What is the name of your state? New York
I have been out of work for three years and due to multiple health issues, it is unlikely that I will be able to work outside my home for the foreseeable future, if ever. I am trying to put together a home-based source of income but nothing has come of it yet. For now, my family is helping me with small loans to pay for day to day expenses, and my wonderful landlord has allowed me to stay here without paying rent, trusting that I will repay him when I'm able to.
I had several major credit cards, plus a large student loan, at the time I left my job three years ago. I immediately stopped using any of the cards and I am not in default on my student loan, I conscientiously follow their rules in applying for deferments.
Even though I notified my creditors that I am not employed nor at the moment employable, and I have no assets, I have already been sued by two of them and have been served papers by a third. The first two have obtained default judgments and one of them seized my bank account. Actually, the bank took the money (less than $10) as a legal fee and so the creditor got nothing at all.
Having my bank account frozen like this has been a great inconvenience but I have coped. Using money orders for purchases and physically paying cash at my doctor's and dentist's offices, at the grocery store, etc. But it is somewhat difficult to get around and also there are things I need that would be much less expensive to obtain online, but I can't order them because I have no bank account or debit card I can use.
I have struggled to avoid going on welfare or trying to get disability. I believe with the help of my family I can remain independent and eventually be able to support myself from a home-based business. I know that filing bankruptcy will get these creditors off my back and the bank account will no longer be frozen. But I can't even afford bankruptcy right now and the issue for me isn't securing my assets -- I don't have any assets these creditors or even a bankruptcy trustee would be interested in.
My question is, can I open an online banking account, say at WaMu, and if so can the creditors seize that account also? I have read that it is difficult for creditors to seize your bank account if it's in a different state than the one you were sued in, and/or if you have never written them a check or in some other way disclosed the bank and the checking account information to them.
Will having a bank account frozen like this cause another bank to refuse to open an account for me? I have never had a bounced check at this bank and I have been their customer for 20 years.
I will appreciate any advice you can offer. Thanks!