Bank Levy

Asked almost 2 years ago - Los Angeles, CA

I was sued for an accident . The damages exceeded my then 15k insurance and plaintiff won at trial for 56k . The judgment was in Nevada , I reside in California . The plaintiff refused to negotiate with me even though I have no house , or equity in my automobile . In self employed so wage garnishment is not an issue . However I did have liquid assets in various funds . Before trial began , I transferred all my holdings to a Delaware bank that only conducts business in Delaware . Am I safe from bank levy ? Would my funds be safer in a foreign account , though wouldn't there be more complex tax issues ? If I can avoid payment for a while ( say a couple years ) will the plaintiff / lawyer give up or make a reasonable offer to settle that makes sense ?

Attorney answers (3)

  1. Michael Raymond Daymude

    Contributor Level 20


    Lawyers agree


    Best Answer
    chosen by asker

    Answered . A California judge can order you to turn over money or property to a judgment creditor. It's called a "turn-over order." A creditor who is on-the-ball can make your life miserable through aggressive tactics or can just sit back and wait until you have assets.

    Meanwhile, the judgment accrues interest at the rate of 10% and costs of collection can be included – a very good rate of return in today’s economic climate. Recorded abstracts of judgment and personal property liens attach automatically.

    Unless you intend to remain penniless the remainder of your life, perhaps you really should consider bankruptcy. Hopefully, the transfers you have made do not affect the exemption status of your present assets and the facts of the accident do not make the judgment nondischargeable.

    Avoiding creditors’ collection efforts does not make for a happy camper. The outstanding judgment is a huge ding on your credit for 10 years – longer if renewed. A bankruptcy might be the best way to resolve your present situation and allow you to have a future life. Good luck.

    I am licensed in California only and my answers on Avvo assume California law. Answers provided by me are for... more
  2. Robert Harlan Stempler

    Contributor Level 19


    Lawyers agree


    Answered . Living in any state, the collection attorney of this judgment can locate you, domesticate the judgment in that state, such as California, and then get a court order to have you appear in court with financial documents, including any assets and income, so that they can continue to pursue the judgment until it is collected in full or settled in full or discharged in bankruptcy.

    California would allow your wages to be garnished and if you have no regular employer, they can have the court order that anyone who owes you money, pay it over towards satisfying the judgment. Your bank account can also be levied if they domesticate the judgment in Delaware. Really, there is not much you can do if you have any assets that are not exempted by statute.

    Robert Stempler (please see DISCLAIMER below)
    Twitter: @RStempler

    NOTICE: The above statements are provided for general information purposes only and are not intended as legal... more
  3. Malosack Berjis

    Contributor Level 20

    Answered . Looks like you have already received two excellent responses. Best of luck to you.

Related Topics

Judgment lien

Judgment liens are the result of someone winning a lawsuit, and then entering the judgment against your property. They can be placed on your car or home.

Wage garnishment

Wage garnishment is the process whereby your employer sends part of your paycheck directly to your creditor in order to pay off your debt.

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