![]() However, most (but not all) banks in these states only accept customers that live in the state where the bank is located. That way, a Florida debtor could open an account in the protected bank.Įven fewer states completely prohibit creditor garnishments of bank accounts no matter the amount of money in the account. Ideally, the debtor does not have to reside in the state with protected bank garnishment laws. If a state’s laws do not permit creditor garnishment of bank accounts, the debtor can maintain protected cash to pay living expenses and legal bills. In that case, the debtor’s money cannot be tied up by a garnishment writ while the debtor litigates exemptions. Open a Bank Account in a State That Prohibits GarnishmentsĪ judgment debtor can best protect a bank account by using a bank in a state that prohibits bank account garnishment. A bank may not be held liable for retaining money in a garnished account during the time the debtor is attempting to dissolve a garnishment writ through court proceedings. The debtor will have to hire an attorney to claim the exemption in a court proceeding and have the court order the garnishment dissolved. Understand that if a creditor serves a writ of garnishment on a bank where the debtor maintains an exempt tenants by entireties account, the bank will still freeze the account. It’s best to find a state-chartered Florida bank that expressly provides tenants by entireties accounts and where the entireties designation is expressed on monthly statements. Beware that there are several technical requirements to open an exempt entireties account at those banks that do not offer an entireties option on the account application. Florida law exempts entireties accounts located in the state regardless of where the owner resides. Tenants by entireties ownership of bank accounts is governed by 655.79 of the Florida Statutes.Ī debtor does not have to reside in Florida to maintain an exempt entireties account at a Florida bank. The accounts are not exempt from creditors of both spouses, however. In Florida and some other states, bank accounts owned jointly by married couples as tenants by entireties are exempt from garnishment by a judgment creditor of either spouse. There are four ways to open a bank account that no creditor can touch: (1) use an exempt bank account, (2) establish a bank account in a state that prohibits garnishments, (3) open an offshore bank account, or (4) maintain a wage or government benefits account. Opening a Bank Account That No Creditor Can Touch And obtaining a writ of garnishment against a bank account is a relatively simple legal procedure. Every debtor needs bank account money to pay living expenses and attorney fees, so attacking the debtor’s bank accounts puts financial stress on the debtor. One of the first things a creditor will do to collect on a judgment is garnish a bank account.īank accounts contain liquid assets that can immediately pay the creditor and their attorney. Most debtors keep significant amounts of money in bank accounts or money market accounts at financial institutions. Can a Bank Account in Another State be Garnished?.How to Hide Bank Accounts from Creditors.What to Do When Your Bank Account Is Garnished.How Can You Protect a Bank Account from Creditors?.Can a Bank Account Be Garnished Without Notice?.Opening a Bank Account That No Creditor Can Touch.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |