getting ready for funds being grabbed

[underwater59]

I got a question as far as I have maybe 50 dollars in a checking acct that could very well be taken soon I am thinking.Now for the question I have no real job but do get few hundred a month in form of check that I been cashing at the bank and not depositing. My question is if they happen to have the order of seizing acct at the time could they force that check into the acct or could I still get the cash?? or would I be better off going to a check cashing place and pay the fees?

[doni49]

Can't say for certain. But is it drawn on a local bank? Could you go to the bank upon which it is drawn?

[AngelinaCatHub]

If you are concerned about the fifty bucks, cash it out. As said previously use the bank it is drawn on. 'Hub

[GoingDown]

Yes, if it is a check from a local bank, just go stand in line at that bank and cash it.

If you leave that checking account open, you may lose more than just that last $50. The bank may charge fees for responding to a court order (such as a garnishment), and then your account may become overdrawn and they may charge fees for that as well.

As a rule of thumb, never leave more money in an account than you can afford to lose once someone files a lawsuit against you.

And that includes what you might lose if your account become overdrawn through bank fees.

Read the EXEMPT FUNDS stickie above for more information.

My fingers are getting tired from typing this stuff over and over again.

Maybe I've been on this forum too long.

[underwater59]

ok I understand the 50 dollers that can be grabbed along with extra fees etc.What I am asking is if I walk in the bank with paypal check in hand are they gona be able to snag it also?

[ValleYum]

What I am asking is if I walk in the bank with paypal check in hand are they gona be able to snag it also?

What everyone is saying is to go somewhere other than your bank of record to cash checks in order not to risk those funds.

[doni49]

uw: I think the reason you're not getting a direct answer to the Q as asked is that diff banks may handle that differently. Maybe you should go talk with the bank manager and explain your situation. Ask what their policy is on such a thing. Maybe even get him to put it in writing if he/she says they won't keep the funds. That way if and when you do try to cash a check, you can show the teller your letter from the mgr.

Keep in mind though--if you owe them money when you cash the check (like if your account is overdrawn due to those fees), they'll likely deduct what you owe them from the funds they give you for the check.

[GoingDown]

ok I understand the 50 dollers that can be grabbed along with extra fees etc.What I am asking is if I walk in the bank with paypal check in hand are they gona be able to snag it also?

Probably none of us have actually experienced this particular situation, so we would merely be guessing.

Talking to your bank about it would let you know for sure.

In my experience, if I walked into my bank with a check written on a different bank, and I only had 50 dollars in my account, they would only release 50 dollars of the check at that time to me, and make me wait a few days for the check to clear before they would give me the rest of it.

In essence, they ended up depositing the check to my checking account, waited until it cleared from the other bank, and then released the funds to me.

Hypothetically, if at the time I deposited that check to my checking account, a garnishment order had already been placed on my checking account, my guess is that they would seize those funds and give them to the judgment creditor, and charge me a nice big fee for responding to a court order. So the check from paypal would be gobbled up by the garnishment and the fees.

If you want to risk that, go ahead and try it.

[SweetGeorgia]

My bank (Wells Fargo) would totally seize the check if I walked in to cash it while a garnishment order was active. Don't know about the other ones, but I wouldn't chance it even if the manager swears you'll be fine.

Paypal does have debit cards, so you could get your cash from any ATM (there's a fee, of course).

[underwater59]

Thanks for the responces,and the last 2 posters that is exactly what I was trying to ask ,looks like it might be a check cashing place and pay the fees I guess.Far as paypal debit card I did look that up and from what I understood of it they run a credit check so I am thinking that is not a option?

[treehugger1]

It absolutely depends upon your state laws. In Oregon, a bank levy/garnishment is a one time thing. The bank can act upon the garnishment the day it is received. The very next day, the garnishment no longer exists, and the judgment creditor must start over. You might check Iowa's statutes.