Debt Collection – Auto Loan Deficiency – Bank Account Levy – Wage Garnishment
I am from Pennsylvania.. I co-signed a car loan for my son 6-7 years ago, (I cant remember exactly how long ago.) My son was 16 at the time, he lost his job about a year and a half after he got the car, and I couldnt afford the payments, so we gave the car back. A judgement was placed against my son and I by default in August, filed through the Sheriffs office at the courthouse and on December 5th they put a hold on my bank account for 8,000.00. I found out about the hold by trying to use my debit card, and received the paperwork concerning the hold approx. a week later. Iimmediately stopped direct deposit of my paycheck and opened a joint account with my boyfriend to protect my money from that point on. I called the attorney/debt collector after finding out about this hold and I was told that they sent a Letter of Interrogatories would be sent to my bank (PNC BANK) and that they had 30 days to respond to this letter. Until then they were holding my account. Needless to say I was in a great financial bind, I had 300 dollars in that account that i desperately needed. Per the letter from the Sherriff office, the state of PA gives a cash exemption of 300 dollars, which what is in this account. A couple of days ago I got a certified letter from PNC Bank providing an answer to the interrogatories that was sent to me, the Sheriffs office and the attorney/debt collector. This was sent on 12/24, and it is now 12/31 and my acount is still frozen. They have never done anything to my son ( who is now 23).
How much longer will my bank account be frozen, and can they attach my wages for this debt owed?
—Keri C
It would be good to know a bit more about the nature of the deficiency judgment and the debt in order to give more than general feedback. I will pose some questions below that you can answer in a comment reply that will help me understand the collection situation better.
Wage Garnishment in Pennsylvania
Your wages cannot be attached or garnished for this type of debt in Pennsylvania. PA is one of the more favorable states protecting your income from employment in this regard. That leaves property liens and bank account levies (which you are experiencing) as options for collection action on a judgment.
Do you own real estate in Pennsylvania?
Debt collectors often use skip tracing methods to locate bank accounts in your name. That may be how they found your bank account they are levying now. Unfortunately, they can use the same tactics to locate the account you opened with your boyfriend. That account is not protected just because it is a joint account. In fact, your boyfriend’s money could be at risk.
Your account with the current levy could be at risk until the debt is resolved.
Collecting on Auto Loan Deficiency Balances
When you surrender a vehicle that you still owe money on, they auction it off. Whatever they get at auction is deducted from what is still owed on the car loan. What’s left unpaid is the deficiency balance. These deficiency balances often get sold off to debt buyers. Debt buyers will send these debts to a collection attorney. Sometimes, as is the case with you, the attorney will sue in order to collect. This type of lawsuit can end up with a judgment debt against you.
You can settle a debt that is the result of a surrendered or repossessed vehicle at any stage I referenced above. There are variables for settling debt like this that are unique to you and also the stage of collection. The collection stages are:
- Settle the deficiency amount while it is owed to original lender
- Settle with a collection agency that the original lender sent the deficiency balance to for collection
- Settle with a debt buyer after the deficiency balance is purchased
- Settle with a collection agency the debt buyer assigns the deficiency debt to for collection
- Settle with an attorney that the lender or debt buyer hires to collect on the deficiency
The amount you can save when settling a deficiency balance will vary. When there is a judgment in place after being sued on this type of debt (or most types of judgment debt), the settlement savings will generally not be as good as would have been the case when settling prior to collections filed in court.
You are better off living in Pennsylvania because your wages are protected from garnishment. Once the debt collection efforts from levying a bank account prove unfruitful, you are generally going to be in a better position to get a better deal through settlement.
Is your goal to settle the deficiency balance that is now a judgment?
The judgment is not going anywhere. In fact, the balance is likely growing with judgment interest set by the court. You can read a bit more about the long shelf life of judgment debt here: https://consumerrecoverynetwork.com/question/can-you-settle-credit-card-judgements-like-other-debts-stressed/
There may not be good options for you to settle the deficiency judgment right away. In that case you can try to manage your affairs on as much as a cash basis as you need to until you have a plan to resolve the debt.
