Debt Collector Emptied Bank Account?

Question

A debt collector has a judgement against me. On Friday they totally emptied my bank account. I am getting an attorney on this, but in the meantime, does anyone know how often they are allowed to do this? Every day? Once a week? I am paying them off this week, but until then, what about any checks I have out there, and is there a way to put a stop on this?

Answer 1

Your question and additional details appear to be talking about two different items.

If a creditor has a judgment against you they can attach your bank accounts.  They can take up to the judgment amount, so any money that goes into that account until the debt is paid will go toward the judgment.  If you are paying them off this week.  Then depending on when your next Direct Deposit goes in, they may "take" additional money.  As it takes a few days for this attachment to be removed.  But you will get any overage back.

Any checks you have out depends on the bank.  The bank may pay the check, and charge you an overdraft fee.  Or they may return the check, at which time the company you wrote the check to will charge you a returned check fee.

As to your research, I could not find any regulation that limited the amount they could take out of a bank account.  I believe you are talking about Wage Garnishment.  With Wage Garnishment MI follows the Federal guidelines.  So they can only take up to 25% of your Gross pay if they take it directly from your paycheck.  However, once the money is in your bank account the entire amount becomes "fair game", and they can take anything in the account.

Answer 2

This weird, this is the second time I've heard of this.  I've never heard of them getting a judgement against someone and taken their money out of their account, I heard of them attaching your wages/garnishee but not taking your money out of your account.  How did they have access to your money, checking or saving account?   Did you give them this information previously, when you made a payment and then the use it again, without your permission?

I would  contact a lawyer, and I wouldn't pay them anything else, until you figure this thing out.  I would contact you bank to see what the best way to proceed with this matter.  Your main concern now is the other people that you have written checks to, not to the collector that might try to get more money out of this account.  You need to close this account, open another one, even if you open one at another bank, and pay the checks that you have out there now, and then let the lawyer take care of the rest.

Answer 3

The collector had a judgment and he attached your bank account.  He can come back again until the judgment is paid in full.  Pay off the judgment and that should stop it.

If you had outstanding checks, they will bounce unless you get money into the account to cover them.  You may want to contact anyone with a check and work something out to prevent the extra costs of NSF fees.

Answer 4

The judgment and a judgment lien allows the sweep of your account. Depending on the amount of the lien they may have a hold on your account for the full judgment and that will allow the bank to send any funds you deposit to the collection agency until the full judgment is paid.

Answer 5

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Answer 6

A debtor can freeze your bank account until the amount of what you owe is paid. I would actually suggest if you have a girlfriend or family member who you trust to pay your bills/transactions. Any new account you open will be able to be accessed by them. I would  have someone else do your banking for a while. This will stop them from taking your money. That's the best idea I can give you. That same thing happened to my wife, so I do everything on my own. It works. Pain in the butt, but you gotta do what you gotta do. Good luck with it. At least do this until your attorney can get something done. You may have to change your direct deposit if you have it into that account.

Answer 7

Judgements permit this with permission by a judge.

The bank would not release your funds without proper papers.

Your outstanding checks will likely bounce.

You'll have to pay the returned check fees, unless you can reach a settlement with your bank.

Unitl you pay off the debt, they can confiscate your bank funds as soon as posted.

With an attorney, you may be able to obtain a stay, but how long will that take?  IDK.

If you have a family member or close friend with a checking account, you could give them the cash and they can pay any of your bills with their check.

You could possibly pay them with a credit card.

Answer 8

I don't know the answer to your questions, same thing happened to me last week and we are still trying to figure it out. But, I wouldn't take the advice of people telling you to move your money or close the account unless you find your state laws on that. I have been reading that if they find out you do that, you can have charges brought against you for doing so. In my state, it is illegal to do anything to try and avoid repaying the judgement. Fraud. So, research the advice before you take it ...