A LEIN ON MY BANK ACCOUNT - help right away please!!

[storenyc]

What is the name of your state? NY

I have a lein on my checking account from a CHASE credit card .
I never got a notice about the case being transfered to a law firm

I owe $5000 they want 30% -- I am self employed and not working at this time .
And I have no clue when I will work again --
I had $1500 in my account at the time of the freeze .

It was for my rent -- I can pay the lawyers $ 750 -- with a payment plan in place .

1 - Does the lawyers have the right to take all the money?

2 - If I pay nothing , what will happen?
Can they garnish my wages?

3 - If I do nothing will the freeze be taken ? Or does it stay on forever ?
What happens to the $ ?

I'd much rather pay what I can -- but what if the lawyers will not aggree on the $750

What are MY rights?

Thank You

[Debt Guy]

Q. I have a lein on my checking account from a CHASE credit card . I never got a notice about the case being transfered to a law firm

A. NY is pretty flexible about what qualifies as legal service of notice. It may be that they just could not find you or it may be that the creditor faked the service. They only way to know for sure is to go to the courthouse and ask to see the judgment file. Read it carefully -- especially the affidavit of service. If you think the service was bogus, then you may file a motion with the court to vacate the judgment. This does not happen fast.

Q. I owe $5000 they want 30% -- I am self employed and not working at this time . And I have no clue when I will work again -- I had $1500 in my account at the time of the freeze . It was for my rent -- I can pay the lawyers $ 750 -- with a payment plan in place .

A. As you can tell, the lawyers for the creditor do not much care about your personal situation.

Q. 1 - Does the lawyers have the right to take all the money?

A. Yes, probably. It order to levy your bank account, they have been awarded a judgment. They were awarded a judgment because you failed to appear or answer the summons.

Q. 2 - If I pay nothing , what will happen? Can they garnish my wages?

A. Yes. However, if you don't have a job there is nothing to garnish. Also, they can seize any non-exempt assets.

Q. 3 - If I do nothing will the freeze be taken ? Or does it stay on forever ?
What happens to the $ ?

A. The levy stays in place until the creditor is paid in full plus attorney and court costs.

Q. I'd much rather pay what I can -- but what if the lawyers will not aggree on the $750

A. By your own admission, you owe the money. Anytime you are in default, the creditor has the legal right to demand payment in full immediately. You cannot make them take less than is owed. You and try to negotiate but you have very little leverage at this point.

Q. What are MY rights?

A. You have the right to be treated fairly in accordance with the law and you have the right to due process under the law. You have the right to hire an attorney to represent your interest. The creditor cannot make threats that are illegal.

Although you see this action as harsh and unfair, it is most likely entirely legal. It is possible that you were not served because the creditor has faked the service (it has happended before) but the only way to know for sure is to go read the file.

Unfortunately, wage garnishment and bank account levy is the end result of ignoring the creditor.

[JohnC]

Debt Guy,
What assets are exempt in New York? See my post on a new thread.

[Debt Guy]

I don't know where the new thread is -- so I cannot respond.

In most cases, asset exemptions from creditor seizure are the same as asset exemptions in BK. Only a local lawyer could tell you for sure (or someone with the time to read the NY statues in detail -- which I do not have).

Here is a link to NY bankruptcy exemptions. At worst they will give you a good idea.

[url]http://www.newyorkbankruptcylaw.com/exemptions.html[/url]