You mentioned being a cosigner on the loan originally and that your son not hearing anything on this. That would make sense if he was 16 at the time. He would not be able to contract for the loan at 16.
Can you tell me if the loan was ever refinanced after your son turned 18?
Who was the original lender?
When was the last payment on the car made?
Who sued – the original lender, or a debt buyer? If a debt buyer, what name?
Who is the attorney hired to collect?
If you can answer my questions in a comment reply below I will have more feedback.
Anyone dealing with a deficiency balance that resulted from a repossession (voluntary or otherwise) is welcome to post in the comments below for feedback.
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. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
In 2000 I co-signed on a GMAC Chevy car for my sister who lives in Florida. I live in NYC. About two years later my sister turned the car in when she could not afford the payments. About six months later I received a letter from GMAC stating they auctioned the vehicle for $6,000 when they valued it at $12,000 so I owed them $6,000. This amount I never paid since I thought they received their car back. Several attempts were made over the years to collect the debt which I ignored since I can’t even afford a lawyer to date. Today Citibank told me that GMAC sent a subpoena and that my debit/checking account was frozen until I called the GMAC Collectors. I haven’t called as yet but can I be liable in NY 13 years after the car was turned in? Can GMAC garnish my wages in NYC? Thank you for your help.
The only way they get a bank levy like that is if they have a judgment filed against you. Do you recall ever being sued for the debt?
With a judgment in place they can garnish wages in New York.
Can you tap into resources in order to come up with, say half of what is owed, and fund a settlement for 3k?
If you were unaware of the lawsuit, it may be a better to look at what you can do to “unring” that judgment bell.
Many years ago they sent me a subpoena to appear in Florida for a hearing for the monies owed to GMAC. I had no money to travel or money to retain and attorney and I did not go. This judgement would still be outstanding even though I signed the loan agreement in 2000?
Michael I do not have a 401K or any other source of deposits that I can tap into. It does not look good.
Operate on as much of a cash basis as you can until you are close to having half of what is owed, then negotiate the settlement.
The alternative is to get a payment agreement set up, but the math favors settling.
Okay, thanks for those details. I would probably look to settle the debt for the best savings possible if it were me.
Judgment debt does not expire like you are thinking. It can be renewed, and sometimes last forever. It isn’t going away.
If you need help with this give me a call using the hot line. Option 2 rings to me.
I am about to surrender my vehicle as I can no longer make payments on it due to financial hardship. There will be a considerable deficiency left and I am sure I will be sued for this. I am a homeowner and live in PA. My husband works in New Jersey but lives in PA. So my question is two fold, can they garnish my husband wages because of where he works and would it be in my best interest to file for bankruptcy?
I would talk to an experienced debt collection defense attorney in PA about whether or not NJ wages can be garnished for a PA judgment with the debtor residing in PA.
How much is owed on the card today?
Do you have other unsecured debts like credit cards, and if so, how much does it all add up to?
You may be able to settle the deficiency balance after the vehicle is auctioned. Sometimes the savings you can negotiate is significant. If you are able to save money over time, or access a lump sum of cash along the way, you can avoid bankruptcy. On the flip side, if you are struggling with other bills this may be the perfect time to eliminate financial stress and get a fresh start through chapter 7.
The dealership rolled in $10K deficiency into the $24K loan for a staggering $34K.. I’m sure that they’ll only get about between $13-$16K for the car at auction which will leave me with about $20K in deficiency. I have only two credit cards with about $5K on them.. At this point, bankruptcy seems like the only answer as I can’t afford for them to garnish wages. I also don’t want them to put a lien on my home.. Thanks for you help.
It can take a while to be sued for the deficiency balance on a voluntary repossession. Some people are never sued. They would have to sue and get a judgment before they could garnish wages or lien a home. You could negotiate a lower pay off all along the way.
Having said that, bankruptcy may be the best option to just put this, and the other debts behind you. I suggest you read my article about finding a good bankruptcy attorney and then call to consult with a couple.
