QUESTION
What happens if my bank account is frozen in California by and old credit card debt?
Asked on Mar 26th, 2013 on Debtor and Creditor - California
More details to this question:
I recently received a letter from a law firm representing a collection agency that bought a debt from an old credit card of mine. I'm not being sued yet. They simply want to hear from me. But if they do decide to pursue litigation I'm in fear of my bank account being frozen. I'm currently unemployed, so there are no wages to garnish. I do not own a home, I rent. My car is my only asset and is already completely paid for. But if they choose not to go after my car, will they freeze my bank account and should I remove all my money from the bank? Most of the time I have less than $1700 in my account at any given time. My bank account is in California, but I am also on my mom's bank account in case of emergencies and she is in Illinois under the same bank. Could they try to go after my mom's bank account just because my name is on it, even though I don't use it and it's in a different state? Trying to be prepared in the worst case scenario. Thank you so much!
1 ANSWER
Bankruptcy Attorney serving Burbank, CA
Partner at
Law Office of Mark J. Markus
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3 Awards
If they obtain a judgment against you, then they can seek all available collection remedies under applicable state law. In California that includes garnishing your wages and they can seek to seize funds in your bank account. This is not "freezing" your account; it is taking out whatever is in the account on a given date, so not leaving money in the account is a wise idea.
Yes, they could go after the money in your mother's account, assuming the perfected the judgment in Illinois, which would take a bit more work for them (in addition to them finding out it even exists).
Have you considered bankruptcy as an alternative to letting this creditor control your life like that? This is a good time to have a consultation with an experienced bankruptcy attorney to explore your options.
Mark Markus has been practicing exclusively bankruptcy law in California since 1991. He is a Certified Specialist in Bankruptcy Law by the State Bar of California Board of Legal Specialization, AV-Rated by martindale.com, and A+ rated by the Better Business Bureau. CONTACT MARK for more information or to schedule an appointment.
Answered on Mar 26th, 2013 at 4:58 PM