can debt collectors take money right out of your bank account?
by admin ~ February 15th, 2008 . Filed under: Personal Finance .
tkay asked:
I want to open a bank account to save and manage my money but my boyfriend says that if I do the debt collectors can take money out without notification.is that true?
If they get a judgement will I be able to get my money out before they can take it?
Kimberlie Renneker
I want to open a bank account to save and manage my money but my boyfriend says that if I do the debt collectors can take money out without notification.is that true?
If they get a judgement will I be able to get my money out before they can take it?
Kimberlie Renneker
February 16th, 2008 at 9:47 pm
No, it is not.
They would need to go to court and get a judgment against you before they could do that.
February 20th, 2008 at 12:00 am
If they have a judgement, they sure can.
SOLUTION: Pay off you debt that YOU owe. If you can save, morally you should pay off debt first.
February 21st, 2008 at 10:15 pm
With you permission, ofcourse.
February 24th, 2008 at 4:43 pm
If you have a consumer loan and you default and you have a checking/saving or cd, they do have the right to take it. That’s why you should never have your checking acct/savings where the loan is.
February 25th, 2008 at 7:44 pm
They can only take money out of your account if you agree to them taking either a one time payment or monthly payments of a certain amount or if judge issues a garnishment for your account on their behalf.
You owe the debt so pay it off and then start saving!
February 27th, 2008 at 12:11 pm
Hi,
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February 29th, 2008 at 6:31 am
Yes they must obtain a judgement first,,,,,,,,another words serve you with a summons and have a court determine whether or not this is a just and legal debt. Now you would have time to close the acct. if they played it fair and square. However some process servers will sign a summons affidavit that they served you, most states, if you are not home allow them to tape it to your door, if you are not home the third time they go to your address, and that is considered served. Some process servers are completely corrupt, just sign it say they served you.
Some localities require service by sheriffs office, or court personnel , lessening the chance of your being “sewer served”, but you’d probably be ok till, and unless a legal judgement is filed against you. They have to be pretty much after you though to go after you that far. However the credit and collection industry has changed so much in the last ten years, debts, that after a few years were just left on credit bureaus till 7 year limit, then erased, are being sold over and over, almost every six months, it is even hard to keep up with who you owe, you must hold on to all collection lttrs, most people throw them away.
Student loans need not to go to court. If they find out where you have money, slam acct. frozen and gone, no messing w/student loans, the govt. backed loans don’t need court judgements, so I hope you are not talking about stu. loan debt.
If they are in the hands of collection agencies though, it might be a good idea to straighten out your credit, make settlements, they will usually take 25-50 per cent and call it even. Learn how though must get a letter up front an amount is acceptable, as paid in full before remitting. Sometimes you can get a complete deletion with a settlement, having them delete the debt from cr bur, in writing, before remitting. There is tax on the money saved a 1099 required , but agencies often don’t send them out, but if you settle on the bank level you will get one , and pay tax on the difference of the amt. saved, usually your tax bracket amt, most people 15%. Be wary of settlement companies, if they want fees up front, learn, and get educated you are dealing with one of the most important parts of adult life.
Credit reporting agencies have immense power over our lives, and I just wish a new one would come along that would take in to acct. sickness (if substantiated) bouts of unemployment. Now the only thing considered……paid, on time, period.
Learn , get educated,,,,,,,,,,,,,,,QUICK!!!