You are not under any pressure to file right away, but get the consults out of the way and you will likely feel a lot better once you learn that you qualify for chapter 7.
In 2004 I bought a car from gmac for my sister. I then went off to the army. I was never told that my sister stopped making payments and the car was repoed in 2008. I never received any contact from gmac or collections about the car. In 2013 a collection agency showed up on my credit report in reference to a $6100 balance for the car. I disputed the claim and it was removed from my credit report. All of the sudden (a few days ago) I received a collection letter from a collection agency demanding payment of $6153. I don’t know what to do. The car was purchased in Minnesota and now I live in georgia. Hasn’t the SOL already run out? Please help. My wife and I are trying to buy our first house.
The SOL to sue could have possibly run, but any credit reporting of a repossession may not have. What is the name of the debt collection company contacting you? Is there a repo showing on any of your credit reports as of today?
the collection agency is Northstar Location Services, LLC.
I also talked with my sister and mother about the repossession and time frames. According to my sister, she stopped making payments on the vehicle in the beginning of 2007. She said that she made the first two months before stopping, which means her last payment would have been around February 2007. She (and my mother confirmed) that the car was repossessed when no one was home around the end of the year in 2007. She could not remember exactly when, but said it sometime between October and December of 2007. Both my sister and mother claim that GMAC made no effort to send any lack of payment letters, bills, collection notices or anything between the time payments stopped and the car was repossessed.
Since I was in the army and away at basic (i.e. no contact allowed) I had no knowledge of the issues with the vehicle. When I bought the car for my sister, my mother had to give permission since my sister was underage at the time. The dealer at GMAC had knowledge that the vehicle was a gift for my sister and that she would be making ALL payments for the car.
I would like to send you a copy of the collection notice I received if possible. How do I get this to go away? At the current moment, there is nothing on my credit report, however the report will be updated at the end of the month. What do I do when/if it shows up?
I do not think you have anything to worry about Alex. It appears form the dates and details you provided that the debt from the repo is too old to be sued upon legitimately, and is just old enough to be dropped from your credit reports. That does not mean debt collectors stop trying to collect, and that is why you got the collection letter from Northstar Location Services.
If the debt appears on your credit again post an update and I can help you from there.
ok I will. Thank you for settling my fears and for potential future assistance.
Hi I live in NY and my husband cosigned for a car loan in 1999 however 2 months after that unfortunately he got arrested and spent 10 years in jail. Today his accounts are on hold and are -$40,191.00. He was of course unable to make payments and he’s not sure why the borrower didn’t pay for the car and has no communication with him. My husband claims he never received any letters and has no idea what to do. Please help, ford motor card put a levied all of our ccounts. What can we do? Thank you
I would encourage you and your husband to call in for a consult. You can reach me at 800-939-8357, choose option 2. I have several questions about where things are at with you both today before I can offer the detailed feedback you need.
I got an $11,000 auto loan by coastal credit. I was unemployed for about two months and fell behind by 1 and 1/2 payments and 43 days. They called, emailed, and texted every single day and finally repossessed the car at 43 days. I tried to email the lady who was emailing me and ask information and she pretended like she didn’t know me and then kind of blew up on me, being extremely sarcastic and eventually saying, “oh yeah, I remember you!” They sold the car without telling me where but did say when. My debt was still almost $8000 and now 6 months later they are saying I have an additional $900 in interest. With that much interest I will never be able to pay off that debt even if I were able to start paying right now. All of this feels wrong and I want to know what my rights are. It doesn’t seem like I should owe nearly the entire loan and with interest it will be more since they took the car and sold it. When trying to work with her she would tell me, “we can take the car if your one day late.” I’m in Colorado.
I would question the interest accumulated being so high in 6 months.
It is normal to have the deficiency balance after the car is sold at auction. Those repo auctions are known for the low sale prices. It is entirely possible to see your car sold for that low, leaving that large a balance owed.
I am sending you an email with a list of Colorado attorneys with repossessions as part of their practice. The first 3 in the email specifically, and the rest generally through legal assistance with debt collectors.
