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Wage garnish/Bank account Question

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JohnV1

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

I was recently notified of a wage garnishment for a past due credit debt, this effectively started on my last paycheck.

My question is: I recently received a large check a life insurance policy as a family member passed away. Currently I do not have a bank account but was considering opening one with this insurance check. If I open this account will it be frozen for collection of this debt as well? Any advice on this would be appreciated!
 


pattytx

Senior Member
Why don't you just contact the creditor/collection agency, and see what the pay-off would be? Then, open an account, get a cashier's check for the balance, and pay it. At that time, a release from the wage garnishment should be issued to your employer.
 

JohnV1

Junior Member
Why don't you just contact the creditor/collection agency, and see what the pay-off would be? Then, open an account, get a cashier's check for the balance, and pay it. At that time, a release from the wage garnishment should be issued to your employer.
Thanks for your response!

I did consider that but with this economy and current other debts I'll need the majority of that money to move forward. In other words I can accept and survive the wage garnishment but taking the money from that check to settle it now would definitely hamper getting myself in a better position to work through other finacial issues I currently have.
 

pattytx

Senior Member
My understand is that, once there is a wage garnishment in place, the creditor won't go further unless the deduction/payment stops.

I'm sure someone will correct me if I'm wrong. ;)
 

nate811

Junior Member
The bank would not notify your creditor or anything like that. If you open an account, don't give that account information to your employer. It's unlikely that the bank would find out about that account through anyone except you.

If the bank did find out, they could go to the court and get another garnishment similar to the wage garnishment so they could then present that garnishment to the bank, similar to how they presented the wage garnishment to your employer. But as long as they are going to recover the money through the wage garnishment, they are unlikely to spend additional time and money to try to collect from your bank account.
 

TigerD

Senior Member
The bank would not notify your creditor or anything like that. If you open an account, don't give that account information to your employer. It's unlikely that the bank would find out about that account through anyone except you.

If the bank did find out, they could go to the court and get another garnishment similar to the wage garnishment so they could then present that garnishment to the bank, similar to how they presented the wage garnishment to your employer. But as long as they are going to recover the money through the wage garnishment, they are unlikely to spend additional time and money to try to collect from your bank account.
The above post is wrong. Your new account will be locatable within a week. Whether or not they will is WAG and no one can honestly say either way.

DC
 

cosine

Senior Member
Is the check drawn on a bank you can go to in person? It MAY be possible to cash it directly (with plenty of ID to prove you are you). I would not do this for more than $10K, though. Or maybe open the new account at that very bank (it could clear faster that way), then withdraw the cash you need ASAP.

How many other unpaid debts do you have?
 

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