I know a law firm for a credit card company can seize your checking/savings account after winning a lawsuit, but can they take EVERTYTHING in the account to settle the debt or just a portion? If I owe them $5000 and my account has just $2000 in it, can they take the ENTIRE ammount or a portion? The same quiestion applies to my federal income tax refund. Can they take it all?
Yes, they can seize the $2000...then everything else that gets deposited until the whole amount is paid. Your account will be frozen, so no activity can take place. They also can place a block on any safe deposit boxes you have. So if they do that, any income, etc that you have direct deposited will be seized immediately. Often times they do all this without notice (to keep people from clearing it out first). If this happens, sure hope you don't have any debit/check transactions out, because they will bounce. And don't even think of opening another account, there or at another branch...won't work.
Depends on the state and it can also depend on other factors, too, such as if you're self-employed etc. OTH, if you have regular direct-deposit into any account, you can halt it.
What if I opened another account with a different bank? How long would it take them to find that one?
If you have direct deposit, it won't take long to find an account at another bank. If you currently have direct deposit, stop the direct deposit and you can work with hard checks. There are literally millions of Americans who function without bank accounts and use money orders to pay their bills. If you have full-time employment, it's possible that a portion of your wages could be garnished but each situation can be unique depending on the state. If you're self-employed, that could make a difference too. If no move has been made on your account, you have every right to withdraw any funds there. This is a bit of a side-bar but think of it this way: what would you do if "online" didn't come "on"? How would you function? It's wise to have some liquid cash, something that can pay basic bills or emergency needs without being dependent on any savings institution. You need to look at your state's laws and how they apply to your particular situation. A judgement really can be forever in some states and you should get competent legal advice.
