need help with bank levy from civil judgement

[huerita]

What is the name of your state?What is the name of your state? CA

On Tuesday last week my husband's bank account was levied. It was a judgement on me for an old credit card I had defaulted on. My husband is the bank account holder though my name and ss# are on there but the bank made it clear to us at the time of opening it that it was Not my account since I did not pay the $12 membership fee.

I have been out of work due to a bad car accident for over 2 years. I lost my car and my husband lost his too due to my not being able to work. My husband lost his job 4 days before the bank levy so now we have absolutely no money and no car.

The money in the account was all his from a retirement check he received. I never was served a noticed of the suit by the creditor so I didn't see this coming. I received a copy of the judgement and attached it had a paper full of exemptions I could claim. Retirement and pensions are included as well as dwelling. I do own the house we live in but it is on the verge of a NOD.

I want to go to the court and file an exemption and go to the bank and take my name off the account. Will they then release the levy from his account and will they levy my house immediately? I am in the process of selling the house for cost just to keep more bad credit off me and so I can file for bankruptcy since now neither my husband nor I have an income and credit is so bad that I cannot refinance to save my butt. The house is only in my name, not his.

Please help as I need to take action immediately.

Shannon

[Debt Guy]

Yes -- you need to go to the courthouse and file for the exemption and ask the court to order the creditor to refund the money they pulled from your bank account.

If you were never served notice of the lawsuit, then you can file a motion to have the judgment vacated. While you are at the courthouse, ask to see your judgment file. Read to file to see what it says about service of notice. Ask the clerk how to file a motion to vacate the judgment on the basis of improper service.

Why are you waiting to file the bankruptcy? Have you consulted with a bankruptcy attorney?

[Ladynred]

The problem here is that you live in a COMMUNITY PROPERTY state. Just because only your name is on the deed to the house doesn't mean its not half his. Same with the bank account, even if it did only have his name on it, its community property.

Definitely file the exemptions, ASAP.

[debtcollector`]

The account had both of your names and you are in a community property state. The money levied is already gone -- I would focus on how you are going to pay the rest of it off.

DC

[huerita]

Yes, I'm in a community property state but the monies in the bank are from a retirement pension which is exempt. They are still in the bank and they are levied for 10-21 days. As of tomorrow, my name will be removed from the bank account and in several days the house will no longer be mine nor my husband's.

I am waiting to file a bankruptcy because a) I have no money to pay for one and b) I have a house with equity that I cannot get to, but creditors and other gutter dung can, so I need to relieve myself of that asset.

I have spoken to a bankruptcy attorney and he said I need to file 3-4 months after the house is out of my name.

Where do I get a form to file the exemption claim and a form to file the motion to vacate? Do I need an attorney to do either of those or are they self explanatory?

[Ladynred]

You don't need a lawyer, but you can certainly get one if you want to. They'll charge you an awful lot though.

Call the court clerk and ask if they have a form for exemptions. You can see if they have a form for the motion to vacate, they may not on that one. You definitely need a copy of the case file to find out when you were supposedly served on this.

3-4 months after transfer of the house is going to put you filing under the new laws, which are going to be pretty ugly for a lot of people. You need to have a serious talk with a lawyer about where you're likely to end up, Ch 7 may not be available to you and you'll get shoved into a very restrictive 5 year Ch 13.