. IN my glorious state it's 10 days. But then sometimes you can put in a notice of appeal and stall that way...in some other states it's way more than 10 days.

[bcohen]

very good info. So the company has to get a judgement first? And of course you would get notified of when they attempt to get judgement on you via court date, right?

Assuming that this is a consumer debt such as a credit card, personal loan, payday loan, vehicle or mortgage deficiency balance, etc. then this is correct. Creditors wishing to collect on these kinds of debts cannot garnish wages or levy a bank account until/unless they sue and are awarded a judgement. However, if the debt is a student loan, then the collection agency or guarantor agency does not need to file a lawsuit to go after your wages or bank accounts.

[IamOld]

Assuming that this is a consumer debt such as a credit card, personal loan, payday loan, vehicle or mortgage deficiency balance, etc. then this is correct. Creditors wishing to collect on these kinds of debts cannot garnish wages or levy a bank account until/unless they sue and are awarded a judgement. However, if the debt is a student loan, then the collection agency or guarantor agency does not need to file a lawsuit to go after your wages or bank accounts.

Absolutely right - thank you for clarifying!!!!!!!

[malf1204]

Every state is different. Here in Maryland after a judgement it is common for a creditor to request an oral examination under oath. They simply ask where all of your assets and money is. If you lie you are committing perjury(which can land you in prison for up to 10 years) and if you do not show up to the hearing the court will issue a body attachment and you will be arrested and your bond will be the amount that is owed to the creditor in cash.

[IamOld]

Every state is different. Here in Maryland after a judgement it is common for a creditor to request an oral examination under oath. They simply ask where all of your assets and money is. If you lie you are committing perjury(which can land you in prison for up to 10 years) and if you do not show up to the hearing the court will issue a body attachment and you will be arrested and your bond will be the amount that is owed to the creditor in cash.

Right!!!!! - and that is why you open your DE or other account AFTER you have such interrogatory - also 401k's etc are exempt. You're not committing perjury since you have not done anything yet. Period.


Of course again this shows you that corporate America owns the court system and even though you and I pay for its upkeep with our taxes they use it against us. THere is no way the little person would EVER have the same power over a "business." Sorry for the venting, but that's the way it is.

[jetsfan2010]

open your DE - what does that mean?

[ByeByeCCs]

jetsfan it means Delaware account, you cannot garnish a Delaware bank account.

[jetsfan2010]

jetsfan it means Delaware account, you cannot garnish a Delaware bank account.

thanks for the clarity byebye. Anyone have names of any banks chartered in DE?

[ByeByeCCs]

Jetsfan, on a hunch, based on your screen name I am going to presume you have ties to NY. NY passed EIPA two years ago and if your account falls below 1,716 it cannot be garnished. If you have exempt income deposited, (pension, SS, unemployment etc) then they cannot garnish if you have less than 2500. In addition, if you only have exempt funds in the account, you will get that money back after you file forms, except the bank can charge a fee for processing the legal papers. If you have less than the amounts listed the bank cannot charge you a fee for processing the writ of garnishment. Of course Delaware is the ultimate protection for those seeking to avoid garnishment. I should also note that is per account- so you could have 1715 in savings and 1715 in checking and both accounts would be protected.

[frogger]

It's not that difficult to find your new checking account. There are subscription based services available to appropriate companies that gather your data and resell it.

Everything about you is for sale....