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Hello~ Is there a way to stop a legal order to levy my bank acct without doing a bankruptcy?

Santa Barbara, CA |

A credit card company has a legal order to levy my bank account. The total is approx $9K. I am a sole proprietor of a small business.

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Attorney answers 2

Best Answer
Posted

In the short term, take the money out of the account and spend it on reasonable business or living expenses. In the long term, we don't have enough facts to advise you properly.
Make an appointment as soon as you can to speak with a bankruptcy attorney. We give advice on non-bankruptcy alternatives as well where they apply and make sense. Good Luck!

Asker

Posted

Very much appreciated, Dwayne. I have pulled my funds from my checking, but they still will put through a legal order which Wells Fargo charges $125 for each time! I feel may bi in the position to do a Bankruptcy at this point. Have approx $20K in credit card debit ($9K of which is the legal order), the others are collection agencies that are offering settlements. I really blew it letting the one go to a judgement. Fear kept me stuck from addressing it. Hard lesson learned. Do you know if a credit card company with a judgement will consider a settlement? I called them and didn't receive a return call. Thank you, again. Monica~

Dwayne M Farnsworth

Dwayne M Farnsworth

Posted

Monica, you're not alone in having let the judgment go to default. Something about having limited resources and receiving service of a lawsuit that tends to have a paralyzing an overwhelming effect on most of us. To answer your direct question, yes some credit card companies will consider a settlement if they have no other way to try to collect from you. As regarding the fees from Wells Fargo, this is why you're going to set up appointment to meet with your Wells Fargo banker to make certain that they understand that these amounts cannot be taken from Social Security income, and therefore they should not be charging the fees. If this is not successful, then you may want to go to the court that is issuing the levees against your bank account and explain your circumstances and position to the judge. This will probably get the judgment creditor to stop attempts to take monies from your protected bank account. While $20,000 worth of debt doesn't seem to be enough to file bankruptcy for some people, I have many many clients are on a fixed income and they just want the relief and the peace that comes from getting a bankruptcy discharge and moving forward. I think it'd be well worth your time to set up an appointment to meet with a bankruptcy attorney in your area to discuss these issues as soon as possible. Have a great day.

Asker

Posted

Wow, thank you again very much, Dwayne, for taking the time to detail this for me. Though not on a fixed income, I am a self employed consultant in the BUILDING industry that took a huge dive beginning approx 2009. It is just now coming back around in my area, and attempting to figure out best way to handle the judgement since the others will settle. I will call them again and see if they would be open to something other than the legal orders. If not, I will follow your advise and consult with our local bankruptcy court. They offer free advise. I feel more empowered with your insights/advise. Thank you, again.

Posted

Is this a business account? Or a personal account? If the account is a personal account, you may file a Claim of Exemption on the grounds that the money in the account are your earnings and you need the money to pay for necessities of life such as rent, food and utilities? If the account is vested in the name of a separate business entity, personal exemptions do not apply. You may want to meet with a lawyer to review the specifics of your situation.

Asker

Posted

Thank you VERY much,, Richard. I will seek an attorney's advise regarding this. Very helpful insight about 'Claim of Exemption' - and yes, a personal acct. Monica~

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