Question Hypothetical on banks ability to size cash

[Mik3]

Lets say that I may be filing in the next...months, and that I am about to default on a large loan. Can a bank size checking account assets without a court order, be it with that or any other bank?

[ccsjoe]

Banks usually have cross collateral language in their deposit and loan agreements, meaning they can seize assets in your deposit account with them to satisfy a delinquent credit with them. They can not, without a court order, levy or garnish accounts at other institutions.

[despritfreya]

Rule of thumb, do not bank where you owe money. The bank has the right to setoff. It can swipe your account held at that bank to cover a default on a debt owed to it.

The bank cannot take funds out of an account that is located at another bank without obtaining a judgment.

[Mik3]

Banks usually have cross collateral language in their deposit and loan agreements, meaning they can seize assets in your deposit account with them to satisfy a delinquent credit with them. They can not, without a court order, levy or garnish accounts at other institutions.

Thanks for the response!