I’m from Nj and my car was repoed on January 12,2009 with my mom being the cosigner. I’ve been having this deficiency balance of $7,000 sold to a few collection agencies and just recently a new agency has called me to collect. I feel as though the value of the 2005 Honda Civic I had at the time value is way lower than what they are trying to collect as of now, I also feel as though that the price they sold it for at the auction should have covered the value of the car. I feel like the remaining balance they are trying to collect is just interest. When they repoed my car the balance on the car was $17,000. At the time I was young and dumb and a first time car buyer .I never did my research on financing a car, I wanted to know if they can still take me to court and if so what other options do I have to solve this matter because I feel as though the remaining balance they are trying to collect is ridiculous.
There is a six year SOL to sue on a written contract in New Jersey. That would put your deficiency balance on the repossession outside the debt collectors ability to legitimately use the courts to get you to pay.
You would be able to get a fairly decent settlement on this if you were motivated to resolve the debt.
Do you have any credit or financing goals in the next year that this is going to hold you back from?
I was just served papers stating that I owe a 10k balance on a car that was repossessed back in 2010.
Is there anyway to pay $20 a month as me and my family are challenged for money. It was bought to the supreme court in our county. I’m based out in California. Could you refer me to someone to help me with this situation.
Give me a call at 800-939-8357, choose option 2. I want to go over your situation and help you understand your options more fully. Sending $20.00 is not going to get you where you need to be.
I got a car back in Oct of 2008 with my aunt as a cosigner. In aug of 2009, I lost my job and I wanted to give it back to the bank but my aunt decliend saying she would pay on it and picked the car up.
I found out in June 2011 that the car was repossed and my aunt was demanding that I give them money for her having her wages garnished. Long story short, my aunt ended up filing bancruptcy in 2011 and just last year in Nov 2014, the bank started garnishing my wages. I am a low-income family on government assistance and decided to challenge the garnishment. The judge denied me and said that their attorney was willing to work with me on the payments. I called the bank yesterday after the court hearing and they said i owe 13,500! The baalance on the car when it sold was 3,500! I asked them how in the world were they able to take on 10,000 and the attorney told me I have interest on it at 35% and for refiling fees. I once again explained to her, I could not afford that and i was enver notified of the car being repossed or sold at auction. I also told her that it doesn’t make any sense that they can add that much money onto it when the car had sold for what was left on the balance.
What can I do? I have 4 children and I can’t afford $75 every two weeks to come out of my paycheck. My hours vary from 28-36 hrs a week at 9.00/hr. I have been going to school so that I can try to get a better job but what is a temporary solution? Can they legally add on that much money?
Thank you!
Call an experienced debt collections defense and consumer rights attorney in your state. I can send you an email to some that offer a no cost initial consult. Post the state and a nearby larger city and I will send you what I have.
I bought a car in 2005. with payments wayyy too high I did a voluntary repossession in 2007. it sold in auction. and was left with 3000 to pay. I since haven’t worked . and currently still do not. when I look up my name on circuit court system it says it was originally filed on 9/22/2008 . I called back in 2013 to pay off debts and they had no recored of my name what so ever. so I figured I just this that amount of years where they stop going after you. well all of a sudden I keep getting someone coming to my door trying to “serve me papers” today he told my boyfriend “id hate to have her miss her court date” . so as of 9/22/2015 it’ll be 7 years. they refiled judgment on 5/12/2015 which is already in the 6 years just short of 7 years since them first filing. can they keep redoing a new judgment. can I send them something saying its with in WISCONSIN SOL? and I am no longer indebted to them ? is SOL for 6 years in Wisconsin or would this be considered a promissory note? and be 10? or is the promissory note null and void since the original contract is no longer valid since I did a voluntary repossession . and if I don’t get served the papers, am I still missing this court date this guy is speaking of? online it only shows this case as “filed only from May 2015. what does that mean? please help .
The Wisconsin SOL to sue legitimately in order to collect is 6 years.
