If you’ve fallen behind on your debts and can’t catch up, creditors might threaten you with some terrifying penalties, including lawsuits, wage garnishment, and property seizure. In fact, unless you’ve spoken to an attorney and started the bankruptcy process, there are a variety of situations in which a creditor can take money directly out of your bank account. Knowing your rights and when creditors can seize your money can help you keep the resources you have.
After a Lawsuit Judgement
Before gaining the legal right to seize your bank accounts, creditors will have to go to court and receive a judgment against you. Once the court order is submitted to the bank, they’ll have the authority to drain your checking or any savings you might have put away. Most states allow you to exempt a certain amount of cash; in Ohio, the limit is only $400, which likely isn’t enough to cover your basic expenses. Unfortunately, many creditors win lawsuits because the debtor doesn’t show up to court, so it’s crucial to hire an attorney as soon as they take legal action.
When Your Debt & Accounts Are With the Same Bank
While most creditors need a court order to take money from your bank accounts, there are some exceptions. Most often, this happens when borrowers bank at the same financial institution that holds their delinquent account. For instance, if you have a savings account at the same bank that issued your car loan, most states give them the right to seize your assets without a court order. To be safe, most bankruptcy attorneys recommend changing banks if you think you might default on a loan held by your regular financial institution.
Financial problems can impact every area of your life, so you need help from an experienced attorney who can get you debt relief. With the help of Harry B. Zornow in Hamilton, OH, solvency is only a phone call away. Visit his website to learn more about his wide range of legal services, follow him on Facebook for more tips and advice, or call (513) 737-9770 to begin exploring your options today.