Block on joint bank account by collection firm

[hwoodfilm]

What is the name of your state (only U.S. law)? New York

My question involves collection proceedings in the State of: New York.

I have a joint bank account with a family member.
He had a business that has been closed for a couple of years.
A vendor from that business has sent an invoice to collections (a law firm).
That law firm has put a block on all his accounts including my joint account.
The money in this account is all mine, and his name is on the account so that he can do banking for me when i am out of town. This collection has nothing to do with me. The collecting firm is trying to get me to sign off on half of the assets in the account as his.

The problem I have is that i was supposed to have a bunch of direct deposits taken out for mortgage payments, etc. and cant do any banking with this account. Is the law firm allowed to block this joint account over a debt from only one of the account holders? The law firm said that they "assume that half of the balance" in the account is from the person who owes them.

Are they allowed to block all of the money in this account?
My argument is that: right off the bat, they should only be able to block 50% of the funds since only 50% of the account holders are involved in their dispute. In addition, the other 50% I am disputing as being my money as well. That being the case, the dispute between me and them is for that half of the pie only. My undisputed half should be available to me immediately.

Am I getting railroaded here? They wont talk to me because they are demanding that they wont talk to anyone but counsel on the matter. As the amount in question is in a monetary range that makes paying for good counsel pointless ($4000 in acct, $2500 judgement being sought), what is my recourse? Again, me not being a party to the invoice dispute. Any precedents in this matter that i can cite?

thank you.

David

[Antigone*of*Greece]

Originally Posted by hwoodfilm

What is the name of your state (only U.S. law)? New York

My question involves collection proceedings in the State of: New York.

I have a joint bank account with a family member.
He had a business that has been closed for a couple of years.
A vendor from that business has sent an invoice to collections (a law firm).
That law firm has put a block on all his accounts including my joint account.
The money in this account is all mine, and his name is on the account so that he can do banking for me when i am out of town. This collection has nothing to do with me. The collecting firm is trying to get me to sign off on half of the assets in the account as his.

The problem I have is that i was supposed to have a bunch of direct deposits taken out for mortgage payments, etc. and cant do any banking with this account. Is the law firm allowed to block this joint account over a debt from only one of the account holders? The law firm said that they "assume that half of the balance" in the account is from the person who owes them.

Are they allowed to block all of the money in this account?
My argument is that: right off the bat, they should only be able to block 50% of the funds since only 50% of the account holders are involved in their dispute. In addition, the other 50% I am disputing as being my money as well. That being the case, the dispute between me and them is for that half of the pie only. My undisputed half should be available to me immediately.

Am I getting railroaded here? They wont talk to me because they are demanding that they wont talk to anyone but counsel on the matter. As the amount in question is in a monetary range that makes paying for good counsel pointless ($4000 in acct, $2500 judgement being sought), what is my recourse? Again, me not being a party to the invoice dispute. Any precedents in this matter that i can cite?

thank you.

David

Hello David,

As long as the other party is listed as a joint owner on the account, there is no division of funds. The funds are all his, as they are all yours (in the eyes of the law). Your only recourse is to get the funds from your family member - he is the one who has railroaded you here.

I suggest that you sever all financial ties with this family member. You don't know if he has any other judgements out there.

Sorry, I wish I had better news.

Take care, ana

[ecmst12]

You will have to file for a hearing so you can attempt to prove that none of the money in the account belongs to the debtor. A lawyer would probably be the best way to get things handled quickly.

[Antigone*of*Greece]

Wouldn't the OP be looking at more than the judgement in attorney's fees (remember he said the judgement is only 2500)?