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Checking Account Garnishment

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Drowningndebt78

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

Michigan

Can a debt collector legally withdraw funds from my checking account without my prior knowledge or consent?
 


Proserpina

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

Michigan

Can a debt collector legally withdraw funds from my checking account without my prior knowledge or consent?


Has the creditor obtained a valid judgment against you?

If yes, they've likely levied the bank account legally. They won't tell you beforehand - that defeats the object.

If no, that's a different matter entirely.

So..which is it?
 

Drowningndebt78

Junior Member
Has the creditor obtained a valid judgment against you?

If yes, they've likely levied the bank account legally. They won't tell you beforehand - that defeats the object.

If no, that's a different matter entirely.

So..which is it?
Yes, there was a judgement, however the judgement stated that the funds would be taken out of my tax returns. Since I do not get money back from the government, I figured that I shouldn't worry about it.

All of a sudden, months later, I find that my checking account has been cleaned out. To make matters worse, I'm getting "non-sufficient funds" fees for every check that I have written as the funds are no longer available.

So this is in fact legal to do? Even though I have not been notified beforehand?
 

Proserpina

Senior Member
Yes, there was a judgement, however the judgement stated that the funds would be taken out of my tax returns. Since I do not get money back from the government, I figured that I shouldn't worry about it.

All of a sudden, months later, I find that my checking account has been cleaned out. To make matters worse, I'm getting "non-sufficient funds" fees for every check that I have written as the funds are no longer available.

So this is in fact legal to do? Even though I have not been notified beforehand?

I take it you didn't actually tell them you received no tax refunds? Well, they simply did the next best thing. You knew you had the debt, you knew you had the judgment, so they levied your account.

Usually the bank will let you know a couple of days afterwards. Obviously the creditor knows that if you're given notice, you'll simply withdraw the money first.
 

Drowningndebt78

Junior Member
I take it you didn't actually tell them you received no tax refunds? Well, they simply did the next best thing. You knew you had the debt, you knew you had the judgment, so they levied your account.

Usually the bank will let you know a couple of days afterwards. Obviously the creditor knows that if you're given notice, you'll simply withdraw the money first.
Thank you for your feedback. One last question. Will closing this checking account and opening another do anything to keep this from happening again? FYI, they cleaned my account for about $900, but the judgement is for close to $5000.
 

Proserpina

Senior Member
Thank you for your feedback. One last question. Will closing this checking account and opening another do anything to keep this from happening again? FYI, they cleaned my account for about $900, but the judgement is for close to $5000.

They'll get their money somehow. They found that account, they'll use the same means to find any other account you have.

Most judgments in Michigan are good for 10 years - and they can be renewed. It might be better for you to start making payment arrangements. This isn't going away any time soon.
 

Ohiogal

Queen Bee
Thank you for your feedback. One last question. Will closing this checking account and opening another do anything to keep this from happening again? FYI, they cleaned my account for about $900, but the judgement is for close to $5000.
You really think you will be able to open another bank account with all the bounced checks you have written? Many banks won't allow you. Pay what you owe and you won't have this issue.
 

single317dad

Senior Member
Thank you for your feedback. One last question. Will closing this checking account and opening another do anything to keep this from happening again? FYI, they cleaned my account for about $900, but the judgement is for close to $5000.
There will be a "proceedings supplemental" hearing (or MI equivalent) where the creditor will attempt to discern all deposit accounts held by the debtor. Subpoenas may be issued to state department of labor (to determine place of employment), banks, and other financial institutions. Chances are you either gave them this bank information at a previous hearing, or the proceedings supplemental was held without your attendance. Either way, they'll find your other accounts and take that money too until the debt is satisfied. They'll do it without notification each time (except for garnishment of wages).

They can also seize property titled in your name with certain restrictions, so say bye-bye to the motor home, ATVs, and boat.
 
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