Ericc Posted May 19, 2019 Report Share Posted May 19, 2019 The company I work for is making me get direct deposit. I don't have a bank account because I'm afraid my creditors will freeze the funds. I was laid off about 9 years ago and my credit and my life were destroyed. I'm living paycheck to paycheck and I've rebuilt my credit quite a bit but still haven't recovered completely. If my paycheck was frozen it would be devastating. My question is if I created a business and opened a business checking account could I safely direct deposit paychecks from my job into that account without my creditors taking it? Quote Link to comment Share on other sites More sharing options...
Harry Seaward Posted May 19, 2019 Report Share Posted May 19, 2019 Possibly. I'm no tax expert, but this is potentially opening a huge can of worms as far as your taxes go. Your current employer would be paying your 'business' at an employee tax rate, and your 'business' would be paying you, possibly at a much higher 'self employment' rate. I'd talk to a tax professional before i did anything like this. It would be easier to set up a checking account with an online only bank (like Capital One, for example). It takes time and resources to locate bank accounts, and most judgment creditors only look for accounts at banks in your state. Have they gotten an order to levy your bank accounts yet? They have to do that before they can take anything from your accounts. Quote Link to comment Share on other sites More sharing options...
Clydesmom Posted May 19, 2019 Report Share Posted May 19, 2019 Do you have judgments against you or just old accounts? 1 hour ago, Ericc said: My question is if I created a business and opened a business checking account could I safely direct deposit paychecks from my job into that account without my creditors taking it? DO NOT do this. There are serious tax consequences to doing this and I am not entirely certain the money would be safe. I would suggest opening a pre-paid debit card to have the paycheck deposited to. You are worrying about the bank account specifically but NY allows creditors to garnish paychecks so if they were going to take your money they would do that before a bank levy. Quote Link to comment Share on other sites More sharing options...
Ericc Posted May 23, 2019 Author Report Share Posted May 23, 2019 Thank you both for your help. I didn't even think about the tax consequences. ... My paychecks are already being garnished. I was notified of 3 other creditors who are in line for garnishments. I was told that the creditors will pursue any bank accounts I have in addition to wage garnishment. My job cut all overtime so I was only able to pay a few of my creditors off. I will look into the online-only banking and also prepaid debit card options. I sincerely appreciate your help. Thank you for taking the time to help me out. God bless you both. Quote Link to comment Share on other sites More sharing options...
Clydesmom Posted May 23, 2019 Report Share Posted May 23, 2019 13 hours ago, Ericc said: My paychecks are already being garnished. I was notified of 3 other creditors who are in line for garnishments. I would head straight to a bankruptcy attorney or two and get a free consult. This may be a situation where it is much better to simply wipe it all out and start over. Quote Link to comment Share on other sites More sharing options...
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