Creditor withdrew ALL money in my bank account!!! What can I do?

Question

I have a judgement against me for some medical bills from my son. The creditor was able to take $2,377.00 out of my checking account when there was only $1,212.00 in there at the time. I live in Oregon and I am quite sure that they are only able to take 25%. On top of that, even though the account is in my name, my roommate uses it too. $1,000.00 of what was taken out belongs to him. I have outstanding checks out for rent and bills and now I have overdraft fees too, and I'm going to have more when these checks go through! I'm not sure about how the bank (Washington Mutual) was able to let them have access to money that I don't even have. Any advice? Thanks in advance

Answer 1

75% of disposable earnings are exempt from seizure.

You could petition the court to have the funds returned.
You need to read your states rules regarding the process of objecting to a bank levy. Or, speak with an attorney.

Answer 2

Since you knew they had a judgement the creditor probably also applied to freeze your account for payment. They will sometimes try to garnish your wages. So either you did not make enough for them to do that or they could not find where you worked. Once the court gives the creditor authorization to do that Washington Mutual has no choice in the matter, they are required by law to freeze your account.

The 25% you mentioned applies when they do a wage garnishment. That is they can take no more than 25% of your gross income. They do account for some essential expenses or if you have other court ordered garnishments.

When they attach a bank account there is no percentage limit. They basically own that account until the judgement is settled. It had your name on it which is why they attached it, unfortunatly your roommate got caught up in it also. I don't know about oregon laws so you might be able to file a claim with the courts for his money. However, it probably won't be successful because there is no way for the courts to determine for certain that it was not your money.

Answer 3

Yes they can. The theory is that who is to know what part of the money is yours or theirs. Ceditors can also just freeze your entire account until the money is paid and you can funish proof t the bank that you have paid. Happened to me several years ago. Which sucked because since the account was frozen I could not take money out to pay the bill. If you have concerns about this to be on the safe side get an indivual account in the name of whoever owes less. Keep the joint account for paying bills and such but deposit the bulk of the money in the account of the person who owes less. You should not totally merge money unless you are married anyway. Nor do you want to keep all of your eggs in one basket. The best thing is each have an account in their own name and also have a joint for whatever else. Each partner can transfer money into the joint as needed if it is the same bank. Sorry I diverged. But yes, if either gets a judgement it comes out of the same pot.

Answer 4

Had something similar happen to me a few years ago. I don't know what your state's laws are either. But I moved and I had saved up over $2,000 to help me when I moved. I had put this money in a savings account so I could build it up without touching it. I had no clue that something had happened on the account and my bank did not inform me. I was just putting in money every pay check thinking it was growing. I then went to close the account and with drawl the money because I was a few days from moving. I was told my account was frozen, I could put money in but couldn't take it out... I was really really mad. It was a judgment that I was aware of the creditor but not aware that they had a judgment against me. Even tho I had more money in the account then they were owed the account was still frozen. They basically got all the cash and then sent me a check for what they had that I didn't owe them and that took a few months. So your probably screwed and because the account is in your name it doesn't matter for your buddy cause you own it technically.

Answer 5

As of YESTERDAY, you will NEVER put any money in that account that is not intended to pay that creditor. You will also NEVER allow ANY creditor direct access to your account.
BTW, There WAS $2,377 in your account when the creditor submitted the charge. The bank would have rejected the charge otherwise. Unless you have overdraft protection, electronic drafts exceeding your balance are refused by ANY bank.

Answer 6

Sounds to me that not only was it a judgement, it is also a court order. Did you miss a court appearance or opportunity to go before a mediator? If so, this could be the reason why. Unfortunately, you cannot undue a garnishment once it has been court ordered.

Answer 7

If you know the name of the person at the creditors office who did this you could take your shotgun and head on over.

I wouldn't blame you, i might even help you flee the country afterward.

Answer 8

you need to contact your bank immediately.. i dont know what the rules are in oregon, but you really need to call your bank.