You stopped paying on the car loan in 2007, and it sounds like they sued and got a judgment for the deficiency balance in 2008. They were well within the SOL if those timelines are accurate.
It sounds like the papers they are trying to serve you are for an asset hearing, or something similar. This is where you are in a court setting and under oath disclosing assets and income so that they can target how best to collect from you (or that you cannot pay anything at all right now).
The other SOL concerns that still apply will be the fact that judgments like yours can stay on your credit reports for 7 years from the date of entry. You need to know that the judgment not being on your credit report does not prevent them from collecting. They still have all legal enforcement to collect that judgment, and potential lenders will still be able to see that it is unresolved in the court.
Judgment debts are good for 20 years in Wisconsin. That means this could carry on until 2028. Wisconsin allows up to 12% interest to accrue on judgment debts. The amount owed is likely growing.
Can you come up with any strategy to raise enough money to settle for a lump sum of money, but for less than what is owed currently?
well that realllllly sucks. I will call my boyfriends bank and see if I can get my name taken off the account . . and see if I can come up with some amount of money its now I see they are asking over 5,000. the most I can give them is like 1500 at best.
because they could take all of his money right?
With your name and social attached to his account, that money could be at risk from a bank levy. If it were me I would get removed from the account until the judgment is resolved.
Getting a deficiency balance from a repossession that totals $5,000.00, and negotiating down to a pay off of $1,500.00, is something I see when there is no judgment. Getting that type of deal approved when there is a judgment is not all that common, though not impossible.
In 2008 I voluntarily surrendered a van that I could no longer afford after my husband and I separated. The loan was with GMAC and was in my name only. The car was sold at auction and a deficiency judgement was entered against me (and my ex husband, even though his name was not on the loan. We were married at the time). After that my financial situation got pretty bleak, although I was working. A couple attempts to garnish me were apparently unsuccessful. In 2010 I moved to Minnesota. In 2011 an apparently successful garnishment happened. I was under the impression that a garnishment could not happen across state lines unless the creditor got a judgement entered against me in MN. I had quit that original job, and have had several others since then, with no attempt to garnish. I found out that the SOL in AZ for that kind of debt is 5 years, and is renewable (they did re-enter the judgement in 2013 in AZ). I cannot see the court records here in MN because they are down for the weekend, but a preliminary search does not show anything against me in MN. My questions are: 1)How many times can they renew the judgement in AZ? 2) Can they pursue me across state lines without entering the judgement here in MN? 3) Can they attach/freeze my bank account if it is not in AZ (nor MN for that matter). Thank you for your time.
Does your current bank have branches in both Minnesota and Arizona?
No. It is a bank that does not have actual “branches”. It is based in another state entirely. What is interesting is that I do still have a bank account at a bank in AZ (that does not have branches in MN) and they have not tried to do anything with that account. Not that it ever has much money in it, but still!
Arizona judgments are good for 5 years and can be renewed for 5 years, and then another, etc.
Here is the plain language of Arizona statute on judgment renewals.
I a bit surprised they took the trouble to locate an out of state bank account to levy in the past. I would like some more details about that, but I would keep them off the site, so call in for a consult at 800-939-8357, choose option 2.You can also email the address you get these comment notifications from and set up a time to talk on the phone.
In the crash of 08, I was forced to close my business for failing to pay certain taxes. My wife & I filed BK7 in May of 09. Prior to losing the business, we gave Ford Motor Credit back a vehicle that was titled under the company. I never filed BK on the company itself. Now FMCC is sending a collection letter to the Company at my home address after 7 years for a deficiency, I’m guessing. Is that legal and am I personally responsible? The company has no assets. They also contacted me on my cell phone, the number I have only had a couple of years, asking if I had sold the company.
BTW, I live in New Mexico
There are a couple of ways to look at your situation.
First, the debt did not go away if it was never part of the bankruptcy. It should have been listed with the court, but was overlooked. The debt collector thinks they have a legitimate debt to collect on, and just because your state SOL to file a legitimate collection suit on the deficiency balance is passed, or that the debt may not be able to stay on your credit reports due to age, it does not mean collection attempts are illegal.
