freezing bank account

[bearfootball]

What is the name of your state? TX
Got a call from my bank Friday and they said our County Court has frozen my bank account, because of a judgement against me through Providian. I only have a few thousand in the account. It was my understanding a collection agency could not do that in Texas. Any help would be greatly appreciated.

 

[JETX]

"Got a call from my bank Friday and they said our County Court has frozen my bank account, because of a judgement against me through Providian. I only have a few thousand in the account. It was my understanding a collection agency could not do that in Texas. Any help would be greatly appreciated."
*** The KEY to this is that they (the judgment creditor) got a judgment against you. Without the judgment, a creditor cannot seize (garnish) your account, but they can with the judgment.

 

[bearfootball]

You can't garnish wages in TX, I know that for a fact.

 

[enjay]

Garnishing your wages is not the same thing as seizing your bank account.

 

[bearfootball]

I understand the difference between siezing and garnishment. I know they can't garnish, and I thought they couldn't sieze:
1. your home
2. 1 car per person
3. your only bank account
4. retirement, IRA's, etc.

I know they can sieze other property owned, if you own multiple cars, stock accounts....

This account they siezed is my lone account, again, with a low dollar amount.

 

[JETX]

I understand the difference between siezing and garnishment. I know they can't garnish, and I thought they couldn't sieze:
1. your home
2. 1 car per person
3. your only bank account
4. retirement, IRA's, etc.

I know they can sieze other property owned, if you own multiple cars, stock accounts....

This account they siezed is my lone account, again, with a low dollar amount.

*** Though you are mostly correct, the one about "your only bank account" is not. A judgment creditor CAN seize your bank account in Texas (and to my knowledge, every other state).

 

[bearfootball]

JETZ,
Are you sure about bank account? I appreciate your feedback, however I don't think you're correct.

 

[Ladynred]

JetX is a judgment enforcement specialist - in TX ! If anyone knows what can and cannot be siezed, he does

 

[JETX]

Texas Finance Code:
"§ 59.007. Attachment, Injunction, Execution, or Garnishment
(b) An attachment, injunction, execution, or writ of garnishment issued to or served on a financial institution for the purpose of collecting a money judgment or securing a prospective money judgment against a customer of the financial institution is governed by Section 59.008 and not this section.

§ 59.008. Claims Against Customers of Financial Institutions
(c) The customer bears the burden of preventing or limiting a financial institution's compliance with or response to a claim subject to this section by seeking an appropriate remedy, including a restraining order, injunction, protective order, or other remedy, to prevent or suspend the financial institution's response to a claim against the customer."
http://www.capitol.state.tx.us/statutes/fi/fi0005900.html#fi008.59.008

In fact, what is your name.... I might have been the one that seized your account!!

 

[bigun]

Jetx,

Does this mean you must notify your bank that the funds in the account are from exempt sources i.e wages, social security, etc.?

 

[bearfootball]

JETZ,
So you're one of those kind of people. Everyone has to make a living, so I don't hold that against you. George Dubya has made it pretty hard for you types to collect bad CC loans in our state, hasn't he.....

 

[JETX]

"Jetx,
Does this mean you must notify your bank that the funds in the account are from exempt sources i.e wages, social security, etc.?"
*** The debtor can file a 'challenge' to the garnishment with the court and the court will set a hearing. All parties (judgment creditor, judgment debtor and bank) would make appearance and court would rule on whether to exempt or not. One of the problems with this in Texas is... the debtor gets stuck with the expenses of the garnishment and the banks legal fees.

 

[JETX]

"JETZ,
So you're one of those kind of people."
*** Yep, I just love to make people be responsible for their debts and obligations...... Heck, I often get to make them cry!!!

"Everyone has to make a living, so I don't hold that against you."
*** Okay. I won't hold your being a bear against you either. And if you use that because you went to Baylor (I think we discussed this before), that is okay. Not everyone qualifies for good schools.

"George Dubya has made it pretty hard for you types to collect bad CC loans in our state, hasn't he....."
*** Nope. If you had any knowledge of Texas history, you would realize that the 'debtor friendly' Texas rules were set long before our President was governor. In fact, about 180 years before.

 

[bigun]

Jetx,

Taking the question a step further. Say, you notify the bank prior to any judgment being returned that all funds are exempt from garnishment. Can judgment creditors still attach accounts?

 

[JETX]

"Say, you notify the bank prior to any judgment being returned that all funds are exempt from garnishment. Can judgment creditors still attach accounts?"
*** Yes. The reason is that, in Texas, the garnishment process is a new lawsuit (filed in the same court as the original) where the bank is named as a defendant. The bank then has the full responsibility of answering the lawsuit, etc.

Generally, the bank will handle the garnishment in one ofthree different ways:
1) The debtor has funds at the bank and the bank turns them over. In this case, I will usually file a non-suit to prevent the bank from incurring large legal fees.... which are eventually paid by the debtor.
2) Or, the debtor has funds at the bank, but the bank files a challenge to protect their account holder. The bank will then normally try to contact their account holder to see if he wants to challenge (at his cost). If he doesn't, the bank will normally drop their challenge and turn over the funds,
3) Or, the bank does NOT have any funds of the debtors and contacts me. If this is the case, I will normally again non-suit to save ME the fees (as plaintiff).

Naturally, the debtor can file a challenge on his/her own.... at their cost. If this is done, a hearing is set for them to present their challenge to the court.