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.
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How does that limit work with folks who reside in one state, but the bank is registered (or chartered or whatever) in another? -
JackBondLove-in order for a creditor with a judgment to go after your bank account in another state they would have to domesticate the judgment in your residential state in the state where the bank is located. Once domesticated, it is the rules where the bank is located whose garnishment laws apply.Comment
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