You may be inclined to look into whether there is a TCPA violation for the calls to your cell, but it appears this is a business debt only, and that may mean consumer protection laws would not apply in the normal course.
I would encourage you to speak with an experienced TCPA and/or FDCPA consumer law attorney in New Mexico and find out what your rights are in this situation. I can email you contact info I have on file for anyone in your state if you like?
FMCC was listed as a creditor in the BK. Please email contact info you said you have. Thanks
I misunderstood originally. I thought they were overlooked and not listed in the bankruptcy. Now it is even more important to talk things over with an experienced debt collection violation attorney in NM.
I sent you an email with contact details to 3. The last one is a new one I just learned of before this email. She was a former assistant attorney general in your state. I might call her first.
I negotiated a payment plan with the bank for the difficiency on the car I surrendered.
What do the bank report with credit bureaus?
Before I reply, I want to confirm that you agreed to make monthly payments, and if so, for how long?
My name is Phillip. My daughter purchased a used vehicle in Ga. 2 years ago car sold as is, the next day she took the car back transmission problems. No results with dealer. Made 2 payments then quit paying transmission went out. Repoed 30 days later. The sale price at purchase was 3.500 with 500 paid down. The dealer turned the debt too a collection agency thru garnishment she lacks one month paying the balance off. Question is, how can you have your cake and eat it at the same time.
It sounds like the auto dealer could be in violation of some lemon laws,or other consumer protection laws. I would file an accurate and thorough account of all that happened with your state AG, and also a debt collection complaint with the CFPB.
Post an update with how she progresses.
The letter is from the finance company. My uncle is planning to file for bankruptcy. Will that put both of us off the hook?
After your uncle files bankruptcy he is free of the debt, but as a cosigner, you are still on the hook for the full balance.
I live in NYC and I have cosigned a car (from carmax) for my uncle who lives in Georgia in 2010. The car has been reposed and sold and I just received a deficiency balance of $4945.61 letter, but my uncle has not received such a notice. He does not want to pay it. What do you advice? Can this amount be reduced to a $1000 if pay in lump sum?
The amount can be negotiated lower, but 20 percent may not be realistic. Can you pull together more money?
Is the letter about the deficiency balance from the finance company, or a debt collector?
I had 2 cars in NY and moved to Pa while moving to p.a. I got both car insuranced with pa insurance so I could register them. Registered one car but before I could get the second car done it was stolen. Now the insurance company denied the claim because it never made it to the state it was insured. So this just happened can they freeze my accounts and garish paychecks if I don’t pay off the car? What do I do? Is there a time frame that the financial company can seek payment if I stop paying for the car?
Are you in western or eastern PA? I want you to contact an experienced consumer law attorney for a no cost consult about your situation. I will email you contact details for the one you are closest to.
No, they cannot just garnish and levy. Not without suing you first and getting a judgment in court. Even then PA does not allow for wage garnishment for a debt like this.
Norristown, PA
I sent you the email with Jason’s contact points. Let me know how you progress.
I have a some what simular situation as to others ……. I had a Montero Sport in college and my Father co- signed on the vehicle for me . The engine failed on the SUV and I could not afford to keep up payments and get the Engine repaired at the dealer . This happened in 2007 I believe . The Court documents were sent to my grandmothers home in another city while Iwas still off to College . Since then my Father has passed and it’s still on my credit. I also voluntarily surrendered the vehicle when I couldnt afford repairs . Why didnt this go away when my father passed ? And how can I get rid of this I want to buy a home .
Most cosigners enter into the loan with shared liability, where if one person cannot or will not pay, the co borrower is on the hook. These loans will generally show on each cosigners credit reports.
Whose name(s) is the judgment against; yours alone; your fathers alone; or against both of you?
What is the date of the judgment?
What month in 2007 was the last payment made on the account?
What is the balance owed on the debt?
How prepared are you to settle the repossession/judgment for less than the balance in order to get a mortgage approved?
