Collection Actions Before Bankruptcy

A creditor who has a judgment against you may decide to levy your checking or savings account.  All the creditor needs is a judgment and then the creditor can go to a Judge and get an Order to give to a bank to seize the amount in the bank account up to the amount owed.
Many times, the creditor will do this from out of state.  If you have an account with Bank of America or some other multi-state bank, the Order will direct the bank to seize the money in that account.  It does not matter that you may have never been in that state or have not been in that state in many years.  The bank must honor the Order seizing the money in the account and you must try and fix this problem.  Unfortunately, your money has just been taken and how do your pay your attorney or maybe an attorney from another state.  In many cases you cannot and the creditor wins by default.
What this means is that just because the judgement was entered against you in a different state does not mean that you are safe.  You thought that you had no assets for that creditor to take and now you suddenly find how wrong you were.
Watch out, the next thing you may get is a levy on your bank account.  If you choose to not take action, you need to make sure that your bank does not do business in a state where a judgment was granted against you.

If you file for bankruptcy, this type action is stopped in most cases.


About Nathan Davis, Esquire

Born in Charleston, South Carolina, Nathan Davis has been practicing law for many years. Mr. Davis has a wide variety of experiences having practiced domestic relations, criminal law, social security law having also practiced collection law in the past. This knowledge is helpful when someone needs to restart their financial life. The practice is now primarily bankruptcy and debtor representation work, but, Mr. Davis continues to also practice real estate law, trusts and estates and a general litigation practice. I believe that the most important part of representation is trying to leave you better off when the case is finished than when you started. Although I will do as my client directs, I will always tell you if I think that you are making a mistake. Bankruptcy is about a "fresh start". If you do not make changes in what you are doing, you will be doing what you are doing now in the future. There is no shame in bankruptcy or other steps that you may take to start your life over. Too often, people worry more about things than about themselves, their family or their future.
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