Any advice to protect myself from bank account seizure?

[Coachway]

Backstory.... Debt accumulated in VA.  Divorced dad.  Unemployed from late 2008 to early 2010.  Wages earned in 2010 to 2014 were low (less than 40k a year)  Led to failed marriage,etc.  After divorce, I moved to NC for a better job.  Garnishment in place that covers child support and spousal support.  Covers the full 50% of post tax income, and I still need to send approx. 150 a month additional to DCS afterwards.

 

I received a judgement in 2010 for a credit card debt over 8k.  This was from trying to pay bills during unemployment with CC.  Credit card turned it to the law firm, who sued. 

 

Received a garnishment letter (indirectly - they served it to my old address with ex wife, even though my address updated with the courts) earlier this summer.  Court date is in October.   I currently reside in NC.

 

I've been given mixed information on how to proceed....

I've been told that since the max allowable garnishable amount is being withdrawn due to the CS/SS, that I the law firm likely won't receive anything additional and I should just contact them directly to try and "settle for less than full amount."

 

But in researching here and other sites, it sounds like once they're awarded the garnishment, they'll be able to immediately sieze my bank account.

 

Even with the better job, because of the in place garnishment, I'm still the model of paycheck to paycheck living.  So having my bank accounts seized at any point would be (not to be dramatic) potentially devastating.

 

All my credit black eyes are from 2008-2009, and I'm trying to rebuild, so I don't want to go the bankruptcy route. 

 

Thank you for reading, and sorry if this was long winded.  Any advice is appreciated.

 

As is, I'm considering withdrawing what little funds I need in my checking account, while leaving a small amount in.  Doing money orders etc to pay bills.  Hopefully there's a better option.

[Clydesmom]

First get the money out of the bank and live unbanked for the immediate future.  Use a prepaid debit card to pay bills or money orders.  

 

I would make a settlement offer of $1000 or so to them (you would need to pay this immediately if they accept) if you can do it.  I would send a letter in writing stating that due to child support garnishment your wages are not subject to civil garnishment for however many more years until the kid is 18 or older and that they will collect nothing.  

 

You do need to respond to the court with the garnishment order because it is the wrong state.  Let them know it is the wrong jurisdiction and the court cannot hear the issue.  If you don't respond they can hold you in contempt and have you arrested when you don't show for the hearing. 

[Coachway]

The judgement was filed in VA.  They're suing me through the same jurisdiction for the garnishment order.  Even though the judgement is in VA, they can't do that?  Is that how I understand?

 

Would I just call the courts and let them know this?

[Clydesmom]

They have to domesticate the judgment in NC to collect and garnish there.  The know this and are trying to skirt the law.  You cannot just call the court.  You have to file the appropriate motion with the court.  

 

The other thing to know if the motion isn't successful.  VA allows for a one time $5000 Homestead exemption on debt which protects cash assets as well as homes, cars etc.  I used it when Cap1 garnished me on a judgment eons ago and got all my wages back.  They collected NOTHING.  If the court won't stop the garnishment I would use that Homestead exemption.   It is a simple form to file with the court and get it.  The Judge has to stamp it they cannot stop it.

[Coachway]

I made the 5 hour drive and visited the courthouse today.  Spoke to a clerk and she said it didn't matter where the garnishment summons was sent.  That I didn't need to be present for the hearing.  And that since their was a judgement in place, all that was going to happen is whatever money that was garnished from me (nothing to date due to the current in place garnishment) would be handed to the collection agency.  But since nothing was collected, that the judge will likely dismiss the garnishment.  Also said the CA could have seized my bank account at any point to date.

 

She said there was no motion I needed to file or anything.  Basically nothing I could do outside of pulling what little funds I have out of the bank (just in case) and contacting the CA to try and settle.