In the state of Utah, when trying to figure out when does the day of last activity starts on a repossessed car? is it the date when I made a last payment and the account became delinquent or when car was repossessed or when the car got sold??? My car was repossessed on April 09′ but I stop making payments about 5 months before it got repossessed, can I still be sued? I recived a phone call from the collection agency and they told me they legally had 8 years to sue me!!! Please help!!!
The SOL for a written contract in Utah is 6 years. That time frame generally starts when you missed that first payment. You would appear to be passed the 6 year statute already.
A debt collector telling you they have 8 years to file a legitimate lawsuit in Utah is false and misleading. I would want to run this by an experience collections violation attorney to see if they would suggest pursuing an FDCPA case on your behalf, and where you would not have an out of pocket expense. You can connect with one at 800-939-8357, choose option 5.
Over 10 years ago we returned a vehicle and stopped paying on it since then we never got any letters about a court date to pay remaining balance. Out of the blue we received a letter saying they were going to levy my bank account until payment was paid
Can they levy my account for unpaid car loan?
What is the name of the debt collector the sent you that letter? Did the letter refer to the court where there is a judgment against you?
The levy on your bank account requires a court judgment. And it is possible, unfortunately, to have been sued for the deficiency balance on the repossession and not known about it. This can sometimes be unwound.
What state are you in?
Hello, to answer your questions- no, the loan was never refinanced after my son turned 18 years old. The lender of the vehicle was Ford Motor Credit. The last payment made on the car was about 5 years ago. The original lender, Ford Motor Credit is who sued. The attorney firm who was hired by Ford Motor Credit is Sklar -Markind, Attorneys, and they are located in Cherry Hill, NJ. No, I do not own any property or real estate. This whole situation has me incredibly stressed, And I dont know when I will ever be in a stable financial situation to be able to start paying back this debt. My hours on my job vary greatly every week, and I am desperately trying to find something stable. As far as the back account with my boyfriend, I was under the impression that joint accounts could not be touched – how can they take money away from someone who has nothing to do with this situation? How can they prove whose money is whose? I cannot tell you how devastating this would be to both of us if this joint account were to be levied-we would be completely ruined. I want to pay back this debt, but for the right here and now I want to protect what little money I do have so that my children and I can survive. What can I do to have this levy removed from my bank account? If PA has an allowance of 300.00 that cannot be touched, and that is what I have in the account, dont they have to remove the levy? Are there any laws stating how long they have to remove it after the letter of interrogatories is received ? Its been over two weeks now and i am getting desperate. Will every bank account I ever open eventually be levied like this? Is there any hope of trying to get this resolved so that i can move on with my life? Thank you so much for any assistance you can give me.
Keri – When it comes to joint accounts, you and I would use common sense and think that a debt collector cannot levy and harm someone not party to the collection. The problem here is that collectors don’t care about that. They care about getting paid. Filing a levy and getting money from an account that has your name on it gets them paid. Can you get money that is not yours that was taken returned to your boyfriend? Yes, but it is a process. When this happens, it is unfortunately going wind up being YOU who gets to prove whose money is whose. I am sure you want to avoid this when possible. The best way to do that would be for you to remove yourself from the account. Continue to get paper checks from work and endorse them over for deposit, or cash them and pay bills with money orders etc., until you resolve the collection judgment.
I cannot comment as to when the current levy gets removed and the 300 released back to you, or when/if the account would no longer be flagged anytime the balance exceeds the 300. It is a process that takes time, and will differ based different variables.
Yes, you should assume that any bank account with your name on it will be at risk of a levy until:
The collection is resolved.
The account contains only exempt funds such as received from social security, disability, or other exempt funds. Even then you have to be sure no other source of funds are deposited.
You should develop a plan to pay this collection off. You can settle it for less than the balance, but you need to have the financial resources for that. Let’s assume for a moment that you could settle the debt for half of the 8k. Can you come up with the 4k, and how long will that take? It does not have to be overnight. You could accumulate it over time while living and paying bills on a cash basis until you settle.