How quick can they seize my checking account after a judgment?

[GoneBust]

I showed up in court on April 15th for a $20,000 Visa Platinum Business card that I stopped paying on about a year ago. The only options I was offered was to deny or accept the debt - so I denied it. I was given 30 days to pay $124.00 in court costs to fight the case. The 30 days is now past and I didn't pay the fees. I am guessing that means I will get a default judgment.

Here's my question: I am in Illinois - can this creditor immediately seize my checking account? If so, I am going to clear it out tomorrow.

[shark66]

Clear it out tomorrow.

Good luck.

[DYLAN150]

Yes, I would clear the account out, you'll sleep better.

[AngelinaCat]

I showed up in court on April 15th for a $20,000 Visa Platinum Business card that I stopped paying on about a year ago. The only options I was offered was to deny or accept the debt - so I denied it. I was given 30 days to pay $124.00 in court costs to fight the case. The 30 days is now past and I didn't pay the fees. I am guessing that means I will get a default judgment.

Here's my question: I am in Illinois - can this creditor immediately seize my checking account? If so, I am going to clear it out tomorrow.

No. Even if they file a default judgment against you, there are procedures that they must take before they can actually seize it, and it will take some time, probably several months, if you play it right.

Having said that, I would still take the money out, and purchase exempt items with it, like storeable food, and basic household commodities like soap, shampoos, toothpaste, toothbrushes, and toilet paper, etc. The money goes quicker than you think.

Good luck to you!

[HHM]

No. Even if they file a default judgment against you, there are procedures that they must take before they can actually seize it, and it will take some time, probably several months, if you play it right.

Having said that, I would still take the money out, and purchase exempt items with it, like storeable food, and basic household commodities like soap, shampoos, toothpaste, toothbrushes, and toilet paper, etc. The money goes quicker than you think.

Good luck to you!

Several months is a bit optimistic, try, several weeks at most.

Timing really depends on how on the ball the law firm is and the court procedures. But, assuming the process is relatively efficient, it only takes a few weeks to go from default judgment to garnishment.

Of course, timing also depends on whether they know where you bank.

[daylate]

So, a question I have wondered about is how do they know/find out where you bank? Obviously if you bank with them they know but if not how do they find out? Also if you change bank accounts after they find out does that help? Can you change after they have found out?

[IamOld]

So, a question I have wondered about is how do they know/find out where you bank? Obviously if you bank with them they know but if not how do they find out? Also if you change bank accounts after they find out does that help? Can you change after they have found out?

Maybe, daylate, we can ask this - if there is a debtor's exam, what is to stop you from opening an account in, say Delaware, AFTER the debtor's exam???

[HHM]

So, a question I have wondered about is how do they know/find out where you bank? Obviously if you bank with them they know but if not how do they find out? Also if you change bank accounts after they find out does that help? Can you change after they have found out?

Basic skip tracing can usually uncover a bank account, especially if you have been at that same bank for many years. If you change accounts, it becomes harder. Also, it depends in which state you live, for example, NY actually has a centralized database, but most states don't.

But yes, you can change banks.

The real issue is, how long are you going to play cat and mouse or are you going to actually solve the problem. Basically, if a creditor is at the point of judgment, I am not wholly sympathetic to the debtor because they have been overly procrastinating and mostly in denial about their financial situation.

[tobee43]

i know many times things can be tracked via one's ss..also if one has made any online payments at all with that banking account, make certain you notify THAT bank to stop all and future payments. we actually had to go in physically, since although we took all our info out of the site chase still snatched up a payment. we were lucky and got it back from the bank, but that always doesn't happen.

if you are that concern i would just pay my bills via money orders for a while and then find a small community bank, the smaller the better!! usually they get to know you and warn you, like ours did.

[help4mydebts]

Are credit unions harder/easier to find than bigger banks like Chase and BofA?

[GoneBust]

Basically, if a creditor is at the point of judgment, I am not wholly sympathetic to the debtor because they have been overly procrastinating and mostly in denial about their financial situation.

What if you're actually working to try to pay your bills instead of not paying them? Is that called procrastination and denial?

Some people obviously work themselves out of debt instead of going through bankruptcy, and that is what I have been trying to do for two years now. If my business sales don't increase over the next few months, I will have to file bankruptcy. But the sales have been increasing to the point where my income won't allow me to qualify for Chapter 7 anymore, and I dread the idea of being forced into Chapter 13.

[ValleYum]

Are credit unions harder/easier to find than bigger banks like Chase and BofA?

In my opinion, a lot depends on if the bank/credit union you choose uses ChexSystems.

If your new bank use ChexSystems to screen you, then the bank/credit union's inquiry will show up and I feel confident that any creditor worth their salt could easily find your new account. I would therefore try to concentrate on finding a bank/credit union that doesn't use them.

Good luck!

[HHM]

What if you're actually working to try to pay your bills instead of not paying them? Is that called procrastination and denial?

Some people obviously work themselves out of debt instead of going through bankruptcy, and that is what I have been trying to do for two years now. If my business sales don't increase over the next few months, I will have to file bankruptcy. But the sales have been increasing to the point where my income won't allow me to qualify for Chapter 7 anymore, and I dread the idea of being forced into Chapter 13.

I really wish you could step back and listen to yourself with an objective state of mind. The problem is, you didn't take action when you should have. Now you have creditors suing you, honestly, do you really think bankruptcy (whether 7 or 13) is worse...spend some time reading this forum, you will see the REALITY is very different.

[tobee43]

hhm point is very important here. after all you going though, for me, if it were me, i wouldn't give bk a second thought. i would just begin interviewing atty's...and get moving before it get more out of hand.

[DesdemonaB]

I showed up in court on April 15th for a $20,000 Visa Platinum Business card that I stopped paying on about a year ago. The only options I was offered was to deny or accept the debt - so I denied it. I was given 30 days to pay $124.00 in court costs to fight the case. The 30 days is now past and I didn't pay the fees. I am guessing that means I will get a default judgment.

Here's my question: I am in Illinois - can this creditor immediately seize my checking account? If so, I am going to clear it out tomorrow.

A quick Google search came up with the following: If there’s less than $4,000 in the account, you can claim it as “exempt,”, Illinois law gives all debtors what lawyers call a “wild card” exemption. It’s a wild card because you can use it to protect up to $4,000 worth of any personal property you choose—including money. You can therefore use your wild card exemption to protect up to $4,000 in bank accounts.

Note: You must make your written request to claim the exemption before the deadline set out in the court papers you should have received. Those papers are copies of either a “non-wage garnishment,” or a “third-party citation,” that were served on your bank. They require the bank to file something in the court case by the stated deadline, telling the judge whether they’re holding any of your money.

You will be served with a Citation to Discover Assets - This proceeding is used by your creditors to discover what sources of income or property you may have that can be used to pay off the judgment against you. You may be required to bring certain documents with you such as your tax returns, bank statements and pay stubs.

So it sounds as they can't take it immediately - as the Citation to Discover Assets requires a court appearance, if you fail to appear in court on the return date or if you fail to produce the documents that have been requested by your creditor, you can be arrested for contempt of court. Yikes!!

IMHO 20K is worth going after, and the SOL on a judgment in IL is 20 years. You should be receiving paperwork from the court very shortly, so now will be the time to seek some legal advice. Good luck with everything.