Can my checking account be garnished IF...

[ImaBird]

Can my checking account be garnished if it is actually my husband's account, and I am just a secondary user?

[jq26]

Is your name on the the title at all? If it is not titled as your property then you are okay.

[ImaBird]

I'm not sure. My name is on the checks, and I have a check card with my name on it... I'll find out...

Thanks.

[-eventy-ix]

Yes... you are a Joint Other (it sounds like) which means you are part owner of the account and its funds.

[ImaBird]

...not that I expect anything in the money biz to be fair, but...

...it doesn't seem right that if all the money in that account was earned by my husband, that they could freeze it and remove funds just because my name is on it...

[Debt Guy]

...it doesn't seem right that if all the money in that account was earned by my husband, that they could freeze it and remove funds just because my name is on it...

It is not a question of right or wrong. Under most state law, funds in a bank account are subject to levy against any person who has the ability to withdraw funds from the account.

If you are concerned that one of your creditors might levy the account, then remove your name from the account. The bank may not allow that sort of change. If not, the only answer is to close the account and open another one without your name.

Sorry for the bad news. That is the way it works.

[new mom]

... Under most state law, funds in a bank account are subject to levy against any person who has the ability to withdraw funds from the account.

Do they just automatically go into your acct or they have to notify you before its done

[jq26]

They just go in. This prevents you from making a withdrawal and screwing them. You will be notified (usually), but not in time to prevent it. They cast a net over a period of time on your account and can catch any funds deposited too, such as direct deposit from an employer.

In a way, it is fair. The law assumes that since it has been adjudicated, then then the claim is legitimate. If you have title to the property (money in this case), even if your husband earned it, then they take it to pay down your debt.

Knowing this, you can change this before they do just what was described above.

[ImaBird]

Well, I already have the judgment...

...is it unheard of for CAs to settle for less and/or negotiate on a judgment? I just need to get rid of this thing!

[jq26]

Maybe you can work with them. Search the debt settlement section. I woudl think they may hold firm because they spent the time & effort already to get the judgment, and the avoidance of that is a good reason for them to settle. Give it a shot, and if they agree, get it in writing.

[ImaBird]

My plan is to take my name off of my husband's account, and deposit all of my money in an account opened under an EIN#... or not at all...

THEN, I'll try to settle with them.

It's been a year, and they haven't found me yet... and I haven't even been hiding!!! Should I wait it out longer, or go ahead and try it? Where should I start? $0.25 on the dollar? More or less?

[jq26]

That is up to you. I didn't even try to negotiate with my creditors. Just filed BK7 on them one day and discharged all of it. They received 0 cents on the dollar. That was before the new BK laws went into effect.

Good luck.

[Debt Guy]

and deposit all of my money in an account opened under an EIN#...

I'm not sure that will work. EINs belong to corporations.

Why don't you just put your money in your husband's account? It is hard to cash a check or use a debit card but you can use an ATM card in his name.

They may or may not be "looking" for you. In my experience, the levy comes when it is least expected.

Yes, you can negotiate a judgment. It is more difficult than negotiating a pre-judgment debt and is more expensive since the creditor has a lot more money and effort invested. Judgments last a really long time -- generally 10 years and can usually be renewed for an additional ten. That gives the creditor a lot of leverage over a long period of time.

Does your state allow wage garnishments?

Commonly, the creditor will schedule an asset hearing -- which can be done in person or by mail. You must answer that order -- failure to do so could result in the judge issuing an arrest warrant. The warrant has nothing to do with the debt per se but is the penalty for ignoring an order of the court.

[ImaBird]

I'm not sure that will work. EINs belong to corporations.

I have an EIN for a sole proprietorship under my name.

Does your state allow wage garnishments?

Wage garnishment is legal where I'm from; however, the the judgment exempted personal earnings. Here is how it was stated:

"You are hereby notified that this court has issued an order in the above case in favor of Palisades Collection, LLC, the judgment creditor in this proceeding, directing that some of your money, property, or credits, other than personal earnings, now in possession of JP Morgan Chase Bank NA-Bank One, the garnishee in this proceeding, be used to satisfy your debt to the judgment creditor."

