Another Account Freezing Question...

[treehugger1]

here's the deal for many states. If you have money in a bank account, it can be attached by levy. While it may be protected as exempt under your state statutes, it may well be the case that you are responsible for making the argument that exempt money was incorrectly taken from you, Do you think the bank checks to see if the money in the account is "exempt?" Probably not. They get the levy and forward funds to the garnishor. It could be up to you to argue the exemption, after the fact! Just because SS, child support, pensions, etc are exempt from seizure under your state laws, doesn't mean the bank knows this. You might have to argue for the money to be returned after the fact!

Remember, you are the defendant and the creditor/CA is the plaintiff with a judgment. The banks respond to legal documents served on them. I don't think it is the bank's responsibility to check and see if, in your defense, the money cannot be taken. If you are afraid of bank garnishment/levy then keep your money out of the bank account.

I'm beginning to feel like BigBoy. Geesh, if you want to hang on to your money and have a judgment, then keep the cash under your mattress!

[floridian]

[QUOTE=2Bshinyandnew;264132]
Where did you read this, Floridian? Do you have a link?

i should have book marked it... he stated that once your SS in deposited, that under florida law it becomes an asset and is in jepardy of seizure.. he stated it was a loop hole in the way the law was worded in florida... im glad i have my checks in paper now... i only put enough in the bank to pay certain bills... maybe im a bit paranoid, as i havent been sued or anything....

[2Bshinyandnew]

here's the deal for many states. If you have money in a bank account, it can be attached by levy. While it may be protected as exempt under your state statutes, it may well be the case that you are responsible for making the argument that exempt money was incorrectly taken from you, Do you think the bank checks to see if the money in the account is "exempt?" Probably not. They get the levy and forward funds to the garnishor. It could be up to you to argue the exemption, after the fact! Just because SS, child support, pensions, etc are exempt from seizure under your state laws, doesn't mean the bank knows this. You might have to argue for the money to be returned after the fact!

Remember, you are the defendant and the creditor/CA is the plaintiff with a judgment. The banks respond to legal documents served on them. I don't think it is the bank's responsibility to check and see if, in your defense, the money cannot be taken. If you are afraid of bank garnishment/levy then keep your money out of the bank account.

I'm beginning to feel like BigBoy. Geesh, if you want to hang on to your money and have a judgment, then keep the cash under your mattress!

I knew that I would have to protect the money after the fact. The info Floridian posted suggested that funds I thought are exempt may not be exempt due to a loophole. I already knew I would have to "get back" these funds post judgment if a creditor ever managed to get a judgment AND levy this account (despite my watchful eye). The moment I see anything posted on my county clerk's webiste, BAM that money is moved. I should know about a lawsuit before I am ever served, unless the creditor can file in a county I don't live in, hence my vigilance and game plan in case that should happen.

The attorney made it sound like it would take a week or less to "unfreeze" or recollect funds that were levied from an exempt bank account. A PIA, yes, but for my future BK I also need to have a careful record of this exempt income (and expenses) and The First Bank of 2BShiny's Mattress is probably not going to make filing my bankruptcy petition easy when that time (finally!) comes.

d@mned if I do, d@mned if I don't.