Bank account freeze

[cleanmom]

What is the name of your state? NY

We had a default judgment against us and recently we received a letter from our banks that there is a hold placed due to a court ordered Restraining Notice. Our income tax check is due to be deposited in two weeks. Can the creditor take all of that? Is there a limit to how much they can take? We would like to make arrangements to pay monthly and give them part of the tax refund. Should we just let them garnish my husbands wages instead? I don't know what to do?? I want to make this right, but I don't want to go broke in the process. We do have other bills to get caught up. Also, my husband is in the Navy Reserves. Does that protect us in any way? Thanks for ANY help you can give. I've been searching and searching trying to get answers.

 

[bigun]

Has your husbands unit been activated?

 

[cleanmom]

No, he has not been activated yet.

 

[bigun]

Sorry, he has no protections. Any money that hits that account will be frozen
You need to contact the lawyer for the creditor and see if something can be worked out.

 

[JETX]

"Can the creditor take all of that?"
*** Very likely, yes. See below.

"Is there a limit to how much they can take?"
*** Yes. The maximum that they can take is the full current value of the judgment. This is the original judgment amount, plus costs, plus interest.

"We would like to make arrangements to pay monthly and give them part of the tax refund. Should we just let them garnish my husbands wages instead?"
*** That is up to you and depends on your current financial situation...

"Also, my husband is in the Navy Reserves. Does that protect us in any way?"
*** No.

 

[cleanmom]

Thank you. Another question; if try to set up arrangement with lawyer, do we need to get it in writing before we send the money? I am afraid that we will send them money and then they go ahead and take our money from our bank account anyway. My biggest fear is being left with nothing to pay our mortgage, insurance, etc.

 

[JETX]

If you manage to negotiate ANY settlement, be sure to get it in writing and signed by the credit owner.