Of course, I don't see how that works. They don't have permission to garnish my wages, but if I place my wages with this bank, then my personal earnings can be taken? Whatever.

Commonly, the creditor will schedule an asset hearing -- which can be done in person or by mail. You must answer that order -- failure to do so could result in the judge issuing an arrest warrant. The warrant has nothing to do with the debt per se but is the penalty for ignoring an order of the court.

It's been over a year, and my presence has not been requested to attend an asset hearing, and if I do, they will be shocked (or maybe not) to learn that I own nothing but a car that's worth maybe $1,500.

It is my understanding, at least in Ohio, that the court will not assist in collecting on the debt, and that my not cooperating is not, in fact, ignoring and order of the court...

Yes, you can negotiate a judgment. It is more difficult than negotiating a pre-judgment debt and is more expensive since the creditor has a lot more money and effort invested. Judgments last a really long time -- generally 10 years and can usually be renewed for an additional ten. That gives the creditor a lot of leverage over a long period of time.

In Ohio, the SOL on judgment is 21 years, renewable every 5 years. Should I begin negotiating now, or later? How far do you think I can get with them after a year of not collecting?

[Guest helpuout]

tough question, but should be easily answrd by competent attrny w/a computer, tough only because it depends on whether, or not community property law state. If community property, both you and husband are often linked together in debts, and assets. Some states don't have those laws, in name only. Presuming there is a judgement inquire if settlement available.

Big secret of settlements in credit industry is deletion. If you settele for 35-50 % cr bur will show 0 bal and SIF. Some creditors, for a high settlement amount, say 75% will delete the account completely, really increasing cr score will be as if you never had the negative account in the first place, but get it in writing first from whomever you are settling with. Hope this helps, other sources, National Foundation For Credit counseling, www.nfcc.org the National leader for non profits, and e book, short pamphlet, www.answersfordebt.com

[Guest helpuout]

Sure are, maybe get a better deal than w/creditor, if it is purchased debt and Chase sells its cr crd debt last I knew, not a "farmer" for a 1/3 fee. Thing is they usually won't report to cr. bur. get letter on amt. up front, and also when settled you will have to send letters to cr bur. Taxes are applicable, depends though when you settle w/bank, always will comply you will get 1099, but depends on income, children, etc., settlement still worth it. Collection agencies are violators in regard to 1099's they usually don't report them, and also won't report that you settled, that is why letter so important, you'll have to report yourself. Note my other post if you want to increase cr score settle high and insist on a deletion, else yes start at 20% scream poverty, probably will wind up settling for 35-to 50% which is typical, but remember letter b4 sending pmt, and letter after.

I know someone took HSBC's verbal word on a settlement, and pop, charged off, and the other 50% was in the hands of a collection agency, old trick verbal settlement. Never expected it from a bank though, usually collection agencies use this tactic, then tell you, "oh that was last month".

Again community property state? The wording, as I post this was not the usual wording on a checking account lien, it said something about "your", definitely, good resources, National Foundation For Credit Counseling www.nfcc.org and e book www.answersfordebt.com

One other thing. Factoring, purchasing of debt is one of the fastest growing businesses in the U.S., and w/todays economy being conveniently (jobs) sent overseas many of us see your situation down the road. Educate oneself as much as possible, hard times they are a comin, little reported fact, banks just took another 70 billion dollars from the Fed again, last Thursday. Ten per cent of cr cards cancelled by several banks includin Cap One and Barclays bank in last week. Of course powers that be sure don't want this info on P. 1 of the N.Y. Times, always buried in a tiny article somewhere, or an insider gives info on internet.

Godspeed

[Guest helpuout]

That is what I noticed, that is strange wording for a lien. Check out the validity of the lien first, b4 settling. Also an attorney can give them big hassle if you were not served properly, and open the judgement, costly though.