Debt collectors can be a threat to your bank accounts.
I am retired and have a credit card company that charged off a debt of $6,814.00 in December of 2008. Can a collection agency place Civil Judgement against me in a circuit court which is public record on my credit report? They have started sending letters, stating that the updated amount is $11,200.00. Can they place a lien against a money market account or checking account that is in my name?
Credit card charged off and sued by collection agency can they lien my checking and other bank accounts?
—IRMA
The direct answer to your collection question is yes, your checking account can be levied if there is a legitimate judgment entered against you. I have some real concerns to share with you given the little collection detail you provided.
Were you sued to your knowledge? In other words, did you receive a summons and complaint from the creditor or collection agency? If so when and what did you do about it at the time?
Here is why I ask – Debt collectors acting illegally often make threats that include all of what you asked about. They will say things like:
- Your creditor or the collection agency itself is going to sue you.
- They will garnish your wages directly with your employer.
- Report information to the credit reporting agencies.
You can find out if you have a judgement against you by checking the records at your local court. Collection accounts also have been filed in court and papers served illegitimately that later results in a court judgement being entered. If you have not been sued and there is no judgment and you are experiencing these kind of abusive collection calls and threats, your next step will be to contact an attorney with experience in this type of thing and look to their advice about your next step. If you reply in the comment section below with your zip code, I can look up an attorney for you.
If there is a legitimate judgement against you, your checking account is at risk. You should keep as little money in that account as possible until you resolve the judgement.
Please answer my above questions in the comment section below and I will be better able to make some suggestions about how to handle this situation.
Anyone with concerns about how unpaid debts can result in risk to your bank accounts, wages, and personal property, is welcome to post in the comments below for feedback. I also recommend reading up on exemptions that may protect you in your state: https://consumerrecoverynetwork.com/question/social-security-pension-state-exemption-debt-collector-garnishment/
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry, and is a regular contributor to several personal finance websites.
