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Collectors finding your Bank Account


pulpfiction
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How exactly does a CA/JDB that has a judgement on you find your bank account?

Do they just contact every bank within an x mile radius of you?

Or is there some highly sophisticated procedure that I'm not aware of?

I live very close to the intersection of two other states (10 miles from one, 30 miles from the other.) How likely would it be that a collector would find a bank account located in either of those states?

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There are a few ways that this is done. Whoever holds the judgment will more likely proceed this way...

1. Subpoena the largest banks that are in your town seeking information about you and any possible accounts. (Ex. WF, BofA, WaMu) The bank will search its databases and respond. Keep in mind that the CA/JDB has the Court do this on their behalf.

2. Send subpoenas to every other bank or credit union in the area ( to every single one in the county you reside in).

#1 and #2 are fishing expeditions. Most people are caught by method #1.

3. Get transcripts of any 1099s filed by financial institutions on your behalf.

4. Check the credit reports and see if any banks have done a soft pull on your report.

This all takes time. If your accounts fit into #1 & #2, I'd either move them to another institution. However, if you do and the new bank pulls a credit report, the judgment will show up. So proceed carefully.

You can either open an account at a small community bank or a credit union. If you do that, you'd probably get a call letting you know about the subpoena. If you are feeling brave put $10 in the largest bank in your town and see if it gets garnished. If they don't garnish it in 1 year, then they probably are not serious about their judgment.

The easiest way to dodge this is to set up a business and put $$ in an account under the business EIN. Have a family member go and open the account and add you as an authorized signer.

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Thanks for the very detailed info, Unusualsuspect.

Questions..

Why exactly would a bank send one a 1099? Are these public record?

How about opening an account with one of those internet banks that only exist online (no brick&mortar locations)?

Seems like I should get any bank inquiries off my reports...Not that I'm going to allow a judgement against me, but just in case.

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Depending on how serious the judgment holder is, and what kind of loan contract you have, you may have signed a 1096 (Request for Tax Transcript) form allowing them access to your IRS tax returns. I had one bank try to slip that in on a car loan. They are always in on mortgage loans.

1099s are issued by banks for interest income earned over $10/year. They are not public record but they can be released if you authorize the IRS to do so (1096).

Internet banks are a good option. Bank of the Internet is one I'd consider using. Another method I am researching is using the cash accounts tied to brokerage firms. I have one account at Merrill and it seems to be untouched at this point. I am dodging 7 figure debt.

OCN is right-- just as long as you don't do anything to compromise the business account.

But as it is right now, I live in Mexico, one account is in Texas and the other is in CA. Neither has my SSN tied to it. The personal account is in a bank in Mexico.

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One more thing you might want to consider.. if you need a debit card. Paypal is great for this.. you can get a free debit card.. transfer money to that card and they cant touch it .. its almost like a pre-paid in a way.. but even if they wipe out your bank account the paypal card serves as a visa debit.. you have to transfer the funds from a bank account but once its in your paypal account it cant be touched and getting a debit card from them is very simple.. just get it online.. no credit checks.. just bank account verification

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One more thing you might want to consider.. if you need a debit card. Paypal is great for this.. you can get a free debit card.. transfer money to that card and they cant touch it .. its almost like a pre-paid in a way.. but even if they wipe out your bank account the paypal card serves as a visa debit.. you have to transfer the funds from a bank account but once its in your paypal account it cant be touched and getting a debit card from them is very simple.. just get it online.. no credit checks.. just bank account verification

I have one and they are great!!!! Easy to use, easy to get! Thats a great idea Carolina

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Money in an ING account would be safe as long as the $$ does not come out of an account your creditors know about. It's the same for Paypal. But I have been told that some creditors are beginning to send subpoenas to Paypal just in case you stash $$ there.

Just to be safe don't upgrade to the Paypal Money Mkt Account, since they will 1099 you for interest earned.

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Money in an ING account would be safe as long as the $$ does not come out of an account your creditors know about. It's the same for Paypal. But I have been told that some creditors are beginning to send subpoenas to Paypal just in case you stash $$ there.

Just to be safe don't upgrade to the Paypal Money Mkt Account, since they will 1099 you for interest earned.

this is only for the debit card... Paypal is pretty tight with info though.. I can't imagine them giving it up without alerting members.. they are not a bank after all

this money comes from a regular account and goes only to the debit card... not a regular paypal account.. but once its there it would be pretty hard to move. like a prepaid visa

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Soft Pulls are only viewable by consumer to best of my knowledge.A judgement creditor can pull full report and if you opened any additional accounts tied to bank,he will find it. I am not certain what permissible purpose is for authority to pull a full factual report. A full factual would show anything on there for the past 10 years along with inquiries.

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Let's not forget to list the OTHER method for finding your accounts - a subpoena to YOU for a debtor's exam ! It can be via interrogatories or court appearance, but you will be forced to reveal ALL of your bank accounts - no matter where they are, brick and mortar or internet based. If your name is joint on any account, they can reach it. They can even reach a business account - it's not that difficult to do apparently.

The bottom line is, you can't hide, not today, not if you want to use any form of banking.

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One more thing you might want to consider.. if you need a debit card. Paypal is great for this.. you can get a free debit card.. transfer money to that card and they cant touch it .. its almost like a pre-paid in a way.. but even if they wipe out your bank account the paypal card serves as a visa debit.. you have to transfer the funds from a bank account but once its in your paypal account it cant be touched and getting a debit card from them is very simple.. just get it online.. no credit checks.. just bank account verification

To add to this, I saw on TV a "golddot" visa card. It is a reloadable visa card (like a gift card). May be great for some people who want the convenience of plastic, but can't or don't want a CC or debit card. I don't know if you would be able to book a hotel or rental car with it, but it is worth looking into.

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Let's not forget to list the OTHER method for finding your accounts - a subpoena to YOU for a debtor's exam ! It can be via interrogatories or court appearance, but you will be forced to reveal ALL of your bank accounts - no matter where they are, brick and mortar or internet based. If your name is joint on any account, they can reach it. They can even reach a business account - it's not that difficult to do apparently.

The bottom line is, you can't hide, not today, not if you want to use any form of banking.

Answer all the questions truthfully, but close all the accounts the day you mail back the interrogatories. Then make them start the process all over again!! There is no law that says you can't change bank accounts at your own whim. If it really gets that bad, just cash your paycheck and keep the money at home. Pay your bills at the grocery store (for lights/gas/etc) mail money orders to the others. It is a pain in the a$$. You just have to weight the pros and cons of both.

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egold is another option if you want to protect your assets from prying eyes. And if gold increases in value you can watch the dollars in your account grow. The money is accessible with cash withdraws or debit card. No SS# needed.

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Hiding assets can get you in hot water.

True, but until a court tells me that it is frozen, or not to spend it, it's mine to dispose of as I see fit. Just close the account and keep it as cash. You can also take cash and spend it on exempt items if you feel you will be required to turn it over. Pay it toward you mortgage (esp. in TX and FL.) I would just tell the court I blew it all on cocaine and hookers, and no I did not get a receipt for services rendered!

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