Frozen bank account and debt collection
Your bank account can be frozen by debt collectors, as soon as collection agency obtains a judgment. Your funds can be seized outright or bank accounts get frozen. The law, in general, permits collectors to go after anyone who holds your money, e.g. garnish your wages and/or bank account, or after someone who owes you money. Anyone who owes you money, becomes the garnishee defendant and through the garnishment process, is forced to reveal to the court how much money they owe you. Through an order called a Writ of Garnishment, court will force the bank or your employer to pay a certain part of the money owed to you, into the court registry. Then, the court transfers the money over to a collection agency or whoever holds the judgment. Each state has a limit on garnishment amount, and only disposable earnings can be garnished from wages. So, frozen bank account often means bad news.
Mon Nov 10, 2008 10:11PM | Copyright: www.bad-credit-advisor.com | More in Relieving Debt | Comments (0)
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